Exam 3: Auditors Ethical and Legal Responsibilities

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Guy,CPA,is the auditor in-charge of the Big Pulp and Paper Company (BPPC).During the audit,he discovers BPPC's safety equipment has broken down,resulting in deadly chemicals pouring into the only water source of a small village.Which of the following statements best reflects a Kantian analysis of Guy's ethical dilemma?

(Multiple Choice)

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Question 21

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

(Multiple Choice)

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Question 22

Tom,a PA,is approached by Acme Pest Control Inc.to perform the audit of their financial statements.The founder and CEO of Acme Pest Control is Jerry,how is an old high classmate and close personal friend of Tom.Consequently,before Tom accepts to perform the audit of Acme,he will need to be especially mindful of which threat to his independence?

(Multiple Choice)

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Question 23

What is professional skepticism?

(Essay)

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Question 24

Explain the difference among integrity,independence,and objectivity.

(Essay)

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Question 25

According to the profession's rules of conduct,an auditor would be considered independent in which of the following instances?

(Multiple Choice)

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Question 26

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

(Multiple Choice)

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Question 27

Critical thinking is essential to the proper comprehension of auditing standards and the development of new standards in the future.

(True/False)

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Question 28

The "CPA Code of Professional Conduct" need only be observed by members and firms engaged in the practice of public accounting

(True/False)

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Question 29

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 ________.

(Multiple Choice)

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Question 30

In financial reporting,the going-concern assumption.Is considered a negative proposition,because auditors traditionally assumed that this assertion is true unless there is evidence to the contrary.

(True/False)

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Question 31

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

(Multiple Choice)

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Question 32

Explain what a Limited Liability Partnership (LLP)is and why it is beneficial to public accountants.

(Essay)

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Question 33

The familiarity threat refers to ________.

(Multiple Choice)

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Question 34

The Kantian principle is a philosophical principle that places emphasis on which of the factors when deciding on the right course of action?

(Multiple Choice)

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Question 35

That a legal duty arises when there is a contractual agreement with the client is called ________.

(Multiple Choice)

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Question 36

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

(Multiple Choice)

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Question 37

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

(True/False)

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Question 38

Legal liabilities of professional accountants arise only from lawsuits brought on the basis of the law of contracts.

(True/False)

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Question 39

If a professional accountant is convicted of a criminal offence or fraud,he or she is usually thrown out of the profession.

(True/False)

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Question 40

Showing 21 - 40 of 57

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

What is professional skepticism?

Explain the difference among integrity,independence,and objectivity.

According to the profession's rules of conduct,an auditor would be considered independent in which of the following instances?

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

Critical thinking is essential to the proper comprehension of auditing standards and the development of new standards in the future.

The "CPA Code of Professional Conduct" need only be observed by members and firms engaged in the practice of public accounting

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 financial reporting,the going-concern assumption.Is considered a negative proposition,because auditors traditionally assumed that this assertion is true unless there is evidence to the contrary.

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

Explain what a Limited Liability Partnership (LLP)is and why it is beneficial to public accountants.

The familiarity threat refers to ________.

The Kantian principle is a philosophical principle that places emphasis on which of the factors when deciding on the right course of action?

That a legal duty arises when there is a contractual agreement with the client is called ________.

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

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

Legal liabilities of professional accountants arise only from lawsuits brought on the basis of the law of contracts.

If a professional accountant is convicted of a criminal offence or fraud,he or she is usually thrown out of the profession.

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 the Audit Report

Other Public Accounting Services and Reportsreviews and Compilations

Professional Rules of Conduct Details and Auditor Responsibilities

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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