Question 1

Which of the following statements is FALSE when a PA has an investment in a nonclient investor?

Accepted Answer

A) This investment may be a direct or material indirect financial interest that will diminish independence with respect to a client investee. 
B) Independence is not impaired,as long as the PA does not have significant influence over the actions or financial statements of the nonclient investor. 
C) Independence is impaired when the PA's investment gives him or her significant influence over the actions of the nonclient investor,which might in turn influence the client investee. 
D) The independence of the PA is always impaired when a PA has an investment in a nonclient investor because it puts him or her in a position similar to that of a member of management of the client investee. 
A) This investment may be a direct or material indirect financial interest that will diminish independence with respect to a client investee. 
B) Independence is not impaired,as long as the PA does not have significant influence over the actions or financial statements of the nonclient investor. 
C) Independence is impaired when the PA's investment gives him or her significant influence over the actions of the nonclient investor,which might in turn influence the client investee. 
D) The independence of the PA is always impaired when a PA has an investment in a nonclient investor because it puts him or her in a position similar to that of a member of management of the client investee. D

Question 2

A PA in a large firm has been asked to take over the audit of a client in the pharmaceutical industry from another PA who quit abruptly.The PA is unfamiliar with the pharmaceutical industry.The PA should trust that the work was properly planned by the previous PA and should follow that plan carefully.

Accepted Answer

A) True 
 B)False  False

Question 3

If a CA is expelled from his or her provincial institute,what does that mean in practical terms?

Accepted Answer

A) The member can no longer use the initials CA behind his or her name on any cards or correspondence. 
B) The member can no longer practise as an accountant. 
C) The member will no longer be permitted to practise as a public accountant in Canada. 
D) The member will no longer be permitted to receive copies of the CA magazine. 
A) The member can no longer use the initials CA behind his or her name on any cards or correspondence. 
B) The member can no longer practise as an accountant. 
C) The member will no longer be permitted to practise as a public accountant in Canada. 
D) The member will no longer be permitted to receive copies of the CA magazine. A

Question 4

Discuss the rules relating to the provision of accounting and other services by a PA.

Accepted Answer

If a PA performs the bookkeeping and mak

Question 5

The duty of confidentiality requires a PA to do which of the following?

Accepted Answer

A) Not disclose client information under any circumstances. 
B) Not disclose client information if it is deemed to be confidential. 
C) Not disclose client information unless required to do so by a validly issued subpoena or summons. 
D) Not disclose evidence of illegal acts to the relevant authorities. 
A) Not disclose client information under any circumstances. 
B) Not disclose client information if it is deemed to be confidential. 
C) Not disclose client information unless required to do so by a validly issued subpoena or summons. 
D) Not disclose evidence of illegal acts to the relevant authorities.

Question 6

Which of the following statements regarding independence and litigation is FALSE?

Accepted Answer

A) When a PA and a client move into an adversary relationship and away from the cooperative one needed in an assurance engagement,independence is threatened by appearances of the PA trying to serve his or her own best interests. 
B) PAs are still considered independent even if company management threatens to start a lawsuit against them. 
C) PAs are not considered to be independent when company management actually starts a lawsuit against them. 
D) PAs are not considered to be independent when company management alleges deficiencies in audit or other assurance work. 
A) When a PA and a client move into an adversary relationship and away from the cooperative one needed in an assurance engagement,independence is threatened by appearances of the PA trying to serve his or her own best interests. 
B) PAs are still considered independent even if company management threatens to start a lawsuit against them. 
C) PAs are not considered to be independent when company management actually starts a lawsuit against them. 
D) PAs are not considered to be independent when company management alleges deficiencies in audit or other assurance work.

Question 7

The interpretations related to the rules governing objectivity or independence allow ________.

Accepted Answer

A) a PA to hold a material indirect interest in a client 
B) a PA to finance a home mortgage with a client if the mortgage is made under the client's normal lending procedures and terms 
C) a PA's spouse to hold a position as a director of a client's organization 
D) a PA to serve as a trustee of the pension fund of a client 
A) a PA to hold a material indirect interest in a client 
B) a PA to finance a home mortgage with a client if the mortgage is made under the client's normal lending procedures and terms 
C) a PA's spouse to hold a position as a director of a client's organization 
D) a PA to serve as a trustee of the pension fund of a client

Question 8

In the interest of independence,CPAB and SOX require the rotation of the lead audit partner and/or concurring review partner every ________.

Accepted Answer

A) year 
B) two years 
C) five years 
D) ten years 
A) year 
B) two years 
C) five years 
D) ten years

Question 9

Whenever there is a conflict-of-interest situation for the auditor,there is a potential to create a threat to the auditor's independent state of mind.

Accepted Answer

A) True 
 B)False

Question 10

Withholding a client's books and records when the client has requested their return is an example of ________.

Accepted Answer

A) a contingency 
B) a discreditable act 
C) fraud 
D) self-regulation 
A) a contingency 
B) a discreditable act 
C) fraud 
D) self-regulation

Question 11

Discuss the deficiencies in professional codes of conduct for PAs.

Accepted Answer

Whenever there is a conflict-of-interest

Question 12

Canada Customs and Revenue Agency has requested the taxes payable working papers of ABC Co.from CA.CA should ________.

Accepted Answer

A) request client permission,and then provide the working papers 
B) not provide the working papers nor discuss the matter with the client 
C) inform the client that the working papers should not be provided 
D) provide the working papers immediately to avoid tax problems 
A) request client permission,and then provide the working papers 
B) not provide the working papers nor discuss the matter with the client 
C) inform the client that the working papers should not be provided 
D) provide the working papers immediately to avoid tax problems

Question 13

Under the limited liability partnership (LLP)form of organization,the only partners with personal assets at risk are those involved in the litigated engagement,while the others risk only their investment in the partnership.

Accepted Answer

A) True 
 B)False

Question 14

Confidentiality principles allow a PA to ignore the obligation to comply with a validly issued subpoena or summons.

Accepted Answer

A) True 
 B)False

Question 15

Describe how actual or threatened litigation affects auditor independence.

Accepted Answer

When a PA and a client move into an adve

Question 16

Discuss how a PA can preserve independence while accepting an honorary position in nonprofit organizations.

Accepted Answer

Ordinarily,independence is impaired if a

Question 17

The ICAO Rules of Professional Conduct prohibit CAs from accepting contingency fees under any and all circumstances.

Accepted Answer

A) True 
 B)False

Question 18

Briefly describe the process followed by the ICAO when investigating and charging a member with violating one of the rules of professional conduct.

Accepted Answer

Any complaint against a member must be s

Question 19

Independence is not impaired if a PA serves on an organization's board of directors.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

The professional competence and due care

Which of the following statements is FALSE when a PA has an investment in a nonclient investor?

If a CA is expelled from his or her provincial institute,what does that mean in practical terms?

Discuss the rules relating to the provision of accounting and other services by a PA.

The duty of confidentiality requires a PA to do which of the following?

Which of the following statements regarding independence and litigation is FALSE?

The interpretations related to the rules governing objectivity or independence allow ________.

In the interest of independence,CPAB and SOX require the rotation of the lead audit partner and/or concurring review partner every ________.

Whenever there is a conflict-of-interest situation for the auditor,there is a potential to create a threat to the auditor's independent state of mind.

Withholding a client's books and records when the client has requested their return is an example of ________.

Discuss the deficiencies in professional codes of conduct for PAs.

Canada Customs and Revenue Agency has requested the taxes payable working papers of ABC Co.from CA.CA should ________.

Under the limited liability partnership (LLP)form of organization,the only partners with personal assets at risk are those involved in the litigated engagement,while the others risk only their investment in the partnership.

Confidentiality principles allow a PA to ignore the obligation to comply with a validly issued subpoena or summons.

Describe how actual or threatened litigation affects auditor independence.

Discuss how a PA can preserve independence while accepting an honorary position in nonprofit organizations.

The ICAO Rules of Professional Conduct prohibit CAs from accepting contingency fees under any and all circumstances.

Briefly describe the process followed by the ICAO when investigating and charging a member with violating one of the rules of professional conduct.

Independence is not impaired if a PA serves on an organization's board of directors.

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

Introduction to Auditing

Auditors Professional Roles and Responsibilities

Auditors Ethical and Legal 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

hapter 15 Completing the Audit Work

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

Other Public Accounting Services and Reportsreviews and Compilations

The Audit of Accounting Estimates: Basic Material Relating to Accounting Estimates

Legal Liability Cases

Other Professional Accounting Services and Reports, Including Fraud Auditing

Filters

Exam 18: Professional Rules of Conduct Details and Auditor Responsibilities

Which of the following statements is FALSE when a PA has an investment in a nonclient investor?

If a CA is expelled from his or her provincial institute,what does that mean in practical terms?

Discuss the rules relating to the provision of accounting and other services by a PA.

The duty of confidentiality requires a PA to do which of the following?

Which of the following statements regarding independence and litigation is FALSE?

The interpretations related to the rules governing objectivity or independence allow ________.

In the interest of independence,CPAB and SOX require the rotation of the lead audit partner and/or concurring review partner every ________.

Whenever there is a conflict-of-interest situation for the auditor,there is a potential to create a threat to the auditor's independent state of mind.

Withholding a client's books and records when the client has requested their return is an example of ________.

Discuss the deficiencies in professional codes of conduct for PAs.

Canada Customs and Revenue Agency has requested the taxes payable working papers of ABC Co.from CA.CA should ________.

Under the limited liability partnership (LLP)form of organization,the only partners with personal assets at risk are those involved in the litigated engagement,while the others risk only their investment in the partnership.

Confidentiality principles allow a PA to ignore the obligation to comply with a validly issued subpoena or summons.

Describe how actual or threatened litigation affects auditor independence.

Discuss how a PA can preserve independence while accepting an honorary position in nonprofit organizations.

The ICAO Rules of Professional Conduct prohibit CAs from accepting contingency fees under any and all circumstances.

Briefly describe the process followed by the ICAO when investigating and charging a member with violating one of the rules of professional conduct.

Independence is not impaired if a PA serves on an organization's board of directors.

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

Introduction to Auditing

Auditors Professional Roles and Responsibilities

Auditors Ethical and Legal 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

hapter 15 Completing the Audit Work

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

Other Public Accounting Services and Reportsreviews and Compilations

The Audit of Accounting Estimates: Basic Material Relating to Accounting Estimates

Legal Liability Cases

Other Professional Accounting Services and Reports, Including Fraud Auditing

Filters