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

When using a general framework for making high-quality professional decisions,the auditor would typically take all of the following steps except which one of the following:

Which of the following describes a situation in which an individual is morally or ethically required to do something that conflicts with his or her immediate self-interest?

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 AICPA.

Independence is not required for which of the following types of services?

The importance of independence Why is "independence" referred to as the cornerstone of auditing?

Which of the following is a purpose of an ethical framework?

An auditor that exercises adequate professional skepticism will be less likely to overlook unusual circumstances,to over-generalize from limited audit evidence,or to use inappropriate assumptions in determining the nature,timing,and extent of audit procedures.

An ethical problem occurs when an individual is morally or ethically required to do something that conflicts with his or her immediate self-interest.

Which of the following represents a situation in which the auditors may disclose client information to outside parties?

An auditor of a public client may perform internal audit outsourcing services for a client because such services may overlap with external audit functions.

Rule 201,dealing with General Standards that are applicable to all CPAs no matter the type of services that are rendered,does not include which factor?

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

Which one of the following is an example of a conflict of interest for a CPA?

The AICPA Principles of Professional Conduct include which of the following?

William Tyler,CPA,may not accept a commission for recommending a product or service to which type of client?

The AICPA's Code of Professional Conduct defines direct ownership as an investment of one percent or more of a client's organization.

The General Standards of Rule 201 are required of all members of the AICPA.They include all of the following except

Engagement fees Jonathan Tubb,CPA,agrees to prepare a 2009 tax return for Don Brogan.Tubb agrees to accept 30 percent of the refund obtained as his fee.Discuss the ethics of this situation using the ethical framework.

According to international auditing standards,professional skepticism includes being alert to all of the following except:

In determining the types of activities,engagements and interactions an auditor should have with a client,the CPA and the audit firm must do which of the following?