Exam 3: Professional Ethics

The AICPA's Code of Professional Conduct includes principles, rules and interpretations. a. Describe the purpose of each of the three parts. b. Describe the disciplinary action that may be taken against a member who violates the Code. c. Must the Rules be followed by members of the AICPA that are not in public practice? Explain your answer.

(Essay)

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Question 41

Which of the following is not a safeguard that is ordinarily considered in evaluating threats to auditor independence?

(Multiple Choice)

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Question 42

A CPA's retention of client records as a means of enforcing payment of an overdue audit fee is an action that is:

(Multiple Choice)

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Question 43

A small CPA firm provides audit services to a large local company. Almost eighty percent of the CPA firm's revenues come from this client. Which statement is most likely to be true?

(Multiple Choice)

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Question 44

Which of the following attributes is more closely associated with attestation services performed by a CPA firm than with other lines of professional work?

(Multiple Choice)

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Question 45

The Rules portion of the AICPA Code of Professional Conduct must be followed by only those members in private practice.

(True/False)

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Question 46

In which of the following circumstances would a covered member be considered independent when performing the audit of the financial statements of a new client for the year ended December 31, 20X3?

(Multiple Choice)

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Question 47

Which of the following acts by a CPA would not necessarily be considered an act discreditable to the profession under the AICPA Code of Professional Conduct?

(Multiple Choice)

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Question 48

A CPA may receive a commission for recommending a particular computer system to an audit client.

(True/False)

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Question 49

The AICPA allows an auditor to perform which of the following services for an audit client?

(Multiple Choice)

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Question 50

Which of the following statements is correct?

(Multiple Choice)

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Question 51

A CPA should maintain objectivity and be free of conflicts of interest when performing:

(Multiple Choice)

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Question 52

Bill Pan, CPA, has posted the general ledger and has maintained the financial records of Zorko Corporation. As a part of his responsibilities he has recorded journal entries and made closing entries. Which of the following best summarize the AICPA and SEC views as to the following question: Is audit independence impaired? Item AICPA SEC A. Yes Yes B. Yes No C. No Yes D. No No

(Multiple Choice)

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Question 53

If a CPA violates the AICPA Code of Professional Conduct, the AICPA Trial Board may do all of the following, except:

(Multiple Choice)

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Question 54

Under the AICPA Code of Professional Conduct, which of the following rules is not applicable to CPAs in business?

(Multiple Choice)

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Question 55

Jones & Company CPAs has one office. Which of the following is least likely to impair independence with respect to an audit client?

(Multiple Choice)

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Question 56

Which of the following is not a broad category of safeguards that mitigate or eliminate threats to independence?

(Multiple Choice)

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Question 57

The AICPA Code of Professional Conduct will ordinarily be considered to have been violated when the CPA represents that specific consulting services will be performed for a stated fee and it is apparent at the time of the representation that the:

(Multiple Choice)

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Question 58

Pickens and Perkins, CPAs, decide to incorporate their practice of accountancy. According to the AICPA Code of Professional Conduct, shares in the corporation can be issued:

(Multiple Choice)

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Question 59

The AICPA Code of Professional Conduct would be violated if a CPA accepted a fee for services and the fee was:

(Multiple Choice)

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Question 60

Showing 41 - 60 of 62

Which of the following is not a safeguard that is ordinarily considered in evaluating threats to auditor independence?

A CPA's retention of client records as a means of enforcing payment of an overdue audit fee is an action that is:

A small CPA firm provides audit services to a large local company. Almost eighty percent of the CPA firm's revenues come from this client. Which statement is most likely to be true?

Which of the following attributes is more closely associated with attestation services performed by a CPA firm than with other lines of professional work?

The Rules portion of the AICPA Code of Professional Conduct must be followed by only those members in private practice.

In which of the following circumstances would a covered member be considered independent when performing the audit of the financial statements of a new client for the year ended December 31, 20X3?

Which of the following acts by a CPA would not necessarily be considered an act discreditable to the profession under the AICPA Code of Professional Conduct?

A CPA may receive a commission for recommending a particular computer system to an audit client.

The AICPA allows an auditor to perform which of the following services for an audit client?

Which of the following statements is correct?

A CPA should maintain objectivity and be free of conflicts of interest when performing:

If a CPA violates the AICPA Code of Professional Conduct, the AICPA Trial Board may do all of the following, except:

Under the AICPA Code of Professional Conduct, which of the following rules is not applicable to CPAs in business?

Jones & Company CPAs has one office. Which of the following is least likely to impair independence with respect to an audit client?

Which of the following is not a broad category of safeguards that mitigate or eliminate threats to independence?

The AICPA Code of Professional Conduct will ordinarily be considered to have been violated when the CPA represents that specific consulting services will be performed for a stated fee and it is apparent at the time of the representation that the:

Pickens and Perkins, CPAs, decide to incorporate their practice of accountancy. According to the AICPA Code of Professional Conduct, shares in the corporation can be issued:

The AICPA Code of Professional Conduct would be violated if a CPA accepted a fee for services and the fee was:

The Role of the Public Accountant in the American Economy

Professional Standards

Legal Liability of Cpas

Audit Evidence and Documentation

Planning the Audit; Linking Audit Procedures to Risk

Internal Control

Consideration of Internal Control in an Information Technology Environment

Audit Sampling

Cash and Financial Investments

Accounts Receivable, Notes Receivable, and Revenue

Inventories and Cost of Goods Sold

Property, Plant, and Equipment: Depreciation and Depletion

Accounts Payable and Other Liabilities

Debt and Equity Capital

Auditing Operations and Completing the Audit

Auditors Report

Integrated Audits of Public Companies

Additional Assurance Services: Historical Financial Information

Additional Assurance Services: Other Information

Internal, Operational, and Compliance Auditing

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