Exam 6: Professional Accounting in the Public Interest

The external review of an audit firm's quality control system is an example of:

According to Kohlberg's stages of moral reasoning, which of the following is the first stage at which a professional accountant should be motivated?

According to Kohlberg, at this stage of moral reasoning, fear of punishment and authorities is a motive for doing right.

A professional accounting firm has several audit and tax clients; however, a single client represents 40% of the firm's revenue. This situation could result in the following threat to professional independence.

Adopting the following measures would reduce the expectations gap and lessen public misunderstanding of the auditor's role.

A professional accountant is auditing client A and providing consulting services to client B. Both clients are in the same industry. If the professional accountant uses specific information from client A's audit to prepare a business plan for client B, he will be violating the following fundamental principle.

If a professional accountant is auditing a public company and she receives company shares as payment for her audit services, she will be violating the following fundamental principle.

The following value is not necessary for an accounting professional.

Professionalism is essential for professional accountants to protect the public interest. Which of the following are the most important aspects of professionalism?

This organization can set auditing standards in the U.S.

The recommendation of the appointment and review of external auditors by the audit committee is an example of:

New NOCLAR standards have been introduced in some jurisdictions requiring professional accountants (PAs)to report internally if a client or employer is not in compliance with laws or regulations on a significant matter, and if the matter is not remediated, to report externally because some PAs were witnessing noncompliance but not speaking up because:

Which of the following is not a fundamental principle of codes of conduct for professional accountants?

Using partners who do not report to audit partners for the provision of nonassuranc services to an assurance client would be an example of:

Professional accountants, in their fiduciary role, owe primary loyalty to:

This organization issues auditing standards, carries out inspections of public accounting firms auditing U.S. public clients, and imposes sanctions when applicable.

The most recent International Code of Ethics for Professional Accountants mandates that professional accountants must protect the public interest because professionals serving the public:

The following elements are essential features of a profession.

Maintaining the confidentiality of client or employer matters is considered essential for a professional accountant (PA)in order that clients and employers:

A new audit client has been taken on by a professional accountant's firm. The fee for this client's audit engagement is significantly lower than that charged by the previous accountants. This situation could result in the following threat to professional independence.