Question 1

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

Accepted Answer

The professional competence and due care

Question 2

Under which of the following situations is the payment or receipt of a commission by a public accountant (PA)permissible?

Accepted Answer

A) A PA has a lawyer for an audit client;each time the lawyer helps the PA by referring a new client,the PA pays the lawyer a $1,000 referral fee. 
B) A PA performs a review of the financial statements of a client.The PA also works as a commissioned salesperson for that client. 
C) A PA has a dry-cleaning business as a client.The PA is given a 10% discount on cleaning services each time a new customer comes to the dry cleaner on the recommendation of the PA.The PA only prepares tax returns for the dry-cleaning business. 
D) An audit client that sells automobiles pays the PA $500 each time a customer that was referred to the audit client by the PA buys a car. 
A) A PA has a lawyer for an audit client;each time the lawyer helps the PA by referring a new client,the PA pays the lawyer a $1,000 referral fee. 
B) A PA performs a review of the financial statements of a client.The PA also works as a commissioned salesperson for that client. 
C) A PA has a dry-cleaning business as a client.The PA is given a 10% discount on cleaning services each time a new customer comes to the dry cleaner on the recommendation of the PA.The PA only prepares tax returns for the dry-cleaning business. 
D) An audit client that sells automobiles pays the PA $500 each time a customer that was referred to the audit client by the PA buys a car.

Question 3

Any complaint against a member must be submitted in writing.

Accepted Answer

A) True 
 B)False

Question 4

Briefly describe the process followed by CPA Ontario 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 5

As self-regulating bodies,professional institutes have a duty to investigate all written complaints received about their members and students accepted into their programs.

Accepted Answer

A) True 
 B)False

Question 6

Successor auditors are required to make certain enquiries of predecessor auditors when a new client is obtained.

Accepted Answer

A) True 
 B)False

Question 7

The duty of confidentiality requires a public accountant (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 8

Which of the following statements regarding confidentiality principles is FALSE?

Accepted Answer

A) The general principle of confidentiality is that a public accountant (P
A) must not disclose any confidential information without the specific consent of the client. 
B) These principles allow a PA to ignore the obligation to comply with a validly issued subpoena or summons. 
C) Members of any professional association involved with professional practice reviews may not disclose any confidential client information that comes to their attention in carrying out those reviews,but neither should it restrict any exchange of information that is necessary for the review. 
D) Confidential information is information that should not be disclosed to outside parties unless demanded by a court or an administrative body with the power to do so. 
A) The general principle of confidentiality is that a public accountant (P
A) must not disclose any confidential information without the specific consent of the client. 
B) These principles allow a PA to ignore the obligation to comply with a validly issued subpoena or summons. 
C) Members of any professional association involved with professional practice reviews may not disclose any confidential client information that comes to their attention in carrying out those reviews,but neither should it restrict any exchange of information that is necessary for the review. 
D) Confidential information is information that should not be disclosed to outside parties unless demanded by a court or an administrative body with the power to do so.

Question 9

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 10

Jack,a CPA,meets up with Diane,an old girlfriend from high school,tells Jack her company,which manufactures specialty aviation equipment,needs a new auditor right away.Although Jack has no experience auditing companies in the aviation industry,he agrees to do the audit after quickly quoting a $25,000 fee.Furthermore,Jack agrees to promote the sale of Diane's company's stock to his other clients,in exchange for a commission of 10%.
Outline any violations of the rules of professional conduct perpetrated by Jack.

Accepted Answer

Jack has breached several rules of condu

Question 11

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 12

Client permission is not required to disclose confidential information under all of following situations,EXCEPT:

Accepted Answer

A) When the audit firm is undergoing a CPA mandated practice inspection. 
B) When the audit firm is subpoenaed by a court order. 
C) When the information is shared amongst members of the same firm. 
D) When the audit firm is contacted by the successor auditor. 
A) When the audit firm is undergoing a CPA mandated practice inspection. 
B) When the audit firm is subpoenaed by a court order. 
C) When the information is shared amongst members of the same firm. 
D) When the audit firm is contacted by the successor auditor.

Question 13

A public accountant (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

Question 14

Which of the following statements concerning rules of conduct and ethical principles is FALSE?

Accepted Answer

A) No one ethical principle can provide guidance for developing all professional rules of conduct. 
B) Since ethical behaviour is a personal choice,imposing rules of conduct places too great a restraint on the ability of the professional accountant to make good decisions. 
C) Strict reliance on rules in all situations can produce undesirable effects;ethical principles are needed to guide behaviour in such instances. 
D) Rules of conduct provide specific duties or imperatives,but ethical principles provide overall guidance on proper behaviour. 
A) No one ethical principle can provide guidance for developing all professional rules of conduct. 
B) Since ethical behaviour is a personal choice,imposing rules of conduct places too great a restraint on the ability of the professional accountant to make good decisions. 
C) Strict reliance on rules in all situations can produce undesirable effects;ethical principles are needed to guide behaviour in such instances. 
D) Rules of conduct provide specific duties or imperatives,but ethical principles provide overall guidance on proper behaviour.

Question 15

Which of the following statements regarding communications between predecessor and successor auditors is FALSE?

Accepted Answer

A) Successor auditors are required to make certain inquiries of predecessor auditors when a new client is obtained. 
B) The successor auditor should ask the new client to notify the predecessor auditor of the proposed change. 
C) The successor auditor should then ask the predecessor "whether there are any circumstances that should be taken in account which might influence the potential successors' decision whether to accept the appointment." 
D) When enquiries are made,the predecessor auditor does not need the client's permission to provide the successor auditor with confidential information. 
A) Successor auditors are required to make certain inquiries of predecessor auditors when a new client is obtained. 
B) The successor auditor should ask the new client to notify the predecessor auditor of the proposed change. 
C) The successor auditor should then ask the predecessor "whether there are any circumstances that should be taken in account which might influence the potential successors' decision whether to accept the appointment." 
D) When enquiries are made,the predecessor auditor does not need the client's permission to provide the successor auditor with confidential information.

Question 16

Which of the following statement regarding advertising is FALSE?

Accepted Answer

A) Advertising consists of messages designed to attract business and are broadcast widely (e.g. ,through print,radio,television,billboards,and pop-up ads on various websites)to an undifferentiated audience. 
B) The advertising guidelines basically prohibit false,misleading,and deceptive messages. 
C) Firms commonly obtain new clients through advertising. 
D) Overall,except for some isolated examples of creative advertising by some firms,the profession has not pursued advertising aggressively. 
A) Advertising consists of messages designed to attract business and are broadcast widely (e.g. ,through print,radio,television,billboards,and pop-up ads on various websites)to an undifferentiated audience. 
B) The advertising guidelines basically prohibit false,misleading,and deceptive messages. 
C) Firms commonly obtain new clients through advertising. 
D) Overall,except for some isolated examples of creative advertising by some firms,the profession has not pursued advertising aggressively.

Question 17

Canada Revenue Agency (CRA)has requested the taxes payable working papers of ABC Co.from CPA.CPA 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 18

Which of the following examples demonstrates a likely violation of the Code of Professional Conduct rules on advertising and solicitation?

Accepted Answer

A) Sponsorship of a local music festival,with banners containing the public accounting firm's name posted in visible locations. 
B) Mailing pamphlets to a desired client each day for two weeks,without being asked to do so. 
C) Hosting a free tax seminar for local seniors and providing participants with business cards. 
D) Mailing an existing tax client a pamphlet explaining what additional management advisory and consulting services the firm can provide. 
A) Sponsorship of a local music festival,with banners containing the public accounting firm's name posted in visible locations. 
B) Mailing pamphlets to a desired client each day for two weeks,without being asked to do so. 
C) Hosting a free tax seminar for local seniors and providing participants with business cards. 
D) Mailing an existing tax client a pamphlet explaining what additional management advisory and consulting services the firm can provide.

Question 19

Which of the following statements regarding advertising is FALSE?

Accepted Answer

A) Advertising may not create false or unjustified expectations of favorable results. 
B) Advertising may not imply the ability to influence any court,tribunal,regulatory agency,or similar body or official. 
C) Advertising may contain a fee estimate even if the public accountant (P
A) knows it is likely to be substantially increased. 
D) Advertising may not contain any representation that is likely to cause a reasonable person to misunderstand or be deceived,or that contravenes professional good taste. 
A) Advertising may not create false or unjustified expectations of favorable results. 
B) Advertising may not imply the ability to influence any court,tribunal,regulatory agency,or similar body or official. 
C) Advertising may contain a fee estimate even if the public accountant (P
A) knows it is likely to be substantially increased. 
D) Advertising may not contain any representation that is likely to cause a reasonable person to misunderstand or be deceived,or that contravenes professional good taste.

Question 20

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

Accepted Answer

A) True 
 B)False

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

Under which of the following situations is the payment or receipt of a commission by a public accountant (PA)permissible?

Any complaint against a member must be submitted in writing.

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

As self-regulating bodies,professional institutes have a duty to investigate all written complaints received about their members and students accepted into their programs.

Successor auditors are required to make certain enquiries of predecessor auditors when a new client is obtained.

The duty of confidentiality requires a public accountant (PA)to do which of the following?

Which of the following statements regarding confidentiality principles is FALSE?

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

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.

Client permission is not required to disclose confidential information under all of following situations,EXCEPT:

Which of the following statements concerning rules of conduct and ethical principles is FALSE?

Which of the following statements regarding communications between predecessor and successor auditors is FALSE?

Which of the following statement regarding advertising is FALSE?

Canada Revenue Agency (CRA)has requested the taxes payable working papers of ABC Co.from CPA.CPA should ________.

Which of the following examples demonstrates a likely violation of the Code of Professional Conduct rules on advertising and solicitation?

Which of the following statements regarding advertising is FALSE?

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

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

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

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Exam 18: Professional Rules of Conduct Details and Auditor Responsibilities

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

Under which of the following situations is the payment or receipt of a commission by a public accountant (PA)permissible?

Any complaint against a member must be submitted in writing.

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

As self-regulating bodies,professional institutes have a duty to investigate all written complaints received about their members and students accepted into their programs.

Successor auditors are required to make certain enquiries of predecessor auditors when a new client is obtained.

The duty of confidentiality requires a public accountant (PA)to do which of the following?

Which of the following statements regarding confidentiality principles is FALSE?

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

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.

Client permission is not required to disclose confidential information under all of following situations,EXCEPT:

Which of the following statements concerning rules of conduct and ethical principles is FALSE?

Which of the following statements regarding communications between predecessor and successor auditors is FALSE?

Which of the following statement regarding advertising is FALSE?

Canada Revenue Agency (CRA)has requested the taxes payable working papers of ABC Co.from CPA.CPA should ________.

Which of the following examples demonstrates a likely violation of the Code of Professional Conduct rules on advertising and solicitation?

Which of the following statements regarding advertising is FALSE?

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

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

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