Exam 4: Aicpa Code of Professional Conduct

Objectivity may be impaired when a CPA prepares a tax return for a client because:

The House Subcommittee on Oversight and Investigations made its recommendations after looking into failures at:

James Doty, the chairman of the PCAOB, in his testimony before Congress on the financial crisis of 2007-2008, admitted that auditors should have been more vigilant-not just at Lehman Brothers, but across the board. Which audit areas did Doty signal out for criticism?

In the HealthSouth case, the auditors failed to meet their ethical and professional obligations because they failed to uncover fraud in which account?

If a client refuses to accept an auditors' report that has been modified, the public accounting firm should withdraw from the engagement and give its reasons in writing to the board of directors except when:

Assume the external auditor of a client entity also served on the client's board of directors. What aspect of independence would be violated?

What is the difference on contingent fees under the PCAOB rules versus the AICPA rules?

In the Lee & Han, LLC case, Barbara Strom should:

The CPA firm that became involved in tax shelter controversies with the IRS was:

CPAs can advertise and solicit clients as long as such practices are:

What ethical rules are violated when a CPA auditing a client provides inside information about the client to a friend?

Which case in the text of the chapter illustrates the danger of a CPA accepting loans from an audit client?

CPAs should always adhere to the rules of conduct of the

What steps should an auditor take when she suspects illegal acts have occurred at a client entity?

What are the major threats to independence addressed by the AICPA Conceptual Framework for Independence Standards and how can CPAs/CPA firms mitigate such threats?

Which is not a permitted form of organization for a CPA practice?

Steve Morris, CPA, performs audits for nonpublic clients. Describe the independence obligations of Steve that apply to the performance of professional services for audit clients.

Which of the following relationships do not impair CPA-auditor independence?

A CPA who informs management of a material misstatement in the financial statements can go to the SEC with his/her concerns if:

The requirement that there should be reasonable support for a tax return position before a CPA recommends it to a client most directly aligns with which tax standard: