Question 1

With respect to ethics,the rights-based approach

Accepted Answer

A)   Suggests that auditors should always verify ownership of a client's material tangible assets.
B)   Is primarily concerned with equity and impartiality.
C)   Suggests that an individual's actions should not violate the rights of any individual.
D)   Recognizes that decisions involve trade-offs between costs and benefits.

Question 2

For private companies,accounting firms are prohibited from providing

Accepted Answer

A)   Outsourced internal audit services.
B)   Audit services.
C)   Review services.
D)   None of the above.

Question 3

Match between columns
                        Premises: Partner
Professional services
Practice of public accounting
Client
Attest engagement
Holding out

Accepted Answer

The Answer of Examples include financial statement audits, reviews, and is...

Question 4

In auditing a privately held entity,an auditor must follow the professional standards established by all of the following except:

Accepted Answer

A)   The AICPA's Auditing Standards Board.
B)   The Professional Code of Conduct.
C)   The Independence Standards Board.
D)   The PCAOB.

Question 5

An indirect financial interest is defined as a financial interest that is owned or is under the control of an individual or entity.

Accepted Answer

A) True 
 B)False

Question 6

With respect to ethics,the utilitarian theory

Accepted Answer

A)   Suggests that auditors should always verify ownership of a client's material tangible assets.
B)   Is primarily concerned with equity and impartiality.
C)   Suggests that an individual's actions should not violate the rights of any individual.
D)   Recognizes that decisions involve trade-offs between costs and benefits.

Question 7

Which of the following statements best describes why the profession of certified public accountants has deemed it essential to promulgate a code of conduct and to establish a mechanism for enforcing observance of the code?

Accepted Answer

A)   Ethical standards are established so that users of accounting services know what to expect, the professionals know what behaviors are acceptable, and overseers can take disciplinary action when appropriate.
B)   A prerequisite to success is the establishment of an ethical code that stresses primarily the professional's responsibility to clients and colleagues.
C)   A requirement of most state laws calls for the profession to establish a code of conduct.
D)   An essential means of self-protection for the profession is the establishment of flexible ethical standards by the profession.

Question 8

Listed below are definitions of the six Principles of Professional Conduct.For each,identify the principle being defined.
a.A member should observe the profession's technical and ethical standards,strive continually to improve competence and the quality of services,and discharge professional responsibility to the best of the member's ability.
b.Members should exercise sensitive professional and moral judgments in all their activities.
c.A member should be free of conflicts of interest in discharging professional responsibilities.
d.A member in public practice should observe the Principles of the Code of Professional Conduct in determining the type and extent of services to be provided.
e.Members should accept the obligation to act in a way that will honor the public trust and demonstrate commitment to professionalism.
f.To maintain and broaden public confidence,members should perform all professional responsibilities with the highest sense of ______________.

Accepted Answer

a.Due care.
b.Responsibilities...

Question 9

In performing an audit,Jackson,CPA,discovers that the professional competence necessary for the engagement is lacking.Jackson informs management of the situation and recommends another local CPA firm and management engages this other firm.Under these circumstances

Accepted Answer

A)   Jackson may request compensation from the other CPA firm for any professional services rendered to it in connection with the engagement.
B)   Jackson may accept a referral fee from the other CPA firm.
C)   Jackson has violated the AICPA Code of Professional Conduct because of non-fulfillment of the duty of performance.
D)   Jackson's lack of competence should be construed to be a violation of generally accepted auditing standards.

Question 10

According to the Code of Professional Conduct,which of the following individuals is not in a position to influence an attest engagement (i.e.,not a covered member) ?

Accepted Answer

A)   The office's managing partner who determines the compensation of the attest engagement partner.
B)   The office's IT expert, who consulted with the engagement partner regarding the client's IT system.
C)   The partner in another office in a nearby city who regularly plays golf with the engagement partner.
D)   The office's partner who monitors quality control over the attest engagement.

Question 11

Professionalism refers to the conduct,aims,or qualities that characterize or mark a given profession.

Accepted Answer

A) True 
 B)False

Question 12

A violation of the profession's ethical standards would least likely have occurred when a CPA in public practice

Accepted Answer

A)   Used a records-retention agency to store the CPA's working papers and client records.
B)   Served as an expert witness in a damage suit and received compensation based on the amount awarded to the plaintiff.
C)   Referred life insurance assignments to the CPA's spouse, who is a life insurance agent.
D)   Failed to file his personal tax return.

Question 13

Principles are stated at a conceptual level,not a detailed level.

Accepted Answer

A) True 
 B)False

Exam 19: Professional Conduct,Independence,and Quality Control

Correct Answer
verified
a.Due care.
b.Responsibilities...
View Answer

For private companies,accounting firms are prohibited from providing

Correct Answer
verified

In performing an audit,Jackson,CPA,discovers that the professional competence necessary for the engagement is lacking.Jackson informs management of the situation and recommends another local CPA firm and management engages this other firm.Under these circumstances

Correct Answer
verified

Professionalism refers to the conduct,aims,or qualities that characterize or mark a given profession.

Correct Answer
verified

Match each term below with its definition as provided by the AICPA Rules of Conduct.

Principles are stated at a conceptual level,not a detailed level.

Correct Answer
verified

Which of the following statements best describes why the profession of certified public accountants has deemed it essential to promulgate a code of conduct and to establish a mechanism for enforcing observance of the code?

Correct Answer
verified

According to the Code of Professional Conduct,which of the following individuals is not in a position to influence an attest engagement (i.e.,not a covered member) ?

Correct Answer
verified

In auditing a privately held entity,an auditor must follow the professional standards established by all of the following except:

Correct Answer
verified

With respect to ethics,the rights-based approach

Correct Answer
verified

An indirect financial interest is defined as a financial interest that is owned or is under the control of an individual or entity.

Correct Answer
verified

A violation of the profession's ethical standards would least likely have occurred when a CPA in public practice

Correct Answer
verified

With respect to ethics,the utilitarian theory

Correct Answer
verified

Exam 19: Professional Conduct,Independence,and Quality Control

Correct Answerverifieda.Due care.b.Responsibilities...View AnswerShow Answer

For private companies,accounting firms are prohibited from providing

Correct AnswerverifiedShow Answer

In performing an audit,Jackson,CPA,discovers that the professional competence necessary for the engagement is lacking.Jackson informs management of the situation and recommends another local CPA firm and management engages this other firm.Under these circumstances

Correct AnswerverifiedShow Answer

Professionalism refers to the conduct,aims,or qualities that characterize or mark a given profession.

Correct AnswerverifiedShow Answer

Match each term below with its definition as provided by the AICPA Rules of Conduct.

Principles are stated at a conceptual level,not a detailed level.

Correct AnswerverifiedShow Answer

Which of the following statements best describes why the profession of certified public accountants has deemed it essential to promulgate a code of conduct and to establish a mechanism for enforcing observance of the code?

Correct AnswerverifiedShow Answer

According to the Code of Professional Conduct,which of the following individuals is not in a position to influence an attest engagement (i.e.,not a covered member) ?

Correct AnswerverifiedShow Answer

In auditing a privately held entity,an auditor must follow the professional standards established by all of the following except:

Correct AnswerverifiedShow Answer

With respect to ethics,the rights-based approach

Correct AnswerverifiedShow Answer

An indirect financial interest is defined as a financial interest that is owned or is under the control of an individual or entity.

Correct AnswerverifiedShow Answer

A violation of the profession's ethical standards would least likely have occurred when a CPA in public practice

Correct AnswerverifiedShow Answer

With respect to ethics,the utilitarian theory

Correct AnswerverifiedShow Answer

Correct Answer
verified
a.Due care.
b.Responsibilities...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified