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.

Business/Professional Ethics Directors/Executives/Acct

8th Edition

ISBN:9781337485913

Author:BROOKS

Publisher:BROOKS

Chapter6: Professional Accounting In The Public Interest

Section: Chapter Questions

Problem 26Q

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b) The IESBA Code of Ethics for Professional Accountants highlights a number of areas in which threats might arise to independence and objectivity. Required; i. Explain what is meant by an advocacy threat and give an example of a situation which may create an advocacy threat. ii. State the category of threat that arises from an inappropriately close business relationship with a client and give two examples of close business relationships that would cause such a threat. c) An audit is one type of assurance engagement, but practitioners may carry out other assurance engagements, such as review engagements. Required; Describe a review engagement and explain the level of assurance given in such an engagement. d) Explain the terms `accountancy', `stewardship' and `agency' and explain how they can be applied to the relationship between directors and shareholders.
The IESBA Code of Ethics for Professional Accountants highlights a number of areas in which threats might arise to independence and objectivity. Required; i. Explain what is meant by an advocacy threat and give an example of a situation which may create an advocacy threat. il. State the category of threat that arises from an inappropriately close business relationship with a client and give two examples of close business relationships that would cause such a threat. 2. Explain the terms "accountancy', "stewardship' and "agency' and explain how they can be applied to the relationship between directors and shareholders.
According to the ethical standards of the profession, which of the following acts by a CPA is generally prohibited? A. Purchasing a product from a third party and reselling it to a client. B. Writing a financial management newsletter promoted and sold by a publishing company. C. Accepting a commission for recommending a product to an audit client D. Accepting engagements obtained through the efforts of third parties.
Select the necessary words from the list of possibilities to complete the following statements. Statements 1. The AICPA Code of Professional Conduct includes: Principles, Rules and Auditors must be independent of any enterprise and must also parties. 2. 3. A CPA's independence with respect to an enterprise will be impaired if the CPA has any or material indirect financial interest in the enterprise. In evaluating independence, financial interests of a CPA's 4. the CPA. 5. 6. 7. 8. 9. 10. independent to third are ascribed directly to CPAS in public practice should not accept a fee from an audit client that is specified finding. upon a Consulting services for audit clients should be advisory in nature, CPAS should not make decisions for these clients. Retaining a client's accounting records for nonpayment of fees is an act profession. The Accounting Principles Rule requires the CPA to recognize the pronouncements of the Financial Accounting Standards Board and the Government to the CPAS…
Which of the following ethical principles states that “A professional accountant should not allow bias, conflict of interest or undue influence of others to override professional or business judgments” Professional Behaviour Confidentiality Integrity Objectivity
If a public accounting firm says it always follows the rule that requires adherence to FASBpronouncements in order to give a standard unmodified auditors’ report, it is following aphilosophy characterized bya. The imperative principle.b. The utilitarian principle.c. Virtue ethics.d. Reliance on members’ collective conscience.
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The ethical standards for certified public accountants only require that such accountants comply with applicable laws and regulations. True or False True False
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