Question 1

In the Family Outreach case, Yimei finds three accounts all using the same documentation and amounts. Being skeptical, Yimei should consider doing all but:

Accepted Answer

A)  Report her findings to Kwami, her supervisor 
B)  Talk to the agency's board of directors 
C)  Examine more evidence to support her finding 
D)  Check to see if the accounts were in the prior years' workpapers 
A)  Report her findings to Kwami, her supervisor 
B)  Talk to the agency's board of directors 
C)  Examine more evidence to support her finding 
D)  Check to see if the accounts were in the prior years' workpapers

Question 2

Which rule of professional conduct in the AICPA code does not apply both to internal and external accountants who are CPAs and members of the Institute?

Accepted Answer

A)  Independence 
B)  Integrity 
C)  Objectivity 
D)  Due care 
A)  Independence 
B)  Integrity 
C)  Objectivity 
D)  Due care

Question 3

Which was the ethical concern exists in the PeopleSoft case?

Accepted Answer

A)  Family relationships between PeopleSoft top managers and EY 
B)  Tax services provided for PeopleSoft top management by EY 
C)  Independence in appearance and fact of EY in providing services to PeopleSoft 
D)  Information systems design and installations services provided for PeopleSoft by EY 
A)  Family relationships between PeopleSoft top managers and EY 
B)  Tax services provided for PeopleSoft top management by EY 
C)  Independence in appearance and fact of EY in providing services to PeopleSoft 
D)  Information systems design and installations services provided for PeopleSoft by EY

Question 4

In the Fund of Funds case discussed in this chapter, the external auditors violated which rule of conduct?

Accepted Answer

A)  Due care 
B)  The financial statements were certified as being in conformity with GAAP when that was not the case 
C)  The financial statements were certified as being in conformity with generally accepted auditing standards when that was not the case 
D)  Confidentiality 
A)  Due care 
B)  The financial statements were certified as being in conformity with GAAP when that was not the case 
C)  The financial statements were certified as being in conformity with generally accepted auditing standards when that was not the case 
D)  Confidentiality

Question 5

The ethical issue raised in the Beauda Medical Center case is similar to that in:

Accepted Answer

A)  ESM Government Securities 
B)  PeopleSoft 
C)  Fund of Funds 
D)  Enron 
A)  ESM Government Securities 
B)  PeopleSoft 
C)  Fund of Funds 
D)  Enron

Question 6

The main ethical issue in Healthcare Fraud case is:

Accepted Answer

A)  Maintaining two sets of accounting books. 
B)  Inflating healthcare costs submitted to Medicare. 
C)  Outsourcing operations to a firm known for maximizing expense reimbursements. 
D)  All of these. 
A)  Maintaining two sets of accounting books. 
B)  Inflating healthcare costs submitted to Medicare. 
C)  Outsourcing operations to a firm known for maximizing expense reimbursements. 
D)  All of these.

Question 7

How do the PCAOB rules attempt to strengthen the obligations of a CPA to be independent of clients and perform services objectively?

Accepted Answer

The Public Company Accounting Oversight

Question 8

Integrity is measured in terms of what is right and just. What is a question that a CPA can ask to test decisions?

Accepted Answer

A)  Am I doing what another CPA would do? 
B)  Am I serving the interests of my client? 
C)  Am I protecting my self-interests? 
D)  Have I retained my integrity? 
A)  Am I doing what another CPA would do? 
B)  Am I serving the interests of my client? 
C)  Am I protecting my self-interests? 
D)  Have I retained my integrity?

Question 9

Explain how the Principles of the AICPA Code of Professional Conduct establish standards of behavior for CPAs that are similar to those discussed in chapters 1 and 2.

Accepted Answer

The Principles of the AICPA Code of Prof

Question 10

To whom do the accounting codes of professional conduct (either the state board of public accountancy or AICPA) apply?

Accepted Answer

A)  Those CPAs in public accounting only. 
B)  Those CPAs in industry, government, and education. 
C)  Those CPAs in public accounting, industry, government, and education. 
D)  Those CPAs in public accounting, doing auditing and taxation. 
A)  Those CPAs in public accounting only. 
B)  Those CPAs in industry, government, and education. 
C)  Those CPAs in public accounting, industry, government, and education. 
D)  Those CPAs in public accounting, doing auditing and taxation.

Question 11

Which of the following is a permitted loan to a CPA from an audit client financial institution?

Accepted Answer

A)  Car loan collateralized by the car 
B)  Credit cards with a limit greater than $25,000 
C)  Home mortgage 
D)  Personal loan of less than $10,000 
A)  Car loan collateralized by the car 
B)  Credit cards with a limit greater than $25,000 
C)  Home mortgage 
D)  Personal loan of less than $10,000

Question 12

A unique aspect of the HealthSouth case discussed in the text of this chapter is:

Accepted Answer

A)  The external auditors failed to assess whether the internal controls operated as intended 
B)  Top management certified that the financial statements were accurate 
C)  The external auditors violated the independence standards because they were involved in a business venture with members of top management 
D)  Top management hyped the stock price to increase the value of their stock options 
A)  The external auditors failed to assess whether the internal controls operated as intended 
B)  Top management certified that the financial statements were accurate 
C)  The external auditors violated the independence standards because they were involved in a business venture with members of top management 
D)  Top management hyped the stock price to increase the value of their stock options

Question 13

The principle of ethical behavior in the AICPA Code that asks questions directly related to ethical courage is:

Accepted Answer

A)  Independence 
B)  Objectivity 
C)  Integrity 
D)  Fraud prevention 
A)  Independence 
B)  Objectivity 
C)  Integrity 
D)  Fraud prevention

Question 14

Evaluate the ethics of tax standards in the Statements on Standards for Tax Services with respect to the ethics standards discussed in chapters 1 and 2.

Accepted Answer

The ethics of tax standards in the State

Question 15

Which statement is correct with respect to a CPA's ethical obligation to return client books and records and CPA work papers:

Accepted Answer

A)  Client-provided records in the custody or control of the CPA should be returned to the client at the client's request. 
B)  CPA work papers should be given to the client at the end of each audit. 
C)  CPA work product never has to be turned over to the client. 
D)  All of these 
A)  Client-provided records in the custody or control of the CPA should be returned to the client at the client's request. 
B)  CPA work papers should be given to the client at the end of each audit. 
C)  CPA work product never has to be turned over to the client. 
D)  All of these

Question 16

The International Federation of Accountants (IFAC) research report, Rebuilding Public Confidence in Financial Reporting: An International Perspective, has as its goal which of the following:

Accepted Answer

A)  Creating an international CPA certificate 
B)  Examine ways of restoring the credibility of financial reporting and corporate disclosure from an international perspective 
C)  Establishing a global code of conduct 
D)  All of these 
A)  Creating an international CPA certificate 
B)  Examine ways of restoring the credibility of financial reporting and corporate disclosure from an international perspective 
C)  Establishing a global code of conduct 
D)  All of these

Question 17

To avoid violating independence when engaged in nonattest services for an audit client, a CPA must:

Accepted Answer

A)  Make all management decisions and perform all management decisions 
B)  Evaluate the adequacy and results of the services performed 
C)  Avoid being biased when providing nonattest services for the audit client 
D)  Avoid being pressured by the client when providing nonattest services for the audit client 
A)  Make all management decisions and perform all management decisions 
B)  Evaluate the adequacy and results of the services performed 
C)  Avoid being biased when providing nonattest services for the audit client 
D)  Avoid being pressured by the client when providing nonattest services for the audit client

Question 18

A common requirement/effect of the commissions and contingent fees rule is:

Accepted Answer

A)  A CPA who accepts such a payment always violates independence 
B)  The CPA must disclose the acceptance of such a payment to the client 
C)  A CPA is prohibited from accepting such a form of payment when engaged in attest services for a client 
D)  All of these 
A)  A CPA who accepts such a payment always violates independence 
B)  The CPA must disclose the acceptance of such a payment to the client 
C)  A CPA is prohibited from accepting such a form of payment when engaged in attest services for a client 
D)  All of these

Question 19

In its investigation of ZZZZ Best, the House Subcommittee on Oversight and Investigations looked into:

Accepted Answer

A)  Why the board of directors failed to uncover the fraud at ZZZZ Best 
B)  How the company was able to create 80% or more fictitious revenue 
C)  How the company was able to create cookie jar reserves 
D)  All of these 
A)  Why the board of directors failed to uncover the fraud at ZZZZ Best 
B)  How the company was able to create 80% or more fictitious revenue 
C)  How the company was able to create cookie jar reserves 
D)  All of these

Question 20

Mintz and Morris, both of whom are CPAs, became partners in a tax preparation business in San Marcos, Texas. Which of the following ethics standards must be followed by the two partners?

Accepted Answer

A)  Ethics laws and regulations of the Texas Board of Accountancy 
B)  Ethics rules of the AICPA 
C)  Ethics rules of the Texas Society of CPAs 
D)  All of these 
A)  Ethics laws and regulations of the Texas Board of Accountancy 
B)  Ethics rules of the AICPA 
C)  Ethics rules of the Texas Society of CPAs 
D)  All of these

In the Family Outreach case, Yimei finds three accounts all using the same documentation and amounts. Being skeptical, Yimei should consider doing all but:

Which rule of professional conduct in the AICPA code does not apply both to internal and external accountants who are CPAs and members of the Institute?

Which was the ethical concern exists in the PeopleSoft case?

In the Fund of Funds case discussed in this chapter, the external auditors violated which rule of conduct?

The ethical issue raised in the Beauda Medical Center case is similar to that in:

The main ethical issue in Healthcare Fraud case is:

How do the PCAOB rules attempt to strengthen the obligations of a CPA to be independent of clients and perform services objectively?

Integrity is measured in terms of what is right and just. What is a question that a CPA can ask to test decisions?

Explain how the Principles of the AICPA Code of Professional Conduct establish standards of behavior for CPAs that are similar to those discussed in chapters 1 and 2.

To whom do the accounting codes of professional conduct (either the state board of public accountancy or AICPA) apply?

Which of the following is a permitted loan to a CPA from an audit client financial institution?

A unique aspect of the HealthSouth case discussed in the text of this chapter is:

The principle of ethical behavior in the AICPA Code that asks questions directly related to ethical courage is:

Evaluate the ethics of tax standards in the Statements on Standards for Tax Services with respect to the ethics standards discussed in chapters 1 and 2.

Which statement is correct with respect to a CPA's ethical obligation to return client books and records and CPA work papers:

The International Federation of Accountants (IFAC) research report, Rebuilding Public Confidence in Financial Reporting: An International Perspective, has as its goal which of the following:

To avoid violating independence when engaged in nonattest services for an audit client, a CPA must:

A common requirement/effect of the commissions and contingent fees rule is:

In its investigation of ZZZZ Best, the House Subcommittee on Oversight and Investigations looked into:

Mintz and Morris, both of whom are CPAs, became partners in a tax preparation business in San Marcos, Texas. Which of the following ethics standards must be followed by the two partners?

Ethical Reasoning: Implications for Accounting

Cognitive Processes and Ethical Decision Making in Accounting

Creating an Ethical Organization Environment and Effective Corporate Governance Systems

Fraud in Financial Statements and Auditor Responsibilities

Legal, Regulatory, and Professional Obligations of Auditors

Earnings Management and the Quality of Financial Reporting

International Financial Reporting: Ethics and Corporate Governance Considerations

Filters

Exam 4: Aicpa Code of Professional Conduct

In the Family Outreach case, Yimei finds three accounts all using the same documentation and amounts. Being skeptical, Yimei should consider doing all but:

Which rule of professional conduct in the AICPA code does not apply both to internal and external accountants who are CPAs and members of the Institute?

Which was the ethical concern exists in the PeopleSoft case?

In the Fund of Funds case discussed in this chapter, the external auditors violated which rule of conduct?

The ethical issue raised in the Beauda Medical Center case is similar to that in:

The main ethical issue in Healthcare Fraud case is:

How do the PCAOB rules attempt to strengthen the obligations of a CPA to be independent of clients and perform services objectively?

Integrity is measured in terms of what is right and just. What is a question that a CPA can ask to test decisions?

Explain how the Principles of the AICPA Code of Professional Conduct establish standards of behavior for CPAs that are similar to those discussed in chapters 1 and 2.

To whom do the accounting codes of professional conduct (either the state board of public accountancy or AICPA) apply?

Which of the following is a permitted loan to a CPA from an audit client financial institution?

A unique aspect of the HealthSouth case discussed in the text of this chapter is:

The principle of ethical behavior in the AICPA Code that asks questions directly related to ethical courage is:

Evaluate the ethics of tax standards in the Statements on Standards for Tax Services with respect to the ethics standards discussed in chapters 1 and 2.

Which statement is correct with respect to a CPA's ethical obligation to return client books and records and CPA work papers:

The International Federation of Accountants (IFAC) research report, Rebuilding Public Confidence in Financial Reporting: An International Perspective, has as its goal which of the following:

To avoid violating independence when engaged in nonattest services for an audit client, a CPA must:

A common requirement/effect of the commissions and contingent fees rule is:

In its investigation of ZZZZ Best, the House Subcommittee on Oversight and Investigations looked into:

Mintz and Morris, both of whom are CPAs, became partners in a tax preparation business in San Marcos, Texas. Which of the following ethics standards must be followed by the two partners?

Ethical Reasoning: Implications for Accounting

Cognitive Processes and Ethical Decision Making in Accounting

Creating an Ethical Organization Environment and Effective Corporate Governance Systems

Fraud in Financial Statements and Auditor Responsibilities

Legal, Regulatory, and Professional Obligations of Auditors

Earnings Management and the Quality of Financial Reporting

International Financial Reporting: Ethics and Corporate Governance Considerations

Filters