AUDITING RMU
11th Edition
ISBN: 9781260934830
Author: MESSIER
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 19, Problem 19.21MCQ
To determine
Introduction:
The Code of Professional Conduct of the American Institute of Certified Public Accountants describes Principles and Rules. The principles provide the framework for the rules which govern the performance of professional services by members. It outlines CPAA’s ethical and professional responsibilities. The code establishes Principles which are: Public Interest, Integrity, Objectivity, Independence, Responsibility and Due care.
To select: The correct option.
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Which of the following acts by a CPA would be most likely to be a violation of the AICPA Code of Professional Conduct?
Select one:
A “covered member” owns an immaterial amount of stock in an audit client.
Accepting a fee in a tax matter that is contingent upon the result of an administrative proceeding.
Assisting a client in preparing a financial forecast.
Forming a professional corporation to practice as a CPA.
1. Which of the following statements is true? The CPA firm will lose its independence if:
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. an audit partner has an indirect, immaterial financial interest in an audit client that he
is not in charge of.
2. The correct sequence of the paragraphs in the audit report should be:
A. Basis of opinion – Explanatory paragraph – Opinion.
B. Opinion - Basis of opinion – Explanatory paragraph.
C. Opinion - Explanatory paragraph – Basis of opinion.
D. Basis of opinion – Opinion – Explanatory paragraph.
3. The underlying reason for a code of professional ethics for auditing profession is:
A. the need for public confidence in the quality of service of…
According to the AICPA Code of Conduct, which of the following acts is generally forbidden to CPAs in public practice?a. Purchasing bookkeeping software from a high-tech development company and resellingit to tax clients.b. Being the author of a “TaxAid” newsletter promoted and sold by a publishing company.c. Having a commission arrangement with an accounting software developer to receive4 percent of the price of programs recommended and sold to audit clients.d. Engaging a marketing firm to obtain new financial planning clients for a fixed fee of$1,000 for each successful contact.
Chapter 19 Solutions
AUDITING RMU
Ch. 19 - Prob. 19.1RQCh. 19 - Prob. 19.2RQCh. 19 - Prob. 19.3RQCh. 19 - Prob. 19.4RQCh. 19 - Prob. 19.5RQCh. 19 - Prob. 19.6RQCh. 19 - Prob. 19.7RQCh. 19 - Prob. 19.8RQCh. 19 - Prob. 19.9RQCh. 19 - Prob. 19.10RQ
Ch. 19 - Prob. 19.11RQCh. 19 - Prob. 19.12RQCh. 19 - Prob. 19.13RQCh. 19 - Prob. 19.14MCQCh. 19 - Prob. 19.15MCQCh. 19 - Prob. 19.16MCQCh. 19 - Prob. 19.17MCQCh. 19 - Prob. 19.18MCQCh. 19 - Prob. 19.19MCQCh. 19 - Prob. 19.20MCQCh. 19 - Prob. 19.21MCQCh. 19 - Prob. 19.22MCQCh. 19 - Prob. 19.23MCQCh. 19 - Prob. 19.24MCQCh. 19 - Prob. 19.25MCQCh. 19 - Prob. 19.26MCQCh. 19 - Prob. 19.27PCh. 19 - Prob. 19.28PCh. 19 - Prob. 19.29PCh. 19 - Prob. 19.30PCh. 19 - Prob. 19.31P
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