Exam 4: Professional Liability, Auditor Judgment Frameworks, and Professional Responsibilities

Explore all topics

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)

4.7/5

(44)

Question 81

Contingent fees are prohibited for tax professionals when preparing tax returns for clients

(True/False)

4.9/5

(23)

Question 82

Under Common Law, liability concepts are developed through court decisions based on negligence, gross negligence, or fraud.

(True/False)

4.8/5

(33)

Question 83

The auditor is normally not permitted to divulge confidential information obtained from a client. Which of the following situations would be a violation of this standard?

(Multiple Choice)

4.8/5

(38)

Question 84

Auditors are permitted to perform for a contingent fee an audit of the financial statements if the audit committee approves the agreement in advance of the services being provided.

(True/False)

4.7/5

(29)

Question 85

Utilitarian theory is an approach for addressing ethical problems by identifying a hierarchy of rights that should be considered in solving ethical dilemmas.

(True/False)

4.9/5

(35)

Question 86

According to Rights Theory, the highest-order rights include rights granted by the government, such as civil rights, legal rights, rights to own property, and license privileges.

(True/False)

4.8/5

(45)

Question 87

A covered member's investment in a mutual fund which owns stock in a firm being audited by the covered member is a direct financial interest resulting in the impairment of independence.

(True/False)

4.7/5

(41)

Question 88

Showing 81 - 88 of 88

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.

Contingent fees are prohibited for tax professionals when preparing tax returns for clients

Under Common Law, liability concepts are developed through court decisions based on negligence, gross negligence, or fraud.

The auditor is normally not permitted to divulge confidential information obtained from a client. Which of the following situations would be a violation of this standard?

Auditors are permitted to perform for a contingent fee an audit of the financial statements if the audit committee approves the agreement in advance of the services being provided.

Utilitarian theory is an approach for addressing ethical problems by identifying a hierarchy of rights that should be considered in solving ethical dilemmas.

According to Rights Theory, the highest-order rights include rights granted by the government, such as civil rights, legal rights, rights to own property, and license privileges.

A covered member's investment in a mutual fund which owns stock in a firm being audited by the covered member is a direct financial interest resulting in the impairment of independence.

Auditing: Integral to the Economy

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Internal Control Over Financial Reporting: Responsibilities of Management and 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

Filters