Essay about 1111
True / False Questions
1. The Rules portion of the AICPA Code of Professional Conduct must be followed by only those members in private practice.
2. The AICPA Code of Professional Conduct derives its authority from the Bylaws of the AICPA.
3. An immaterial loan from the CPA to an officer of a client impairs the independence of the CPA.
4. Financial interests of a CPA's nondependent children are attributed directly to the CPA.
5. Statements on Accounting and Review Services are enforceable under the AICPA Code of Professional Conduct.
6. CPAs may not advertise as to any special …show more content…
B. The auditor is independent if he or she is able to maintain a level of professional detachment.
C. The auditor can audit the financial statements only if the audit process does not culminate in the expression of an opinion on the financial statements.
D. The auditor cannot audit the financial statements since a lack of integrity exists.
13. Auditors are periodically punished for holding an investment in a client. This violates which ethical rule?
C. Non compliance with GAAP.
14. The AICPA Conceptual Framework for Independence Standards suggests that CPAs evaluate whether a particular threat would lead which type of person to conclude that an unacceptable risk of non-independence exists?
A. AICPA ethics examiner.
C. PCAOB inspector.
D. Reasonably informed third party.
15. Which of the following is not a broad category of threat to auditor independence?
B. Safeguards implemented by the client.
C. Financial self interest.
D. Undue Influence.
16. A small CPA firm provides audit services to a large local company. Almost eighty percent of the CPA firm's revenues come from this client. Which statement is most likely to be true?
A. Appearance of independence may be lacking.
B. The small CPA firm does not have the proficiency to perform a larger audit.
C. The situation is satisfactory if the