Question 1

An auditor's responsibility to society can be divided into which three categories?

Accepted Answer

A) Moral,professional,and fiscal. 
B) Moral,professional,and legal. 
C) Fiduciary,professional,and legal. 
D) Moral,spiritual,and legal 
A) Moral,professional,and fiscal. 
B) Moral,professional,and legal. 
C) Fiduciary,professional,and legal. 
D) Moral,spiritual,and legal

Question 2

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

Accepted Answer

A) must be independent in fact and in appearance in order to maintain credibility 
B) must not have a direct financial interest or material indirect interest in a client 
C) must have a license to practice as a public accountant 
D) must not take on as an audit client a company owned by a member of his or her immediate family 
A) must be independent in fact and in appearance in order to maintain credibility 
B) must not have a direct financial interest or material indirect interest in a client 
C) must have a license to practice as a public accountant 
D) must not take on as an audit client a company owned by a member of his or her immediate family

Question 3

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

Accepted Answer

A) Government,who initiates the legal action on behalf of society 
B) defendant 
C) plaintiff 
D) jury 
A) Government,who initiates the legal action on behalf of society 
B) defendant 
C) plaintiff 
D) jury

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Rules of professional conduct provide some direct solutions to specific,profession-related problems that may not be easily derived from general theories of ethics.

Accepted Answer

A) True 
 B)False

Question 6

What is a critical thinking framework and why is it important?

Accepted Answer

A critical thinking framework is a set o

Question 7

Codes of Professional Conduct " are organized hierarchically from general principles,to rules,then to specific interpretations of rules.The general principles are considered ideal standards and the rule and interpretations are considered to be minimum standards.

Accepted Answer

A) True 
 B)False

Question 8

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 9

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

Accepted Answer

A) faulty implementation of audit procedures 
B) client fraud 
C) misinterpretation of accounting principles 
D) fraud by the auditor 
A) faulty implementation of audit procedures 
B) client fraud 
C) misinterpretation of accounting principles 
D) fraud by the auditor

Question 10

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

Accepted Answer

The fundamental statements of accepted c

Question 11

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

Accepted Answer

A) lack of independence 
B) negligence 
C) lack of objectivity 
D) misconduct 
A) lack of independence 
B) negligence 
C) lack of objectivity 
D) misconduct

Question 12

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)________.

Accepted Answer

A) management representation letter 
B) compliance letter 
C) reliance letter 
D) engagement letter 
A) management representation letter 
B) compliance letter 
C) reliance letter 
D) engagement letter

Question 13

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

Accepted Answer

A) Imperative principle. 
B) Utilitarianism principle. 
C) Generalization principle. 
D) Moral principle. 
A) Imperative principle. 
B) Utilitarianism principle. 
C) Generalization principle. 
D) Moral principle.

Question 14

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 as a mean

Question 15

If a party is found to be partially liable and thus only responsible for paying part of the damages relative to their share of the blame,this is known as ________.

Accepted Answer

A) due care 
B) breaking even 
C) proportionate liability 
D) a tort 
A) due care 
B) breaking even 
C) proportionate liability 
D) a tort

Question 16

Distinguish between a business failure and an audit failure.

Accepted Answer

A business failure occurs when an entity

Question 17

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.

An auditor's responsibility to society can be divided into which three categories?

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

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

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

Rules of professional conduct provide some direct solutions to specific,profession-related problems that may not be easily derived from general theories of ethics.

What is a critical thinking framework and why is it important?

Codes of Professional Conduct " are organized hierarchically from general principles,to rules,then to specific interpretations of rules.The general principles are considered ideal standards and the rule and interpretations are considered to be minimum standards.

The goal of the critical-thinking framework reflects ________.

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

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

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

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)________.

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

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

If a party is found to be partially liable and thus only responsible for paying part of the damages relative to their share of the blame,this is known as ________.

Distinguish between a business failure and an audit failure.

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

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

Filters

Exam 3: Auditors Ethical and Legal Responsibilities

An auditor's responsibility to society can be divided into which three categories?

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

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

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

Rules of professional conduct provide some direct solutions to specific,profession-related problems that may not be easily derived from general theories of ethics.

What is a critical thinking framework and why is it important?

Codes of Professional Conduct " are organized hierarchically from general principles,to rules,then to specific interpretations of rules.The general principles are considered ideal standards and the rule and interpretations are considered to be minimum standards.

The goal of the critical-thinking framework reflects ________.

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

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

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

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)________.

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

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

If a party is found to be partially liable and thus only responsible for paying part of the damages relative to their share of the blame,this is known as ________.

Distinguish between a business failure and an audit failure.

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

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

Filters