23.Which of the following statements is true when the CPA has been engaged to do anattestation engagement?a.The CPA firm is engaged and paid by the client; therefore, the firm has primaryresponsibility to be an advocate for the client.b.The CPA firm is engaged and paid by the client, but the primary beneficiaries of the auditare those who rely on the financial statements.c.Should a situation arise where there is no convincing authoritative standard available, andthere is a choice of actions which could impact a client’s financial statements, the CPA isfree to endorse the choice which is in the investors’ interests.d.None of the above is true.B
24.The AICPA’sCode of Professional Conductrequires independence for all:
25.Interpretations of independence rule regarding a “direct financial interest” have presumedthat a violation exists in which of the following circumstances, unless other circumstances offsetsuch a presumption?
26.Which of the following isleastlikely to impair aCPA firm'sindependence with respect to an auditclient in the Oklahoma City office of a national CPA firm?D
27.Each of the following situations involves a possible violation of the rule on independence. Foreach situation, (1) decide whether theCodeof Professional Conducthas been violated, and (2)briefly explain how the situation violates (or does not violate) theCode of Professional Conducta.Harry Brown is a partner in the Topeka office of Hedley & Co., CPAs.Harry’s brother is employed in an audit-sensitive position by JensenAppliances, a publicly held company in Kansas. Jensen Appliances is one ofHedley & Co.’s audit clients. Neither Harry nor personnel from the Topekaoffice is involved in the audit of Jensen ..No
27.mediumWhich of the following statements is true when the CPA has been engaged to do anattestation engagement?Ba.The CPA firm is engaged and paid by the client; therefore, the firm has primaryresponsibility to be an advocate for the client.b.The CPA firm is engaged and paid by the client, but the primary beneficiaries of theaudit are the statement users.c.Should a situation arise where there is no convincing authoritative standard available,and there is a choice of actions which could impact client’s financial statements eitherpositively or negatively, the CPA is free to endorse the choice which is in the client’sinterests.d.As long as CPA firms are competent, it is not required that they remain unbiased.
28.mediumIn a code of conduct, the advantage of general statements of ideal conduct, as opposed tospecific rules of behavior, isA
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29.mediumWhich of the following is not one of the four parts of the AICPA’sCode of ProfessionalConduct?A
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30.mediumOne of the AICPA’s Ethical Principles deals with the public interest. It states that membersshould accept the obligation to act in a way that willD
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31.According to the Principles section of theCode of Professional Conductmedium,a.all members should be independent in fact and in appearance at all times.Cb.all members in public practice should be independent in fact and in appearance at alltimes.c.all members in public practice should be independent in fact and in appearance whenproviding auditing and other attestation services.d.all members in public practice should be independent in fact and in appearance whenproviding auditing, tax, and MAS services.
32.Of the various parts of the AICPA’sCode of Professional Conductmediuma.the Principles are enforceable.D,
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33.mediumWhich of the following statements best describes the enforceability of the Interpretations ofthe Rules of Conduct?D
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