Exam 3: Auditors Ethical and Legal Responsibilities

An ethical dilemma is one in which the choice of alternative actions affects the well-being of other persons.

A letter where accountants sign that they have been notified that a particular recipient of the financial statements and audit report intends to rely upon them for particular purposes is known as a(n) ________.

What must a plaintiff prove regarding an action brought under common law against a PA?

Discuss the rules relating to the provision of accounting and other services by a public accountant (PA).

Discuss how a public accountant (PA) can preserve independence while accepting an honorary position in non-profit organizations.

The CPA Ontario Rules of Professional Conduct contain both general ethical principles that are idealistic in character and also a ________.

If a public accountant (PA) performs the bookkeeping and makes accounting decisions for a company and the management does not know enough about the financial statements to take primary responsibility for them, the PA cannot be considered independent for assurance services.

The "Rules of Professional Conduct" for professional accountants apply to services performed by members in both public and private practice.

Many users of audit reports expect auditors to detect fraud, theft, and illegal acts, and to report them publicly.

A succinct, but comprehensive definition of independence is that an auditor ________.

A client's management claims that they have to restrict an auditor's access to a research laboratory to protect the safety of the auditor. This could be an example of a lack of ________.

In a study of law cases of accountants' and auditors' legal troubles, the greatest percentage arose from ________.

Explain the difference among integrity, independence, and objectivity.

The failure to perform a duty with the requisite standard of care is known as _______.

"Let your conscience be your guide" is an ethical principle that fits all situations.

The "Rules of Professional Conduct, " state the set of very specific rules that flow from the general principles and are considered to be minimum standards.

Explain how CPA Ontario enforces the "fundamental statements of accepted conduct" and the "Rules of Professional Conduct."

A complaint has been made against a member for an audit failure. If this complaint is found to have merit, under which CPA Ontario Rule of Professional Conduct is the member likely to be charged?

Which of the following philosophical principles of ethics places emphasis on the consequences of action, rather than on following the rules?

In common law actions, the burden of proof lies with the ________.