Exam 4: Professional Liability and the Need for Quality Auditor Judgments and Ethical Decisions

The deep pocket theory represents a misunderstanding whereby shareholders mistakenly believe that they are entitled to recover losses on investments for which the auditor provided an unqualified opinion on the financial statements.

(True/False)

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Question 81

Confidentiality is the cornerstone of the auditing profession.

(True/False)

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Question 82

The auditor is permitted to violate the confidentiality rule in providing relevant information to an inquiry by a major shareholder of the client.

(True/False)

4.9/5

(36)

Question 83

Loans between the auditor and the client are permitted in some circumstances.

(True/False)

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Question 84

Understanding contingent fees A.Define the term "contingent fee." B.Explain the circumstances under which a CPA may and may not accept a contingent fee.

(Essay)

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Question 85

The Principles of the AICPA Code of Professional Conduct are aspiration in nature; only the Rules of Conduct and their Interpretations are enforceable against members.

(True/False)

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Question 86

Under Rule 201,what best describes how an AIPCA member should act?

(Multiple Choice)

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Question 87

Showing 81 - 87 of 87

The deep pocket theory represents a misunderstanding whereby shareholders mistakenly believe that they are entitled to recover losses on investments for which the auditor provided an unqualified opinion on the financial statements.

Confidentiality is the cornerstone of the auditing profession.

The auditor is permitted to violate the confidentiality rule in providing relevant information to an inquiry by a major shareholder of the client.

Loans between the auditor and the client are permitted in some circumstances.

Understanding contingent fees A.Define the term "contingent fee." B.Explain the circumstances under which a CPA may and may not accept a contingent fee.

The Principles of the AICPA Code of Professional Conduct are aspiration in nature; only the Rules of Conduct and their Interpretations are enforceable against members.

Under Rule 201,what best describes how an AIPCA member should act?

Auditing: Integral to the Economy

The Risk of Fraud and Mechanisms to Address Fraud: Regulation,corporate Governance,and Audit Quality

Internal Control Over Financial Reporting: Managements Responsibilities and Importance to the External Auditors

Professional Auditing Standards and the Audit Opinion Formulation Process

A Framework for Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, use, impairment, and Disposal

Auditing Debt Obligations and Stockholders Equity Transactions

Activities Required in Completing a Quality Audit

Audit Reports on Financial Statements

Advanced Topics Concerning Complex Auditing Judgments

Other Services Provided by Audit Firms

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