Pickens and Perkins, CPAS, decide to incorporate their practice of accountancy. According to the AICPA Code of Professional Conduct: Select one: O a. This is not an acceptable form of organization. Ob. This is an acceptable form of organization. O c. This is only an acteptable form of organization if the firm performs no audits. O d. This is an acceptable form of organization if a minority interest of public shareholders is established.

Pickens and Perkins, CPAS, decide to incorporate their practice of accountancy. According to the AICPA Code of Professional Conduct: Select one: O a. This is not an acceptable form of organization. Ob. This is an acceptable form of organization. O c. This is only an acteptable form of organization if the firm performs no audits. O d. This is an acceptable form of organization if a minority interest of public shareholders is established.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the below statements regarding the right of the auditor to attend for the shareholder meetings is not correct. a. Internal Auditor have the right to attend the shareholders meeting. b. External Auditor has a legal right to attend shareholders meeting and answer any queries made by the shareholders. c. Internal Auditor doesn’t have the right to attend the shareholders meeting. d. External Auditor has a legal right to attend shareholders meeting
Accounting firms may not audit the corporation for which they provide regular accounting services. True or False?
6) Some rules of conduct apply to accountants in public practice and not to those employed in industry. a. true b. false 7) Audits are conducted by accountants internal to the organization so that the users of the financial information can have confidence in the accuracy of the financial reporting. a) True b) False
When accountants agree to perform a compilation or review of unaudited financial statements, the best way to avoid clients’ misunderstanding the nature of the work is to describeit completely ina. An engagement letter.b. The auditors’ opinion.c. A report to the clients’ board of directors at the close of the engagement.d. A management letter to the board of directors’ audit committee.
An audit committee isa. Composed of internal auditors.b. Composed of members of the audit team.c. Composed of members of a company’s board of directors who are not involved in theday-to-day operations of the company.d. A committee composed of persons not associating in any way with the client or the boardof directors.
Certified Public Accountants (CPA) have imposed a rigorous code of conduct on themselves. A CPA engaged in the practice of public accounting can be a stockholder/shareholder of the company he is auditing. Select one: True False
However, the board is confused by the reference in the ASX Corporate Governance Principles and Recommendations to both independent directors and non-executive directors, as they thought that they were the same thing. As a result, they have sought your advice concerning the structure of their audit committee. Identify two key account balances at risk of material misstatement
I. MAS involves decision making of practitioner for the management to meet its goals.II. A CPA’ scope of management services is broad and covers financial and non-financial engagement including audit engagements, as this is within the expertise of CPA. A• True True B• False False C• False True D• True False
The main purpose of company accounts is stewardship, so accounting standards based on ‘decision-usefulness for investors’ are misconceived. And making the standards compulsory ‘Instructions’ rather than voluntary ‘Suggestions’ causes problems. What are your thoughts on this in relation to PAS 1?
37. The following are value the auditors provide EXCEPT Group of answer choices Internal auditors serve the public and common interests by making sure that owners receive the return on their investments that they are entitled to, and that the means of generating those profits are within the confines of the law. Internal auditors contribute to the principal-agent relationship by making sure that these duties are defined, that structures are set to ensure behaviors are aligned with these objectives and making recommendations to the board and senior management when there are discrepancies jeopardizing the success of these arrangements. None of the choices Internal Auditors can help management identify, plan for, and respond effectively to the primary and secondary stakeholders, the organization will encounter less pushback and it will likely be able to operate with fewer disruptions. Internal Auditors are change catalyst.
The audit committee’s responsibility for auditor independence concernsa. Ensuring that partners of the public accounting firm are not stockholders in the company.b. Ensuring that nonaudit services provided by the auditor do not impair independence.c. Reporting on auditor independence to the PCAOB.d. Ensuring that all nonaudit services are provided by auditors who do not perform the financial statement audit
Identify the each following statement is true or false. 1.The conceptual framework of APES contains 3 steps. 2.The NOCLAR amendments to APES110 provided a framework for members in relation to discrimination in the workplace. 3.Given the existence of the market manipulation roles, it is acceptable for a financial adviser providing investment advice to buy an asset for a client and sell the same asset in their own portfolio if there is an immediate need for liquidity. 4.For CFA members, the application of the ethical codes/standards requires the different parties impacted by a decision to be ranked according to how much income they generate for the member. 5.The distribution of material non-public information by a member is acceptable if there it is in the interests on a family member who needs emergency funds.