Question 1

What is joint and several liability?

Accepted Answer

This is a doctrine that allows a success

Question 2

Ethical theories can be divided into two types: monistic and pluralistic. Explain each.

Accepted Answer

Monistic theories assume that universal

Question 3

The fundamental principles of accepted conduct are only general guidelines; therefore, they are not as important as the specific rules.

Accepted Answer

A) True 
 B)False

Question 4

The goal of the critical-thinking framework reflects ________.

Accepted Answer

A)  independence 
B)  ideal audit virtues 
C)  skepticism 
D)  ethics 
A)  independence 
B)  ideal audit virtues 
C)  skepticism 
D)  ethics

Question 5

Regarding honorary positions in non-profit organizations, which of the following statements is FALSE?

Accepted Answer

A)  Professional accountants can be honorary directors of charity hospitals, fund drives, symphony orchestra societies, and other non-profit organizations, as long as the position is purely honorary. 
B)  The professional accountant cannot be identified as an honorary director on letterheads and other literature. 
C)  The only form of participation is the use of the professional accountant's name. 
D)  The professional accountant does not vote with the board or participate in management functions. 
A)  Professional accountants can be honorary directors of charity hospitals, fund drives, symphony orchestra societies, and other non-profit organizations, as long as the position is purely honorary. 
B)  The professional accountant cannot be identified as an honorary director on letterheads and other literature. 
C)  The only form of participation is the use of the professional accountant's name. 
D)  The professional accountant does not vote with the board or participate in management functions.

Question 6

In the course of performing an audit, an auditor begins dating the CFO of the auditee. What kind of threat to independence might arise?

Accepted Answer

A)  Self-review threat. 
B)  Self-interest threat. 
C)  Familiarity threat. 
D)  Intimidation threat. 
A)  Self-review threat. 
B)  Self-interest threat. 
C)  Familiarity threat. 
D)  Intimidation threat.

Question 7

Which of the following philosophical principles in ethics places emphasis on the importance of following rules rather than on weighing the consequences of actions?

Accepted Answer

A)  Kantian principle. 
B)  Utilitarian principle. 
C)  Consequentialism principle. 
D)  Moral principle. 
A)  Kantian principle. 
B)  Utilitarian principle. 
C)  Consequentialism principle. 
D)  Moral principle.

Question 8

How can competence and due care best be described?

Accepted Answer

A)  Competence and due care both refer to the PA doing their best for their clients. 
B)  Competence refers to technical ability; due care refers to strictly following official pronouncements of accounting principles. 
C)  Competence is knowing what do; due care is doing it to the best of one's abilities. 
D)  Competence and due care both refer to ongoing technical training. 
A)  Competence and due care both refer to the PA doing their best for their clients. 
B)  Competence refers to technical ability; due care refers to strictly following official pronouncements of accounting principles. 
C)  Competence is knowing what do; due care is doing it to the best of one's abilities. 
D)  Competence and due care both refer to ongoing technical training.

Question 9

It is sometimes said that there is a strong link between codes of conduct and GAAS. Explain.

Accepted Answer

Codes of conduct can be viewed

Question 10

In addition to liabilities imposed by common law, auditors need also be concerned about what other type of liability?

Accepted Answer

A)  Statutory law. 
B)  Tort law. 
C)  Professional liability. 
D)  Negligence. 
A)  Statutory law. 
B)  Tort law. 
C)  Professional liability. 
D)  Negligence.

Question 11

Which of the following items is the most important principle in the "fundamental statements of accepted conduct"?

Accepted Answer

A)  Maintain the reputation of the profession. 
B)  Act with due care. 
C)  Maintain independence. 
D)  Act with professional courtesy. 
A)  Maintain the reputation of the profession. 
B)  Act with due care. 
C)  Maintain independence. 
D)  Act with professional courtesy.

Question 12

Which of the following statements regarding independence with respect to accounting and other services is FALSE?

Accepted Answer

A)  If a professional accountant (P
A)  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. 
B)  If a 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, it might be perceived that the PA has both prepared the financial statements or other data and given an audit report or other assurance on his or her own work. 
C)  The PA cannot perform the bookkeeping for a company and also provide assurance services. 
D)  The PA can counsel the client management about the accounting principle choices, but in the final analysis the management must be able to say, "These are our financial statements (or other data); we made the choices of accounting principles; we take primary responsibility for them." 
A)  If a professional accountant (P
A)  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. 
B)  If a 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, it might be perceived that the PA has both prepared the financial statements or other data and given an audit report or other assurance on his or her own work. 
C)  The PA cannot perform the bookkeeping for a company and also provide assurance services. 
D)  The PA can counsel the client management about the accounting principle choices, but in the final analysis the management must be able to say, "These are our financial statements (or other data); we made the choices of accounting principles; we take primary responsibility for them."

Question 13

Summarize the professional competence and due care rules of the various codes of conduct.

Accepted Answer

Professional competence: Undertake only

What is joint and several liability?

Ethical theories can be divided into two types: monistic and pluralistic. Explain each.

The fundamental principles of accepted conduct are only general guidelines; therefore, they are not as important as the specific rules.

The goal of the critical-thinking framework reflects ________.

Regarding honorary positions in non-profit organizations, which of the following statements is FALSE?

In the course of performing an audit, an auditor begins dating the CFO of the auditee. What kind of threat to independence might arise?

Which of the following philosophical principles in ethics places emphasis on the importance of following rules rather than on weighing the consequences of actions?

How can competence and due care best be described?

It is sometimes said that there is a strong link between codes of conduct and GAAS. Explain.

In addition to liabilities imposed by common law, auditors need also be concerned about what other type of liability?

Which of the following items is the most important principle in the "fundamental statements of accepted conduct"?

Which of the following statements regarding independence with respect to accounting and other services is FALSE?

Summarize the professional competence and due care rules of the various codes of conduct.

Introduction to Auditing

Auditors Professional Roles and Responsibilities

Reports on Audited Financial Statements

Preliminary Audit Planning: Understanding the Auditees Business

Assessing Risks in an Audit Engagement

Internal Control Over Financial Reporting

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

The Revenues, Receivables, and Receipts Process and Cash Account Balance

The Purchases, Payables, and Payments Process

Payroll and Production Processes

The Finance and Investment Process

Completing the Audit Work

Applying Professional Judgment to Form the Audit Opinion and Issue Theaudit Report

Other Public Accounting Services and Reportsreviews and Compilations

Professional Rules of Conduct Details and Auditor Responsibilities

Part I the Audit of Accounting Estimates: Basic Material Relating to Accountingestimates

Legal Liability Cases

Other Professional Accounting Services and Reports, Including Fraud

Filters

Exam 3: Auditors Ethical and Legal Responsibilities

What is joint and several liability?

Ethical theories can be divided into two types: monistic and pluralistic. Explain each.

The fundamental principles of accepted conduct are only general guidelines; therefore, they are not as important as the specific rules.

The goal of the critical-thinking framework reflects ________.

Regarding honorary positions in non-profit organizations, which of the following statements is FALSE?

In the course of performing an audit, an auditor begins dating the CFO of the auditee. What kind of threat to independence might arise?

Which of the following philosophical principles in ethics places emphasis on the importance of following rules rather than on weighing the consequences of actions?

How can competence and due care best be described?

It is sometimes said that there is a strong link between codes of conduct and GAAS. Explain.

In addition to liabilities imposed by common law, auditors need also be concerned about what other type of liability?

Which of the following items is the most important principle in the "fundamental statements of accepted conduct"?

Which of the following statements regarding independence with respect to accounting and other services is FALSE?

Summarize the professional competence and due care rules of the various codes of conduct.

Introduction to Auditing

Auditors Professional Roles and Responsibilities

Reports on Audited Financial Statements

Preliminary Audit Planning: Understanding the Auditees Business

Assessing Risks in an Audit Engagement

Internal Control Over Financial Reporting

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

The Revenues, Receivables, and Receipts Process and Cash Account Balance

The Purchases, Payables, and Payments Process

Payroll and Production Processes

The Finance and Investment Process

Completing the Audit Work

Applying Professional Judgment to Form the Audit Opinion and Issue Theaudit Report

Other Public Accounting Services and Reportsreviews and Compilations

Professional Rules of Conduct Details and Auditor Responsibilities

Part I the Audit of Accounting Estimates: Basic Material Relating to Accountingestimates

Legal Liability Cases

Other Professional Accounting Services and Reports, Including Fraud

Filters