EBK AUDITING & ASSURANCE SERVICES: A SY
11th Edition
ISBN: 9781260687668
Author: Jr
Publisher: MCGRAW-HILL LEARNING SOLN.(CC)
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Question
Chapter 19, Problem 19.22MCQ
To determine
Introduction:
Justice based perspective is one where auditor performs his responsibility of distributing fair and impartial documents to those who are benefitted from the same. The auditor gives and unbiased report.
Right based approach let auditors focus on high risk areas instead of low risk ones. It helps in getting the major concerns and minimizes audit risk.
Utilitarian Perspective focuses on achieving good for a great number of stakeholders with least harm and suffering.
To select: The correct option.
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Students have asked these similar questions
AICPA independence requirements suggest that a CPA should evaluate whether a particular threat to independence would lead a reasonable person, aware of all the relevant facts, to conclude that:
a
A questioning mind reveals doubt as to independence.
b
An unacceptable risk of non-independence exists.
c
The accountant is definitely not independent.
d
There is substantial cause for a legal finding of non-independence.
Do you believe that the SEC should prohibit auditors from providing all nonaudit services for audit clients? Use ethical reasoning to support your answer.
What are some questions that a CPA should consider when resolving an ethical dilemma?
Chapter 19 Solutions
EBK AUDITING & ASSURANCE SERVICES: A SY
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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Similar questions
- A CPA wishes to use representation letter as a substitute for performing other audit procedures. Doing so: Violates professional standards, Is acceptable, but should only be done when cost justified, Is acceptable, but only for non-public clients, Is acceptable and desirable under all conditionsarrow_forwardWhat are some civil and criminal consequences if CPAs/auditors fail to follow professional standards?arrow_forwardDescribe some civil and criminal consequences if CPAS/auditors fail to follow professional standards. I Summarize some things that CPAS can do to limit their liability and prevent lawsuits. Determine whether the liability risk to CPAS/auditors is appropriate, too high, or too low.arrow_forward
- Which of the following ethical principles states that "A professional accountant should avoid any action that discredits the profession"? a. Integrity b. Objectivity c. Professional behavior d. Professional competencearrow_forwardWhen applying the GAO's conceptual framework (framework), which step should the auditor apply first? Evaluate the threat to independence. Apply safeguards to mitigate threats to independence. Determine whether use of the framework is required. Identify the threat to independence. When applying the GAD's conceptual framework (framework), which step should the auditor apply first? Evaluate the threat to independence O Apply safeguards to mitigate threats to independence O Determine whether use of the framework is required. O Identify the threat to independencearrow_forwardTo what degree do you think individuals have a responsibility to act ethically within a corrupt system? How would an individual act ethically in this context? Please answer thoroughly and in depth. What legal reforms would you recommend that would make lobbyists more likely to act ethically? Why would you recommend these reforms and how might you implement them? Please answer thoroughly and in depth.arrow_forward
- Auditors behave in a questioning manner when evaluating material and drawing conclusions as a result of their skepticism. In this sense, objectivity and auditor independence are two important ethical standards that are inextricably tied to professional skepticism. The auditor's independence improves the auditor's capacity for moral behavior, objectivity, and professional skepticism.arrow_forwardIn our discussion of the KPMG professional judgment framework, we pointed out that biased judgments can be made because of judgment tendencies. One such tendency that was not included in the framework is self-serving bias. Explain what you think this means and how it might influence audit judgment.arrow_forwardGiven what you have learned about independence, do you believe that there would be a perceivedindependence problem concerning members of an audit engagement team entertaining employment offers from audit clients? Why or why not?arrow_forward
- Utilitarianism does not require which of the following actions when a person considers how to resolve an ethical dilemma? a. Identification of the potential problem and courses of action. b. Identification of the potential direct or indirect impact of actions on each affected party who has an interest in the outcome. c. Identification of the motivation of the person facing the ethical dilemma. d. Assessment of the desirability of each action for each affected party.arrow_forwardThe Conceptual Framework for AICPA Independence Standards(1) adopts a risk-based approach to analysis of independence matters.(2) defines independence of mind as avoiding circumstances in which reasonablepersons would conclude that integrity or objectivity has been compromised.(3) describes threats to independence as circumstances that impair independence.(4) states that safeguards must eliminate threats to independence to be consideredeffectivearrow_forwardWhat elements does a plaintiff have to prove to be successful in a case against a negligent auditor?arrow_forward
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