Question 1

Which of the following would be considered a violation of the AICPA Code of Conduct?

Accepted Answer

A)  The CPA makes the audit files available to the client's bank without the permission of the client.
B)  The CPA firm charges a contingent fee for nonattestation services to a client for whom he does not perform any attestation services.
C)  The CPA firm takes a prospective client to lunch to discuss auditing services.
D)  A CPA firm uses the name San Diego Tax Specialists.E) None of the above
F) A) and B)

Question 2

Several months after an unqualified audit report was issued,the auditor discovers the financial statements were materially misstated.The client's CEO agrees that there are misstatements,but refuses to correct them.She claims that "confidentiality" prevents the CPA from informing anyone.Which of the following statements is correct?

Accepted Answer

A)  The CEO is correct and the auditor must maintain confidentiality.
B)  The CEO is incorrect,but since the audit report has been issued,it is too late to correct the report.
C)  The CEO is correct,but to be ethically correct,the auditor should violate the confidentiality rule and disclose the error.
D)  The CEO is incorrect,and the auditor has an obligation to issue a revised audit report,even if the CEO will not correct the financial statements.E) A) and D)
F) B) and D)

Question 3

A CPA firm

Accepted Answer

A)  can sell securities to a client for whom they perform an attestation service.
B)  can receive a commission for a client that they are engaged to perform an attestation service for.
C)  cannot receive a referral fee for recommending the services of another CPA.
D)  can receive a commission from a nonattestation client as long as the situation is disclosed.E) A) and C)
F) A) and D)

Question 4

The CPA firm will lose its independence if

Accepted Answer

A)  a staff auditor providing audit services to the client acquires stock in that client.
B)  a staff tax preparer who provides 15 hours of non-audit services to the client acquires stock in that client.
C)  an audit manager in an office different than the office providing audit services has a direct,immaterial financial interest in the audit client.
D)  a covered member has an indirect,immaterial financial interest in an audit client.E) B) and C)
F) A) and B)

Question 5

Four of the six Ethical Principles in the AICPA's Code of Professional Conduct are equally applicable to all members of the AICPA.Which of the following principles applies only to members in public practice?

Accepted Answer

A)  Scope and Nature of Services
B)  Integrity
C)  Due Care
D)  The Public InterestE) A) and B)
F) A) and C)

Question 6

Describe an ethical dilemma that an auditor or an accountant might face in his or her business career,then illustrate how the auditor or accountant might use the six-step approach presented in the text to resolve that dilemma.Be specific.

Accepted Answer

An ethical dilemma is a situation a pers...

Exam 4: Professional Ethics

A CPA firm

Correct Answer
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Which of the following would be considered a violation of the AICPA Code of Conduct?

Correct Answer
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Four of the six Ethical Principles in the AICPA's Code of Professional Conduct are equally applicable to all members of the AICPA.Which of the following principles applies only to members in public practice?

Correct Answer
verified

Correct Answer
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Describe an ethical dilemma that an auditor or an accountant might face in his or her business career,then illustrate how the auditor or accountant might use the six-step approach presented in the text to resolve that dilemma.Be specific.

Correct Answer
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An ethical dilemma is a situation a pers...
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The CPA firm will lose its independence if

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Exam 4: Professional Ethics

A CPA firm

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Which of the following would be considered a violation of the AICPA Code of Conduct?

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Four of the six Ethical Principles in the AICPA's Code of Professional Conduct are equally applicable to all members of the AICPA.Which of the following principles applies only to members in public practice?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Describe an ethical dilemma that an auditor or an accountant might face in his or her business career,then illustrate how the auditor or accountant might use the six-step approach presented in the text to resolve that dilemma.Be specific.

Correct AnswerverifiedAn ethical dilemma is a situation a pers...View AnswerShow Answer

The CPA firm will lose its independence if

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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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An ethical dilemma is a situation a pers...
View Answer

Correct Answer
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