AUDITING RMU
11th Edition
ISBN: 9781260934830
Author: MESSIER
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 19, Problem 19.8RQ
To determine
Concept Introduction:Codes of professional conducts include a list of principles and regulations which define the set of standards of ethic and professional behavior that require for each members of the entity. It gives the general outline for the institute and its members, how they should behave and perform.
To discuss: The major difference between AICPA’s code of professional conduct independence rule and SEC’s independence rules for the auditor of public company.
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Students have asked these similar questions
How have the Sarbanes–Oxley Act's requirements impacted a public company's ability to choose its auditors?
Which of the following is not a way by which the Sarbanes-Oxley Act attempts to ensure auditor independence from an
audit client?
Multiple Choice
The auditing firm must be appointed by the client's audít committee.
The audit committee must be composed of members of the client's board of directors who are
independent of the management.
Audit fees must be approved by the Public Company Accounting Oversight Board.
The external auditor cannot also perform financial information system design and implementation work.
What are the auditor’s responsibilities to communicate information to the audit committee under PCAOB standards? If the auditor discovers that the audit committee routinely ignores such communications especially when they are critical of management’s use of GAAP in the financial statements, what step(s) might the auditor take at this point?
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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Similar questions
- Which of the following is true about the Sarbanes-Oxley Act? A. It was passed to ensure that internal controls are properly documented and tested by public companies. B. It applies to both public and smaller companies. C. It requires all companies to report their internal control policies to the US Securities and Exchange Commission. D. It does not require additional costs or resources to have adequate controls.arrow_forwardselect a corporate scandal of your choice and accordiing to Professional Code of Conduct given by AICPA was violated and how about the auditors?arrow_forward“The maintenance of auditor independence is vital to the credibility of the audit in the minds of the users of financial statements.” 1. State the provisions of the companies Act, 2019 (Act 992) which strengthen the independence of the auditor. 2. Suggest how the independence of the auditor might be further strengthened and improved.arrow_forward
- Why do you think the SEC requires companies to disclose fees paid to independent accountingfirms for audit and consulting services? What must be disclosed?arrow_forwardWhich of the following parties are responsible for the detection of errors and accounting irregularities in a company's financial statements? Multiple Choice O internal audit staff and audit committee of the board of directors. all of these answer choices are correct. the SEC staff during their review process external auditorsarrow_forwardI need the answer as soon as possiblearrow_forward
- 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 misstatementarrow_forwardConsider the following statements: I. For an audit of a non-public company a issue involving information in the “Management Discussion and Analysis section of the company’s annual report would be addressed in an Other Matter paragraph. II. The new PCAOB audit report includes a section involving Key Audit Matters. I is true; II is true I is true; II is false I is false; II is true I is false; II is falsearrow_forwardWhen employees have a conflict of interest between their personal compensation and provision of truthful financial statements to shareholders, the securities regulator, such as the Securities Exchange Commission, should shut down such financial companies. the external auditors should take the word of the employees and the management about the value of such securities. the accounting standards' supervisory board should be required to audit such financial companies. the board of directors should approve clear policy guidelines and monitor their enforcement to combat such conflicts. COarrow_forward
- respond to the following questions: Section 404 of the Sarbanes-Oxley Act of 2002 includes two sections. Describe those sections. Identify management’s four overall responsibilities with respect to internal control over fi nancialreporting that arise due to the Securities and Exchange Commission’s implementation ofthe Sarbanes-Oxley Act of 2002. What information must be included in management’s report on internal control over fi nancialreporting in the annual report fi led with the Securities and Exchange Commission? Describe the difference between a signifi cant defi ciency and a material weakness in internalcontrol. Comment on the accuracy of the following statement: “Since both signifi cant defi ciencies andmaterial weaknesses must be reported to the audit committee, for practical purposes, there isno distinction between the two.” What is meant by the “as of ” date when reporting on internal control over fi nancial reporting? What is a compensating control? Provide examples of…arrow_forwardexplain. the choices. An auditor is required to communicate significant deficiencies in internal control to Audit committee of the board of directors. Creditors and board of directors. Board of directors and internal auditors. Internal auditors and senior management.arrow_forwardWhere do I get help for these?arrow_forward
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