Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Chapter 4, Problem 20.2MCQ
To determine
Identify the events that might justify a departure from GAAP.
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Listed below are selected Rules of Conduct and ethical problems. Match the rule with the problem to which it applies. (One
Rule of Conduct may apply to more than one ethical problem.)
Rules
A. Independence
B. Integrity and objectivity
C. General standards
D. Compliance with standards
E. Accounting principles
F. Contingent fees
G. Acts discreditable
H. Advertising and other forms of solicitation
1. Commissions and referral fees
J. Form or practice and name
Rules
A CPA performs tax services that the CPA is not competent to perform.
An audit client owes the CPA past-due audit fees.
A CPA robs a service station.
The auditors fail to qualify their opinion on financial statements that do not properly apply FASB standards.
A CPA accepts a percentage of the client's loan as an audit fee.
Which of the following places more pressure on ethics officers to monitor financial and sales reporting?
A
B
с
D
E
Sarbanes-Oxley Act
Federal Sentencing Guidelines for Employees
Ethics Officer Responsibility Act
Sherman Antitrust Act
Enron Financial Responsibility Act
Listed below are selected Rules of Conduct and ethical problems. Match the rule with the problem to which it applies. (One Rule of
Conduct may apply to more than one ethical problem.)
Rules
A. Independence
B. Integrity and objectivity
C. General standards
D. Compliance with standards
E. Accounting principles
F. Contingent fees
G. Acts discreditable
H. Advertising and other forms of solicitation
I. Commissions and referral fees
J. Form or practice and name
Rules
An audit client owes the CPA past-due audit fees.
The auditors fail to qualify their opinion on financial statements that do not properly apply FASB standards.
A CPA who is the controller for a company knowingly issues misleading financial statements.
A CPA performs tax services that the CPA is not competent to perform.
A sole practitioner practices in a partnership name.
A member violates rules issued by the Accounting and Review Services Committee.
A CPA robs a service station.
A CPA accepts a percentage of the client's loan…
Chapter 4 Solutions
Auditing And Assurance Services
Ch. 4 - Prob. 1RQCh. 4 - Describe an ethical dilemma. How does a person...Ch. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - Prob. 5RQCh. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 8RQCh. 4 - Prob. 9RQCh. 4 - Prob. 10RQ
Ch. 4 - Prob. 11RQCh. 4 - Prob. 12RQCh. 4 - Prob. 13RQCh. 4 - Prob. 14RQCh. 4 - Prob. 15RQCh. 4 - Prob. 16RQCh. 4 - Prob. 17RQCh. 4 - Prob. 18.1MCQCh. 4 - Prob. 18.2MCQCh. 4 - Prob. 18.3MCQCh. 4 - Prob. 19.1MCQCh. 4 - Prob. 19.2MCQCh. 4 - Prob. 19.3MCQCh. 4 - Prob. 20.1MCQCh. 4 - Prob. 20.2MCQCh. 4 - Prob. 20.3MCQCh. 4 - Prob. 21DQPCh. 4 - Prob. 22DQPCh. 4 - Prob. 23DQPCh. 4 - Prob. 24DQPCh. 4 - Prob. 25DQPCh. 4 - Prob. 26DQPCh. 4 - Prob. 27DQPCh. 4 - Prob. 28DQPCh. 4 - Prob. 30CCh. 4 - Prob. 31CCh. 4 - Prob. 32C
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Many professional certifications now have requirements for ethics training. A. Define ethics. B. Why does the accounting profession put so much emphasis on acting ethically?arrow_forwardWhich of the following statements is incorrect? The practice of management accounting is fairly flexible. The information gathered from management accounting is not required by law. Management accounting focuses mainly on the internal user. Reports produced using management accounting must follow GAAP.arrow_forwardWhich is the first step within the hierarchy of guidance when selecting accounting policies? a. Apply a standard from PFRS (IFRS) if it specifically relates to the transaction b. Apply the requirements in PFRS (IFRS) dealing with similar and related issue c. Consider the applicability of the definitions, recognition criteria and measurement concepts in the Conceptual Framework d. Consider the most recent pronouncements of other standard setting bodiesarrow_forward
- Which of the following factors are considered when analyzing an indistry? I-the nature and conditions of governmental regulations II-the number, size and power of suppliers to the industry III- the development of new technologies relevant to the industry IV- the extent of competition within the industry A- I, II,III AND IV B-I, II AND III C-II, III, AND IV ONLY D-I, II, AND IV ONLYarrow_forwardAICPA members who work in industry and government must always uphold which two of the following AICPA rules of conduct?a. The Independence Rule.b. The Integrity and Objectivity Rule.c. The Confidential Client Information Rule.d. The Acts Discreditable Rule.arrow_forwardRecommend two or more improvements in ethical standards from an accounting perspectivearrow_forward
- Conduct of business regulation focuses on how firms conduct business with their customers and is designed not to ensure the safety and soundness of the institutions but to establish rules and guidelines about appropriate behaviour and business practices in dealing with customers. Describe five (5) rules and/or guidelines prescribed under the Securities Act and Regulations.arrow_forwardWhat roles must a professional accountant be prepared to perform in regard to ethical decisionproblems?arrow_forwardSupport for Politicization of rule making for accounting standardsarrow_forward
- Assess the accounting function within the organization in the context of regulatory and ethical constraints.arrow_forward6. Which of the following Threats to The Fundamental Principles of professional ethics, that may occur as a result of the financial interests of a professional accountant in a client company. a. Advocacy threat b. Self-interest threat c. Self review threat d. Intimidation threatarrow_forwardWhich of the following statements is not correct about management accounting OA. The information is more future-based OB. Different departments within the organisation make use of the information OC. The information is subject to the Chartered Institute of Management Accounting principles OD. The information provided is not for general usearrow_forward
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