Question 1

In the Gee Wiz case, the main ethical issue was:

Accepted Answer

A)  Independence of David in providing tax services to an audit client 
B)  Confidentiality in disclosing sensitive information about a client of the CPA firm 
C)  Integrity in providing tax services to an audit client through her own entity 
D)  Whistleblowing on a client 
A)  Independence of David in providing tax services to an audit client 
B)  Confidentiality in disclosing sensitive information about a client of the CPA firm 
C)  Integrity in providing tax services to an audit client through her own entity 
D)  Whistleblowing on a client

Question 2

Which of the following is not part of standards for the quality of work?

Accepted Answer

A)  Planning and supervision 
B)  Professional competence 
C)  Professional data 
D)  Professional care 
A)  Planning and supervision 
B)  Professional competence 
C)  Professional data 
D)  Professional care

Question 3

Each of the following were themes of the investigations of the accounting profession during the 1970s and 1980s except for:

Accepted Answer

A)  Whether low-balling to obtain audits impairs independence 
B)  Whether nonaudit services impair auditor independence 
C)  The need for a report on internal controls 
D)  The importance of developing techniques to prevent and detect fraud 
A)  Whether low-balling to obtain audits impairs independence 
B)  Whether nonaudit services impair auditor independence 
C)  The need for a report on internal controls 
D)  The importance of developing techniques to prevent and detect fraud

Question 4

Why don't auditors prepare financial statements, as well as audit them?

Accepted Answer

A)  It would take away a job from the controller of the company. 
B)  It would not eliminate errors in the financial statements. 
C)  It would be a conflict of interest and violates ethical standards. 
D)  It would streamline the process and be effective. 
A)  It would take away a job from the controller of the company. 
B)  It would not eliminate errors in the financial statements. 
C)  It would be a conflict of interest and violates ethical standards. 
D)  It would streamline the process and be effective.

Question 5

Each of the following is a safeguard that helps to mitigate threats to independence except for:

Accepted Answer

A)  Safeguards created by the profession, legislation, or regulation 
B)  Safeguards implemented by the attest client, such as a tone at the top 
C)  Safeguards developed to ensure independence when performing nonattest services 
D)  Safeguards implemented by the firm, including policies and procedures to implement regulatory requirements 
A)  Safeguards created by the profession, legislation, or regulation 
B)  Safeguards implemented by the attest client, such as a tone at the top 
C)  Safeguards developed to ensure independence when performing nonattest services 
D)  Safeguards implemented by the firm, including policies and procedures to implement regulatory requirements

Question 6

The committee that first recommended that the profession institute a voluntary program for peer review was:

Accepted Answer

A)  Metcalf committee 
B)  Cohen committee 
C)  The House Subcommittee on Oversight and Investigations 
D)  Mintz and Morris committee 
A)  Metcalf committee 
B)  Cohen committee 
C)  The House Subcommittee on Oversight and Investigations 
D)  Mintz and Morris committee

Question 7

The accounting issues at failed savings and loan institutions included:

Accepted Answer

A)  The failure to provide adequate allowances for loan losses 
B)  The failure to disclose dubious deals between the S&Ls and some of its major customers 
C)  The existence of inadequate controls to prevent inadequate allowances and control for dubious deals 
D)  All of these 
A)  The failure to provide adequate allowances for loan losses 
B)  The failure to disclose dubious deals between the S&Ls and some of its major customers 
C)  The existence of inadequate controls to prevent inadequate allowances and control for dubious deals 
D)  All of these

Question 8

The confidentiality standard in the AICPA code provides for exceptions to the rule in:

Accepted Answer

A)  In response to a validly issued court summons 
B)  To provide information to the CPA's peer reviewers 
C)  To defend oneself in an ethics investigation 
D)  All of these 
A)  In response to a validly issued court summons 
B)  To provide information to the CPA's peer reviewers 
C)  To defend oneself in an ethics investigation 
D)  All of these

Question 9

What are the similarities and differences in the application of the rules of professional conduct in the AICPA with respect to internal accountants who are CPAs and CPA-external auditors?

Accepted Answer

The American Institute of Certified Publ

Question 10

Under what circumstances do you think it would be acceptable for a CPA to blow the whistle on financial wrongdoing by a client? What steps should the CPA take before carrying through with the whistle-blowing action?

Accepted Answer

As a CPA, it would be acceptable to blow

Question 11

A CPA can accept a contingent fee in providing tax services for an attest client if:

Accepted Answer

A)  The CPA discloses this fact to the tax client 
B)  The CPA receives the permission of the client to accept such a form of payment 
C)  The CPA's tax services will be reviewed by a taxing authority 
D)  All of these 
A)  The CPA discloses this fact to the tax client 
B)  The CPA receives the permission of the client to accept such a form of payment 
C)  The CPA's tax services will be reviewed by a taxing authority 
D)  All of these

Question 12

The ethics rules that applies solely to those who conduct an audit of a client entity is:

Accepted Answer

A)  Independence 
B)  Objectivity 
C)  Integrity 
D)  All of these 
A)  Independence 
B)  Objectivity 
C)  Integrity 
D)  All of these

Question 13

Each of the following is an outright restriction on providing nonattest services for an attest client except for:

Accepted Answer

A)  Tax services 
B)  Financial information systems design and implementation 
C)  Appraisal or valuation services 
D)  Internal audit outsourcing services 
A)  Tax services 
B)  Financial information systems design and implementation 
C)  Appraisal or valuation services 
D)  Internal audit outsourcing services

Question 14

Describe the steps to be taken by a staff accountant who has been told by his/her supervisor to accelerate the recording of revenue into a period earlier than which it should be recognized under GAAP.

Accepted Answer

As a staff accountant, it is important t

Question 15

One concern in the Armadillo Foods case in the text of the chapter is:

Accepted Answer

A)  The failure of internal controls 
B)  Pressure to go along with the misappropriation of assets 
C)  The failure of the external auditors to catch fraud 
D)  Pressure to meet financial analysts' earnings estimates 
A)  The failure of internal controls 
B)  Pressure to go along with the misappropriation of assets 
C)  The failure of the external auditors to catch fraud 
D)  Pressure to meet financial analysts' earnings estimates

Question 16

The conceptual framework for the AICPA Independence standards can best be characterized as:

Accepted Answer

A)  A model to prevent fraud from occurring 
B)  An approach to identify threats to independence 
C)  An approach to identify fraud risks 
D)  A model to assist controllers in dealing with differences of opinion with top management on accounting issues 
A)  A model to prevent fraud from occurring 
B)  An approach to identify threats to independence 
C)  An approach to identify fraud risks 
D)  A model to assist controllers in dealing with differences of opinion with top management on accounting issues

Question 17

What is the maximum amount of time an audit manager or partner may spend on nonattest services for an attest client?

Accepted Answer

A)  20 hours 
B)  15 hours 
C)  10 hours 
D)  8 hours 
A)  20 hours 
B)  15 hours 
C)  10 hours 
D)  8 hours

Question 18

The question that arises in the First Community Church case is whether:

Accepted Answer

A)  The financial statements have been materially misstated 
B)  There has been a misappropriation of assets 
C)  The auditors lacked independence 
D)  All of these 
A)  The financial statements have been materially misstated 
B)  There has been a misappropriation of assets 
C)  The auditors lacked independence 
D)  All of these

Question 19

During the investigations by the House Subcommittee on Oversight and Investigations, a question that was raised was:

Accepted Answer

A)  Why was fraud allowed to occur at some many companies 
B)  Where was the board of directors in all these frauds 
C)  Where were the auditors 
D)  Why did the internal controls fail in some many frauds 
A)  Why was fraud allowed to occur at some many companies 
B)  Where was the board of directors in all these frauds 
C)  Where were the auditors 
D)  Why did the internal controls fail in some many frauds

Question 20

Sarbanes-Oxley Act (SOX) sets new standards for governance that will ultimately impact on which of the following?

Accepted Answer

A)  Foreign companies listed on US exchanges only 
B)  SEC registrant companies, including foreign companies listed on US 
C)  NYSE listing companies 
D)  NASDAQ listing companies 
A)  Foreign companies listed on US exchanges only 
B)  SEC registrant companies, including foreign companies listed on US 
C)  NYSE listing companies 
D)  NASDAQ listing companies

In the Gee Wiz case, the main ethical issue was:

Which of the following is not part of standards for the quality of work?

Each of the following were themes of the investigations of the accounting profession during the 1970s and 1980s except for:

Why don't auditors prepare financial statements, as well as audit them?

Each of the following is a safeguard that helps to mitigate threats to independence except for:

The committee that first recommended that the profession institute a voluntary program for peer review was:

The accounting issues at failed savings and loan institutions included:

The confidentiality standard in the AICPA code provides for exceptions to the rule in:

What are the similarities and differences in the application of the rules of professional conduct in the AICPA with respect to internal accountants who are CPAs and CPA-external auditors?

Under what circumstances do you think it would be acceptable for a CPA to blow the whistle on financial wrongdoing by a client? What steps should the CPA take before carrying through with the whistle-blowing action?

A CPA can accept a contingent fee in providing tax services for an attest client if:

The ethics rules that applies solely to those who conduct an audit of a client entity is:

Each of the following is an outright restriction on providing nonattest services for an attest client except for:

Describe the steps to be taken by a staff accountant who has been told by his/her supervisor to accelerate the recording of revenue into a period earlier than which it should be recognized under GAAP.

One concern in the Armadillo Foods case in the text of the chapter is:

The conceptual framework for the AICPA Independence standards can best be characterized as:

What is the maximum amount of time an audit manager or partner may spend on nonattest services for an attest client?

The question that arises in the First Community Church case is whether:

During the investigations by the House Subcommittee on Oversight and Investigations, a question that was raised was:

Sarbanes-Oxley Act (SOX) sets new standards for governance that will ultimately impact on which of the following?

Ethical Reasoning: Implications for Accounting

Cognitive Processes and Ethical Decision Making in Accounting

Creating an Ethical Organization Environment and Effective Corporate Governance Systems

Fraud in Financial Statements and Auditor Responsibilities

Legal, Regulatory, and Professional Obligations of Auditors

Earnings Management and the Quality of Financial Reporting

International Financial Reporting: Ethics and Corporate Governance Considerations

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Exam 4: Aicpa Code of Professional Conduct

In the Gee Wiz case, the main ethical issue was:

Which of the following is not part of standards for the quality of work?

Each of the following were themes of the investigations of the accounting profession during the 1970s and 1980s except for:

Why don't auditors prepare financial statements, as well as audit them?

Each of the following is a safeguard that helps to mitigate threats to independence except for:

The committee that first recommended that the profession institute a voluntary program for peer review was:

The accounting issues at failed savings and loan institutions included:

The confidentiality standard in the AICPA code provides for exceptions to the rule in:

What are the similarities and differences in the application of the rules of professional conduct in the AICPA with respect to internal accountants who are CPAs and CPA-external auditors?

Under what circumstances do you think it would be acceptable for a CPA to blow the whistle on financial wrongdoing by a client? What steps should the CPA take before carrying through with the whistle-blowing action?

A CPA can accept a contingent fee in providing tax services for an attest client if:

The ethics rules that applies solely to those who conduct an audit of a client entity is:

Each of the following is an outright restriction on providing nonattest services for an attest client except for:

Describe the steps to be taken by a staff accountant who has been told by his/her supervisor to accelerate the recording of revenue into a period earlier than which it should be recognized under GAAP.

One concern in the Armadillo Foods case in the text of the chapter is:

The conceptual framework for the AICPA Independence standards can best be characterized as:

What is the maximum amount of time an audit manager or partner may spend on nonattest services for an attest client?

The question that arises in the First Community Church case is whether:

During the investigations by the House Subcommittee on Oversight and Investigations, a question that was raised was:

Sarbanes-Oxley Act (SOX) sets new standards for governance that will ultimately impact on which of the following?

Ethical Reasoning: Implications for Accounting

Cognitive Processes and Ethical Decision Making in Accounting

Creating an Ethical Organization Environment and Effective Corporate Governance Systems

Fraud in Financial Statements and Auditor Responsibilities

Legal, Regulatory, and Professional Obligations of Auditors

Earnings Management and the Quality of Financial Reporting

International Financial Reporting: Ethics and Corporate Governance Considerations

Filters