Exam 14: Professional Ethics

Susan Small,CPA,has Medium Corporation as an audit client.Medium has asked Small to create and install a new computerized payroll system.Because Small does not have the appropriate level of expertise,she referred Medium to Compusystems,Inc.,a local software consulting company.Small has an arrangement by which Compusystems pays her 10 percent of any fee received from her referrals.Small has disclosed this to her client. Required: This situation involves a possible violation of the AICPA's Code of Professional Conduct.State the rule in question and explain why or why not there is a violation of the code.You need not refer to the rule number but should clearly describe the rule in question.

(Essay)

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Question 81

The SEC independence rules prohibit auditors from providing actuarial services to public company audit clients.

(True/False)

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Question 82

When a CPA knows that a tax client has skimmed cash receipts and not reported the income in the federal income tax return but signs the return as a CPA who prepared the return,the CPA has violated which of the following AICPA Rules of Conduct?

(Multiple Choice)

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Question 83

When the public accounting firm audits FUND-A in a mutual fund complex that has sister funds FUND-B and FUND-C,independence for the audit of FUND-A is not impaired when

(Multiple Choice)

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Question 84

Under AICPA rules,independence will be considered impaired if a member had or was committed to acquire any or ____________ financial interest in the enterprise.

(Short Answer)

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Question 85

Which of the following is true according to Government Auditing Standards?

(Multiple Choice)

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Question 86

If a CPA has violated a rule of Conduct,the AICPA trial board panel does not have the power to

(Multiple Choice)

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Question 87

According to Sarbanes-Oxley,the audit committee must preapprove all audit and nonaudit services.This can be done

(Multiple Choice)

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Question 88

Ensuring that the auditor is independent in appearance is the responsibility of

(Multiple Choice)

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Question 89

Under AICPA rules,it would be a conflict of interest if a CPA is engaged to perform ___________________________ services for a plaintiff in a lawsuit filed against a client.

(Short Answer)

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Question 90

An auditor's independence would not be considered impaired if she or he had

(Multiple Choice)

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Question 91

Which of the following philosophical principles in ethics emphasizes the following rules rather than on the consequences of the decision?

(Multiple Choice)

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Question 92

Which of the following is not one of the ideals expressed in the Principles of Professional Conduct?

(Multiple Choice)

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Question 93

A code of ethics serves as a reference and benchmark for acceptable professional behavior.

(True/False)

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Question 94

The AICPA removed its general prohibition of CPAs taking commissions and contingent fees because

(Multiple Choice)

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Question 95

Rule 102 is applicable to members employed in ___ and .

(Short Answer)

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Question 96

According to the AICPA Code of Conduct,which of the following acts is generally forbidden to CPAs in public practice?

(Multiple Choice)

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Question 97

Which of the following is the responsibility of the Professional Ethics Executive Committee?

(Multiple Choice)

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Question 98

Which of the following is not a restriction placed on audit partners by Sarbanes-Oxley?

(Multiple Choice)

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Question 99

According to the profession's ethical standards,an auditor would be considered independent in which of the following instances?

(Multiple Choice)

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Question 100

Showing 81 - 100 of 124

The SEC independence rules prohibit auditors from providing actuarial services to public company audit clients.

When a CPA knows that a tax client has skimmed cash receipts and not reported the income in the federal income tax return but signs the return as a CPA who prepared the return,the CPA has violated which of the following AICPA Rules of Conduct?

When the public accounting firm audits FUND-A in a mutual fund complex that has sister funds FUND-B and FUND-C,independence for the audit of FUND-A is not impaired when

Under AICPA rules,independence will be considered impaired if a member had or was committed to acquire any or ____________ financial interest in the enterprise.

Which of the following is true according to Government Auditing Standards?

If a CPA has violated a rule of Conduct,the AICPA trial board panel does not have the power to

According to Sarbanes-Oxley,the audit committee must preapprove all audit and nonaudit services.This can be done

Ensuring that the auditor is independent in appearance is the responsibility of

Under AICPA rules,it would be a conflict of interest if a CPA is engaged to perform ___________________________ services for a plaintiff in a lawsuit filed against a client.

An auditor's independence would not be considered impaired if she or he had

Which of the following philosophical principles in ethics emphasizes the following rules rather than on the consequences of the decision?

Which of the following is not one of the ideals expressed in the Principles of Professional Conduct?

A code of ethics serves as a reference and benchmark for acceptable professional behavior.

The AICPA removed its general prohibition of CPAs taking commissions and contingent fees because

Rule 102 is applicable to members employed in ___ and .

According to the AICPA Code of Conduct,which of the following acts is generally forbidden to CPAs in public practice?

Which of the following is the responsibility of the Professional Ethics Executive Committee?

Which of the following is not a restriction placed on audit partners by Sarbanes-Oxley?

According to the profession's ethical standards,an auditor would be considered independent in which of the following instances?

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Legal Liability

Internal Governmental and Fraud Audits

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters

Exam 14: Professional Ethics

The SEC independence rules prohibit auditors from providing actuarial services to public company audit clients.

When a CPA knows that a tax client has skimmed cash receipts and not reported the income in the federal income tax return but signs the return as a CPA who prepared the return,the CPA has violated which of the following AICPA Rules of Conduct?

When the public accounting firm audits FUND-A in a mutual fund complex that has sister funds FUND-B and FUND-C,independence for the audit of FUND-A is not impaired when

Under AICPA rules,independence will be considered impaired if a member had or was committed to acquire any ____________ or ________________________ financial interest in the enterprise.

Which of the following is true according to Government Auditing Standards?

If a CPA has violated a rule of Conduct,the AICPA trial board panel does not have the power to

According to Sarbanes-Oxley,the audit committee must preapprove all audit and nonaudit services.This can be done

Ensuring that the auditor is independent in appearance is the responsibility of

Under AICPA rules,it would be a conflict of interest if a CPA is engaged to perform ___________________________ services for a plaintiff in a lawsuit filed against a client.

An auditor's independence would not be considered impaired if she or he had

Which of the following philosophical principles in ethics emphasizes the following rules rather than on the consequences of the decision?

Which of the following is not one of the ideals expressed in the Principles of Professional Conduct?

A code of ethics serves as a reference and benchmark for acceptable professional behavior.

The AICPA removed its general prohibition of CPAs taking commissions and contingent fees because

Rule 102 is applicable to members employed in ___________________ and ________________.

According to the AICPA Code of Conduct,which of the following acts is generally forbidden to CPAs in public practice?

Which of the following is the responsibility of the Professional Ethics Executive Committee?

Which of the following is not a restriction placed on audit partners by Sarbanes-Oxley?

According to the profession's ethical standards,an auditor would be considered independent in which of the following instances?

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Legal Liability

Internal Governmental and Fraud Audits

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters

Under AICPA rules,independence will be considered impaired if a member had or was committed to acquire any or ____________ financial interest in the enterprise.

Rule 102 is applicable to members employed in ___ and .