Question 1

Only covered members as defined by the APES 110 are required to comply with its independence rules.

Accepted Answer

A) True 
 B)False  True

Question 2

Under the APES 110 definition, who among the following would not be considered a covered member?

Accepted Answer

A)  an individual on the attest engagement team 
B)  an individual in a the audit firm able to influence the attest engagement 
C)  a partner in the office of the lead engagement partner 
D)  all would be considered covered members 
A)  an individual on the attest engagement team 
B)  an individual in a the audit firm able to influence the attest engagement 
C)  a partner in the office of the lead engagement partner 
D)  all would be considered covered members D

Question 3

Professional competence is best demonstrated by:

Accepted Answer

A)  sufficient collegiate and continuing professional education 
B)  accepting only those engagements that the firm's members can competently perform 
C)  adequate planning and supervision of professional performance 
D)  being straightforward and honest 
A)  sufficient collegiate and continuing professional education 
B)  accepting only those engagements that the firm's members can competently perform 
C)  adequate planning and supervision of professional performance 
D)  being straightforward and honest B

Question 4

Under the APES 110 Code of Ethics for Professional Accountants, there are six primary categories of threats to independence.

Accepted Answer

A) True 
 B)False

Question 5

A covered member under the APES 110's rules includes individuals on the engagement team, any individual in a position to influence the engagement team and all professional staff in the office of the engagement.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following principles would a major threat to the auditor's independence?

Accepted Answer

A)  compensation schemes to attract and retain clients 
B)  the engagement partner conducting the same audit for two years 
C)  a successful high tender bid 
D)  separating consulting activities from audit activities 
A)  compensation schemes to attract and retain clients 
B)  the engagement partner conducting the same audit for two years 
C)  a successful high tender bid 
D)  separating consulting activities from audit activities

Question 7

Which of the following is not an aspect of the requirements of the professional bodies for membership?

Accepted Answer

A)  A member must not take on an engagement that is beyond the member's professional competence. 
B)  A member must exercise duties prudently and professionally. 
C)  A member must adequately plan and supervise the performance of professional services. 
D)  A member firm must not advertise services to competing clients. 
A)  A member must not take on an engagement that is beyond the member's professional competence. 
B)  A member must exercise duties prudently and professionally. 
C)  A member must adequately plan and supervise the performance of professional services. 
D)  A member firm must not advertise services to competing clients.

Question 8

Which of the following is included in the APES 110 Code of Ethics for Professional Accountants?

Accepted Answer

A)  principles, rules of conduct and rulings 
B)  rules of conduct, interpretations and principles 
C)  principles, rules of Conduct and rulings 
D)  principles and examples 
A)  principles, rules of conduct and rulings 
B)  rules of conduct, interpretations and principles 
C)  principles, rules of Conduct and rulings 
D)  principles and examples

Question 9

After CLERP 9, audit firms are no longer able to practise as a sole proprietorship.

Accepted Answer

A) True 
 B)False

Question 10

The CLERP 9 Act requires management to pre-approve any non-audit service by the auditor, including tax services not specifically prohibited.

Accepted Answer

A) True 
 B)False

Question 11

The APES 110 Code of Ethics for Professional Accountants governs the performance of members of the three professional accounting bodies in carrying out their public responsibilities.

Accepted Answer

A) True 
 B)False

Question 12

If a member owns several shares of stock of a company during the first few months of the fiscal year under audit and then sells the shares before accepting the engagement, the firm does not violate the independence rules of the APES 110.

Accepted Answer

A) True 
 B)False

Question 13

To meet the objective of independence in appearance, the auditor must be perceived by knowledgeable users of financial reports to be independent.

Accepted Answer

A) True 
 B)False

Question 14

Non-audit services prohibited or permitted under Sarbanes-Oxley
Harry Rawlins Public Accountants are engaged by DK, a public company to perform the year-end audit.
A. Discuss the types of services that Harry Rawlins will not be able to perform for DK under APES 110 Code of Ethics for Professional Accountants.
B. What types of services may Harry Rawlins perform for DK under APES 110 Code of Ethics for Professional Accountants?

Accepted Answer

A. APES110 requires the auditor to refra

Question 15

The fundamental principle, integrity, requires a professional accountant to be straightforward and honest in performing professional services.

Accepted Answer

A) True 
 B)False

Question 16

A public accounting firm can remain as auditor when a key partner joins a public interest entity (PIE) audit client as a director.

Accepted Answer

A) True 
 B)False

Question 17

Unless the value is trivial and inconsequential, gifts or hospitality cannot be accepted from an audit client.

Accepted Answer

A) True 
 B)False

Question 18

The APES 110 independence principle is violated by the auditor having any direct or material indirect ownership interest in a client.

Accepted Answer

A) True 
 B)False

Question 19

According to APES 110 all of the following are threats to independence except:

Accepted Answer

A)  the evaluation of results performed by another individual within the audit firm 
B)  long-standing relationships with management that could be used as a basis to trust the information they provide 
C)  a material financial interest between the engagement partner and the client 
D)  the purchase of goods and services from the client in the normal course of business 
A)  the evaluation of results performed by another individual within the audit firm 
B)  long-standing relationships with management that could be used as a basis to trust the information they provide 
C)  a material financial interest between the engagement partner and the client 
D)  the purchase of goods and services from the client in the normal course of business

Question 20

All members of the professional accounting bodies are required to adhere to fundamental principles. They include all of the following except:

Accepted Answer

A)  professional competency and due care 
B)  integrity and subjectivity 
C)  confidentiality 
D)  professional behaviour 
A)  professional competency and due care 
B)  integrity and subjectivity 
C)  confidentiality 
D)  professional behaviour

Only covered members as defined by the APES 110 are required to comply with its independence rules.

Under the APES 110 definition, who among the following would not be considered a covered member?

Professional competence is best demonstrated by:

Under the APES 110 Code of Ethics for Professional Accountants, there are six primary categories of threats to independence.

A covered member under the APES 110's rules includes individuals on the engagement team, any individual in a position to influence the engagement team and all professional staff in the office of the engagement.

Which of the following principles would a major threat to the auditor's independence?

Which of the following is not an aspect of the requirements of the professional bodies for membership?

Which of the following is included in the APES 110 Code of Ethics for Professional Accountants?

After CLERP 9, audit firms are no longer able to practise as a sole proprietorship.

The CLERP 9 Act requires management to pre-approve any non-audit service by the auditor, including tax services not specifically prohibited.

The APES 110 Code of Ethics for Professional Accountants governs the performance of members of the three professional accounting bodies in carrying out their public responsibilities.

If a member owns several shares of stock of a company during the first few months of the fiscal year under audit and then sells the shares before accepting the engagement, the firm does not violate the independence rules of the APES 110.

To meet the objective of independence in appearance, the auditor must be perceived by knowledgeable users of financial reports to be independent.

The fundamental principle, integrity, requires a professional accountant to be straightforward and honest in performing professional services.

A public accounting firm can remain as auditor when a key partner joins a public interest entity (PIE) audit client as a director.

Unless the value is trivial and inconsequential, gifts or hospitality cannot be accepted from an audit client.

The APES 110 independence principle is violated by the auditor having any direct or material indirect ownership interest in a client.

According to APES 110 all of the following are threats to independence except:

All members of the professional accounting bodies are required to adhere to fundamental principles. They include all of the following except:

Assurance and Auditing: Integral to the Economy

Corporate Governance and Audits

Professional Liabilit

Audit Risk, Business Risk, and Audit Planning

Internal Control Over Financial Reporting

Audit Evidence: A Framework

Tests of Control and Substantive Test Implications

Tools to Gather Audit Evidence

Auditing for Fraud

Auditing Revenue, Related Accounts, Audit of Acquisition and Payment Cycle and Inventory

Audit of Cash and Other Liquid Assets

Audit of Long-Lived Assets and Related Expense Accounts

Audit of Long-Term Liabilities, Equity, Acquisitions and Related-Entity Transactions

Completing the Audit or Review

Audit, Review and Other Reports

Advanced Topics Concerning Complex Auditing Judgements

Filters

Exam 3: Judgemental and Ethical Decision-Making Frameworks and Associated Professional Standards

Only covered members as defined by the APES 110 are required to comply with its independence rules.

Under the APES 110 definition, who among the following would not be considered a covered member?

Professional competence is best demonstrated by:

Under the APES 110 Code of Ethics for Professional Accountants, there are six primary categories of threats to independence.

A covered member under the APES 110's rules includes individuals on the engagement team, any individual in a position to influence the engagement team and all professional staff in the office of the engagement.

Which of the following principles would a major threat to the auditor's independence?

Which of the following is not an aspect of the requirements of the professional bodies for membership?

Which of the following is included in the APES 110 Code of Ethics for Professional Accountants?

After CLERP 9, audit firms are no longer able to practise as a sole proprietorship.

The CLERP 9 Act requires management to pre-approve any non-audit service by the auditor, including tax services not specifically prohibited.

The APES 110 Code of Ethics for Professional Accountants governs the performance of members of the three professional accounting bodies in carrying out their public responsibilities.

If a member owns several shares of stock of a company during the first few months of the fiscal year under audit and then sells the shares before accepting the engagement, the firm does not violate the independence rules of the APES 110.

To meet the objective of independence in appearance, the auditor must be perceived by knowledgeable users of financial reports to be independent.

The fundamental principle, integrity, requires a professional accountant to be straightforward and honest in performing professional services.

A public accounting firm can remain as auditor when a key partner joins a public interest entity (PIE) audit client as a director.

Unless the value is trivial and inconsequential, gifts or hospitality cannot be accepted from an audit client.

The APES 110 independence principle is violated by the auditor having any direct or material indirect ownership interest in a client.

According to APES 110 all of the following are threats to independence except:

All members of the professional accounting bodies are required to adhere to fundamental principles. They include all of the following except:

Assurance and Auditing: Integral to the Economy

Corporate Governance and Audits

Professional Liabilit

Audit Risk, Business Risk, and Audit Planning

Internal Control Over Financial Reporting

Audit Evidence: A Framework

Tests of Control and Substantive Test Implications

Tools to Gather Audit Evidence

Auditing for Fraud

Auditing Revenue, Related Accounts, Audit of Acquisition and Payment Cycle and Inventory

Audit of Cash and Other Liquid Assets

Audit of Long-Lived Assets and Related Expense Accounts

Audit of Long-Term Liabilities, Equity, Acquisitions and Related-Entity Transactions

Completing the Audit or Review

Audit, Review and Other Reports

Advanced Topics Concerning Complex Auditing Judgements

Filters