AUD 2 Professional Responsibilities and Ethics 4 Flashcards

Question 1

Q

When a CPA provides corporate f_______ consulting services, the advocacy, management participation, and self-review threats are affected.

Answer

A

Corporate Finance Consulting

When a CPA provides corporate finance consulting services, the advocacy, management participation, and self-review threats are affected.

Question 2

Q

When a CPA provides corporate finance consulting services, the a________, management participation, and self-review threats are affected.

Answer

A

Corporate Finance Consulting

When a CPA provides corporate finance consulting services, the advocacy, management participation, and self-review threats are affected.

Question 3

Q

When a CPA provides corporate finance consulting services, the advocacy, __________ ____________, and self-review threats are affected.

Answer

A

Corporate Finance Consulting

When a CPA provides corporate finance consulting services, the advocacy, management participation, and self-review threats are affected.

Question 4

Q

When a CPA provides corporate finance consulting services, the advocacy, management participation, and ____ - ______ threats are affected.

Answer

A

Corporate Finance Consulting

When a CPA provides corporate finance consulting services, the advocacy, management participation, and self-review threats are affected.

Question 5

Q

When a CPA provides corporate finance consulting services, the advocacy, management participation, and self-review threats are affected.

Without raising threats to an unacceptable level, however, a CPA may:

• Assist m___________ in developing corporate strategies and identifying capital sources, based on client criteria;

Answer

A

Corporate Finance Consulting

When a CPA provides corporate finance consulting services, the advocacy, management participation, and self-review threats are affected.

Without raising threats to an unacceptable level, however, a CPA may:

• Assist management in developing corporate strategies and identifying capital sources, based on client criteria;

Question 6

Q

When a CPA provides corporate finance consulting services, the advocacy, management participation, and self-review threats are affected.

Without raising threats to an unacceptable level, however, a CPA may:

• Assist management in developing corporate s__________s and identifying capital sources, based on client criteria;

Answer

A

Corporate Finance Consulting

Without raising threats to an unacceptable level, however, a CPA may:

• Assist management in developing corporate strategies and identifying capital sources, based on client criteria;

Question 7

Q

When a CPA provides corporate finance consulting services, the advocacy, management participation, and self-review threats are affected.

Without raising threats to an unacceptable level, however, a CPA may:

• Assist management in developing corporate strategies and identifying capital sources, based on c_____ criteria;

Answer

A

Corporate Finance Consulting

Without raising threats to an unacceptable level, however, a CPA may:

• Assist management in developing corporate strategies and identifying capital sources, based on client criteria;

Question 8

Q

When a CPA provides corporate finance consulting services, the advocacy, management participation, and self-review threats are affected.

Without raising threats to an unacceptable level, however, a CPA may:

• A_____ management in developing corporate strategies and identifying capital sources, based on client criteria;

Answer

A

Corporate Finance Consulting

Without raising threats to an unacceptable level, however, a CPA may:

• Assist management in developing corporate strategies and identifying capital sources, based on client criteria;

Question 9

Q

When a CPA provides corporate finance consulting services, the advocacy, management participation, and self-review threats are affected.

Without raising threats to an unacceptable level, however, a CPA may:

Introduce sources of c_____ to the client, based on client criteria;
Assist m__________ in determining effects of potential transactions with possible buyers, sellers, or providers of financing;

Answer

A

Corporate Finance Consulting

When a CPA provides corporate finance consulting services, the advocacy, management participation, and self-review threats are affected.

Without raising threats to an unacceptable level, however, a CPA may:

Introduce sources of capital to the client, based on client criteria;
Assist management in determining effects of potential transactions with possible buyers, sellers, or providers of financing;

Question 10

Q

When a CPA provides corporate finance consulting services, the advocacy, management participation, and self-review threats are affected.

Without raising threats to an unacceptable level, however, a CPA may:

I________ sources of capital to the client, based on client criteria;
A_____ management in determining effects of potential transactions with possible buyers, sellers, or providers of financing;

Answer

A

Corporate Finance Consulting

Without raising threats to an unacceptable level, however, a CPA may:

Introduce sources of capital to the client, based on client criteria;
Assist management in determining effects of potential transactions with possible buyers, sellers, or providers of financing;

Question 11

Q

When a CPA provides corporate finance consulting services, the advocacy, management participation, and self-review threats are affected.

Without raising threats to an unacceptable level, however, a CPA may:

Introduce sources of capital to the client, based on c_____ criteria;
Assist management in d_______ing effects of potential transactions with possible buyers, sellers, or providers of financing;

Answer

A

Corporate Finance Consulting

Without raising threats to an unacceptable level, however, a CPA may:

Introduce sources of capital to the client, based on client criteria;
Assist management in determining effects of potential transactions with possible buyers, sellers, or providers of financing;

Question 12

Q

Without raising threats to an unacceptable level, however, a CPA may:

Introduce s_______s of capital to the client, based on client criteria;
Assist management in determining effects of potential transactions with possible buyers, sellers, or providers of f_____ing;

Answer

A

Corporate Finance Consulting

Without raising threats to an unacceptable level, however, a CPA may:

Introduce sources of capital to the client, based on client criteria;
Assist management in determining effects of potential transactions with possible buyers, sellers, or providers of financing;

Question 13

Q

When a CPA provides corporate finance consulting services, the advocacy, management participation, and self-review threats are affected.

Without raising threats to an unacceptable level, however, a CPA may:

A_____ the client during negotiations and assist the client in drafting its offering documents;
Participate, in an a_____y capacity, in transaction negotiations; or
Be named as the client’s financial a_____ in a private placement memorandum or an offering document.

Answer

A

Corporate Finance Consulting

When a CPA provides corporate finance consulting services, the advocacy, management participation, and self-review threats are affected.

Without raising threats to an unacceptable level, however, a CPA may:

Advise the client during negotiations and assist the client in drafting its offering documents;
Participate, in an advisory capacity, in transaction negotiations; or
Be named as the client’s financial adviser in a private placement memorandum or an offering document.

Question 14

Q

When a CPA provides corporate finance consulting services, the advocacy, management participation, and self-review threats are affected.

Without raising threats to an unacceptable level, however, a CPA may:

• Advise the client during negotiations
and a____ the client in drafting its offering documents;

Participate, in an advisory capacity, in transaction neg_______s; or
Be named as the client’s f_______ adviser in a private placement memorandum or an offering document.

Answer

A

Corporate Finance Consulting

Without raising threats to an unacceptable level, however, a CPA may:

Advise the client during negotiations and assist the client in drafting its offering documents;
Participate, in an advisory capacity, in transaction negotiations; or
Be named as the client’s financial adviser in a private placement memorandum or an offering document.

Question 15

Q

When a CPA provides corporate finance consulting services, the advocacy, management participation, and self-review threats are affected.

Without raising threats to an unacceptable level, however, a CPA may:

• Advise the client during neg_______s
and assist the client in drafting its offering documents;

Participate, in an advisory capacity, in t________n negotiations; or
Be named as the client’s financial adviser in a private placement memo______ or an offering d________.

Answer

A

Corporate Finance Consulting

Without raising threats to an unacceptable level, however, a CPA may:

Advise the client during negotiations and assist the client in drafting its offering documents;
Participate, in an advisory capacity, in transaction negotiations; or
Be named as the client’s financial adviser in a private placement memorandum or an offering document.

Question 16

Q

Corporate Finance Consulting

When a CPA provides c_________ finance consulting services, the advocacy, management participation, and self-review threats are affected.

Without raising threats to an unacceptable level, however, a CPA may:

Assist management in developing corporate strategies and identifying capital sources, based on client criteria;
Introduce sources of capital to the client, based on client criteria;
Assist management in determining effects of potential transactions with possible buyers, sellers, or providers of financing;

• Advise the client during negotiations
and assist the client in drafting its offering documents;

Participate, in an advisory capacity, in transaction negotiations; or
Be named as the client’s financial adviser in a private placement memorandum or an offering document.

Answer

A

Corporate Finance Consulting

When a CPA provides corporate finance consulting services, the advocacy, management participation, and self-review threats are affected.

Without raising threats to an unacceptable level, however, a CPA may:

Assist management in developing corporate strategies and identifying capital sources, based on client criteria;
Introduce sources of capital to the client, based on client criteria;
Assist management in determining effects of potential transactions with possible buyers, sellers, or providers of financing;

• Advise the client during negotiations
and assist the client in drafting its offering documents;

Participate, in an advisory capacity, in transaction negotiations; or
Be named as the client’s financial adviser in a private placement memorandum or an offering document.

Question 17

Q

Corporate Finance Consulting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

Commits the c____ to a transaction;
Consummates a transaction on behalf of a c____;

Answer

A

Corporate Finance Consulting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

Commits the client to a transaction;
Consummates a transaction on behalf of a client;

Question 18

Q

Corporate Finance Consulting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

C_____s the client to a transaction;
Consummates a t________n on behalf of a client;

Answer

A

Corporate Finance Consulting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

Commits the client to a transaction;
Consummates a transaction on behalf of a client;

Question 19

Q

Corporate Finance Consulting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

Acts as promoter, underwriter, broker-dealer, or g____tor of client securities;
Acts as d_____tor of a client’s private placement memorandum or offering documents; or
Maintains c______y of the client’s securities.

Answer

A

Corporate Finance Consulting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

Acts as promoter, underwriter, broker-dealer, or guarantor of client securities;
Acts as distributor of a client’s private placement memorandum or offering documents; or
Maintains custody of the client’s securities.

Question 20

Q

Corporate Finance Consulting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

Acts as p_____ter, underwriter, broker-dealer, or guarantor of client securities;
A__s as distributor of a client’s private placement memorandum or offering documents; or
Maintains custody of the client’s s_____ies.

Answer

A

Corporate Finance Consulting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

Acts as promoter, underwriter, broker-dealer, or guarantor of client securities;
Acts as distributor of a client’s private placement memorandum or offering documents; or
Maintains custody of the client’s securities.

Question 21

Q

Corporate Finance Consulting

Threats would be raised to an __________ level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

Commits the client to a transaction;
Consummates a transaction on behalf of a client;
Acts as promoter, underwriter, broker-dealer, or guarantor of client securities;
Acts as distributor of a client’s private placement memorandum or offering documents; or
Maintains custody of the client’s securities.

Answer

A

Corporate Finance Consulting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

Commits the client to a transaction;
Consummates a transaction on behalf of a client;
Acts as promoter, underwriter, broker-dealer, or guarantor of client securities;
Acts as distributor of a client’s private placement memorandum or offering documents; or
Maintains custody of the client’s securities.

Question 22

Q

When a CPA provides executive or employee r_____ing services, the management participation and self-review threats are affected.

Answer

A

Executive or Employee Recruiting

When a CPA provides executive or employee recruiting services, the management participation and self-review threats are affected.

Question 23

Q

When a CPA provides executive or employee recruiting services, the ___________ _____________ and ____ - ________ threats are affected.

Answer

A

Executive or Employee Recruiting

When a CPA provides executive or employee recruiting services, the management participation and self-review threats are affected.

Question 24

Q

When a CPA provides executive or employee recruiting services, the management participation and self-review threats are affected.

Without raising threats to an unacceptable level, a CPA may:

• R__________ candidate specifications or a position description to the client;

Answer

A

Executive or Employee Recruiting

When a CPA provides executive or employee recruiting services, the management participation and self-review threats are affected.

Without raising threats to an unacceptable level, a CPA may:

• Recommend candidate specifications or a position description to the client;

Question 25

Q

When a CPA provides executive or employee recruiting services, the management participation and self-review threats are affected.

Without raising threats to an unacceptable level, a CPA may:

• Recommend ca________ specifications or a position description to the client;

Answer

A

Executive or Employee Recruiting

Without raising threats to an unacceptable level, a CPA may:

• Recommend candidate specifications or a position description to the client;

Question 26

Q

When a CPA provides executive or employee recruiting services, the management participation and self-review threats are affected.

Without raising threats to an unacceptable level, a CPA may:

• Recommend candidate specifications or a position desc_______ to the client;

Answer

A

Executive or Employee Recruiting

Without raising threats to an unacceptable level, a CPA may:

• Recommend candidate specifications or a position description to the client;

Question 27

Q

When a CPA provides executive or employee recruiting services, the management participation and self-review threats are affected.

Without raising threats to an unacceptable level, a CPA may:

• Solicit and screen ca________s who conform to client criteria;

Answer

A

Executive or Employee Recruiting

When a CPA provides executive or employee recruiting services, the management participation and self-review threats are affected.

Without raising threats to an unacceptable level, a CPA may:

• Solicit and screen candidates who conform to client criteria;

Question 28

Q

When a CPA provides executive or employee recruiting services, the management participation and self-review threats are affected.

Without raising threats to an unacceptable level, a CPA may:

• Solicit and screen candidates who conform to client cri_____;

Answer

A

Executive or Employee Recruiting

Without raising threats to an unacceptable level, a CPA may:

• Solicit and screen candidates who conform to client criteria;

Question 29

Q

When a CPA provides executive or employee recruiting services, the management participation and self-review threats are affected.

Without raising threats to an unacceptable level, a CPA may:

• Solicit and sc____ candidates who conform to client criteria;

Answer

A

Executive or Employee Recruiting

Without raising threats to an unacceptable level, a CPA may:

• Solicit and screen candidates who conform to client criteria;

Question 30

Q

When a CPA provides executive or employee recruiting services, the management participation and self-review threats are affected.

Without raising threats to an unacceptable level, a CPA may:

• R___________ candidates who appear qualified based on client criteria; and

Answer

A

Executive or Employee Recruiting

When a CPA provides executive or employee recruiting services, the management participation and self-review threats are affected.

Without raising threats to an unacceptable level, a CPA may:

• Recommend candidates who appear qualified based on client criteria; and

Question 31

Q

When a CPA provides executive or employee recruiting services, the management participation and self-review threats are affected.

Without raising threats to an unacceptable level, a CPA may:

• Recommend c__________s who appear qualified based on client criteria; and

Answer

A

Executive or Employee Recruiting

Without raising threats to an unacceptable level, a CPA may:

• Recommend candidates who appear qualified based on client criteria; and

Question 32

Q

When a CPA provides executive or employee recruiting services, the management participation and self-review threats are affected.

Without raising threats to an unacceptable level, a CPA may:

• Recommend candidates who appear q_____ied based on client criteria; and

Answer

A

Executive or Employee Recruiting

Without raising threats to an unacceptable level, a CPA may:

• Recommend candidates who appear qualified based on client criteria; and

Question 33

Q

When a CPA provides executive or employee recruiting services, the management participation and self-review threats are affected.

Without raising threats to an unacceptable level, a CPA may:

• Participate, in an a______y capacity, in hiring or compensation discussions.

Answer

A

Executive or Employee Recruiting

When a CPA provides executive or employee recruiting services, the management participation and self-review threats are affected.

Without raising threats to an unacceptable level, a CPA may:

• Participate, in an advisory capacity, in hiring or compensation discussions.

Question 34

Q

When a CPA provides executive or employee recruiting services, the management participation and self-review threats are affected.

Without raising threats to an unacceptable level, a CPA may:

• Participate, in an advisory capacity, in h__ing or compensation discussions.

Answer

A

Executive or Employee Recruiting

Without raising threats to an unacceptable level, a CPA may:

• Participate, in an advisory capacity, in hiring or compensation discussions.

Question 35

Q

When a CPA provides executive or employee recruiting services, the management participation and self-review threats are affected.

Without raising threats to an unacceptable level, a CPA may:

• Participate, in an advisory capacity, in hiring or compensation disc______s.

Answer

A

Executive or Employee Recruiting

Without raising threats to an unacceptable level, a CPA may:

• Participate, in an advisory capacity, in hiring or compensation discussions.

Question 36

Q

When a CPA provides executive or employee recruiting services, the management participation and self-review threats are affected.

Without raising threats to an unacceptable level, a CPA may:

• Participate, in an advisory capacity, in hiring or com_______n discussions.

Answer

A

Executive or Employee Recruiting

Without raising threats to an unacceptable level, a CPA may:

• Participate, in an advisory capacity, in hiring or compensation discussions.

Question 37

Q

Executive or Employee Recruiting

When a CPA provides executive or e_________ recruiting services, the management participation and self-review threats are affected.

Without raising threats to an unacceptable level, a CPA may:

Recommend candidate specifications or a position description to the client;
Solicit and screen candidates who conform to client criteria;
Recommend candidates who appear qualified based on client criteria; and
Participate, in an advisory capacity, in hiring or compensation discussions.

Answer

A

Executive or Employee Recruiting

When a CPA provides executive or employee recruiting services, the management participation and self-review threats are affected.

Without raising threats to an unacceptable level, a CPA may:

Recommend candidate specifications or a position description to the client;
Solicit and screen candidates who conform to client criteria;
Recommend candidates who appear qualified based on client criteria; and
Participate, in an advisory capacity, in hiring or compensation discussions.

Question 38

Q

Executive or Employee Recruiting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

• Com___s the client to employee compensation or benefit arrangements;

Answer

A

Executive or Employee Recruiting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

• Commits the client to employee compensation or benefit arrangements;

Question 39

Q

Executive or Employee Recruiting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

• Commits the client to em_____ compensation or benefit arrangements;

Answer

A

Executive or Employee Recruiting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

• Commits the client to employee compensation or benefit arrangements;

Question 40

Q

Executive or Employee Recruiting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

• Commits the client to employee com________n or benefit arrangements;

Answer

A

Executive or Employee Recruiting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

• Commits the client to employee compensation or benefit arrangements;

Question 41

Q

Executive or Employee Recruiting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

• Commits the client to employee compensation or b______ arrangements;

Answer

A

Executive or Employee Recruiting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

• Commits the client to employee compensation or benefit arrangements;

Question 42

Q

Executive or Employee Recruiting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

• Commits the c_____ to employee compensation or benefit arrangements;

Answer

A

Executive or Employee Recruiting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

• Commits the client to employee compensation or benefit arrangements;

Question 43

Q

Executive or Employee Recruiting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

• H____s or terminates client employees.

Answer

A

Executive or Employee Recruiting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

• Hires or terminates client employees.

Question 44

Q

Executive or Employee Recruiting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

• Hires or t_______s client employees.

Answer

A

Executive or Employee Recruiting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

• Hires or terminates client employees.

Question 45

Q

Executive or Employee Recruiting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

• Hires or terminates client e_______s.

Answer

A

Executive or Employee Recruiting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

• Hires or terminates client employees.

Question 46

Q

Executive or Employee Recruiting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

• Hires or terminates c_____ employees.

Answer

A

Executive or Employee Recruiting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

• Hires or terminates client employees.

Question 47

Q

Executive or Employee Recruiting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of s_________s

if the accountant (Cannot do):

Commits the client to employee compensation or benefit arrangements; or
Hires or terminates client employees.

Answer

A

Executive or Employee Recruiting

Threats would be raised to an unacceptable level and the accountant would not be able to reduce them to an acceptable level through the application of safeguards

if the accountant (Cannot do):

Commits the client to employee compensation or benefit arrangements; or
Hires or terminates client employees.

Question 48

Q

A CPA may provide f_______c accounting services, consisting of investigative services and litigation services.

Answer

A

Forensic Accounting

A CPA may provide forensic accounting services, consisting of investigative services and litigation services.

Question 49

Q

A CPA may provide forensic accounting services, consisting of inv________ services and litigation services.

Answer

A

Forensic Accounting

A CPA may provide forensic accounting services, consisting of investigative services and litigation services.

Question 50

Q

A CPA may provide forensic accounting services, consisting of investigative services and l________ services.

Answer

A

Forensic Accounting

A CPA may provide forensic accounting services, consisting of investigative services and litigation services.

Question 51

Q

Forensic Accounting

Inv________ services include all forensic services that do not involve litigation and affect the management participation and self-review threats to independence.

Answer

A

Forensic Accounting

Investigative services include all forensic services that do not involve litigation and affect the management participation and self-review threats to independence.

Question 52

Q

Forensic Accounting

Investigative services include all f______c services that do not involve litigation and affect the management participation and self-review threats to independence.

Answer

A

Forensic Accounting

Investigative services include all forensic services that do not involve litigation and affect the management participation and self-review threats to independence.

Question 53

Q

Forensic Accounting

Investigative services include all forensic services that do not involve l_______ and affect the management participation and self-review threats to independence.

Answer

A

Forensic Accounting

Investigative services include all forensic services that do not involve litigation and affect the management participation and self-review threats to independence.

Question 54

Q

Forensic Accounting

Investigative services include all forensic services that do not involve litigation and affect the m__________ ___________ and self-review threats to independence.

Answer

A

Forensic Accounting

Investigative services include all forensic services that do not involve litigation and affect the management participation and self-review threats to independence.

Question 55

Q

Forensic Accounting

L_______ services pertain to actual or potential proceedings, legal or regulatory, before a trier of facts to resolve a dispute between parties.

L_______ services include expert witness services, l_______ consulting services, and other related services.

Answer

A

Forensic Accounting

Litigation services pertain to actual or potential proceedings, legal or regulatory, before a trier of facts to resolve a dispute between parties.

Litigation services include expert witness services, litigation consulting services, and other related services.

Question 56

Q

Forensic Accounting

Litigation services pertain to ac_____ or potential proceedings, legal or regulatory, before a trier of facts to resolve a dispute between parties.

Answer

A

Forensic Accounting

Litigation services pertain to actual or potential proceedings, legal or regulatory, before a trier of facts to resolve a dispute between parties.

Question 57

Q

Forensic Accounting

Litigation services pertain to actual or po_____ proceedings, legal or regulatory, before a trier of facts to resolve a dispute between parties.

Answer

A

Forensic Accounting

Litigation services pertain to actual or potential proceedings, legal or regulatory, before a trier of facts to resolve a dispute between parties.

Question 58

Q

Forensic Accounting

Litigation services pertain to actual or potential proceedings, l____ or regulatory, before a trier of facts to resolve a dispute between parties.

Answer

A

Forensic Accounting

Litigation services pertain to actual or potential proceedings, legal or regulatory, before a trier of facts to resolve a dispute between parties.

Question 59

Q

Forensic Accounting

Litigation services pertain to actual or potential proceedings, legal or r_______y, before a trier of facts to resolve a dispute between parties.

Answer

A

Forensic Accounting

Litigation services pertain to actual or potential proceedings, legal or regulatory, before a trier of facts to resolve a dispute between parties.

Question 60

Q

Forensic Accounting

Litigation services pertain to actual or potential proceedings, legal or regulatory, before a trier of f____s to resolve a dispute between parties.

Answer

A

Forensic Accounting

Litigation services pertain to actual or potential proceedings, legal or regulatory, before a trier of facts to resolve a dispute between parties.

Question 61

Q

Forensic Accounting

Litigation services pertain to actual or potential proceedings, legal or regulatory, before a trier of facts to resolve a d______ between parties.

Answer

A

Forensic Accounting

Litigation services pertain to actual or potential proceedings, legal or regulatory, before a trier of facts to resolve a dispute between parties.

Question 62

Q

Forensic Accounting

Litigation services pertain to actual or potential proceedings, legal or regulatory, before a trier of facts to resolve a dispute between p_____s.

Answer

A

Forensic Accounting

Litigation services pertain to actual or potential proceedings, legal or regulatory, before a trier of facts to resolve a dispute between parties.

Litigation services include expert witness services, litigation consulting services, and other related services.

Question 63

Q

Forensic Accounting

Litigation services include e______ witness services, litigation consulting services, and other related services.

Answer

A

Forensic Accounting

Litigation services pertain to actual or potential proceedings, legal or regulatory, before a trier of facts to resolve a dispute between parties.

Litigation services include expert witness services, litigation consulting services, and other related services.

Question 64

Q

Forensic Accounting

Litigation services include expert w____s services, litigation consulting services, and other related services.

Answer

A

Forensic Accounting

Litigation services pertain to actual or potential proceedings, legal or regulatory, before a trier of facts to resolve a dispute between parties.

Litigation services include expert witness services, litigation consulting services, and other related services.

Answer 65

A

Forensic Accounting

Litigation services pertain to actual or potential proceedings, legal or regulatory, before a trier of facts to resolve a dispute between parties.

Litigation services include expert witness services, litigation consulting services, and other related services.

Answer 66

A

Forensic Accounting

Litigation services pertain to actual or potential proceedings, legal or regulatory, before a trier of facts to resolve a dispute between parties.

Litigation services include expert witness services, litigation consulting services, and other related services.

Answer 67

A

Forensic Accounting

Litigation services include expert witness services, litigation consulting services, and other related services.

• In general, performing expert witness services increases the advocacy threat to an unacceptable level that could not be reduced to an acceptable level by safeguards.

Answer 68

A

Forensic Accounting

Litigation services include expert witness services, litigation consulting services, and other related services.

• In general, performing expert witness services increases the advocacy threat to an unacceptable level that could not be reduced to an acceptable level by safeguards.

Answer 69

A

Forensic Accounting

Litigation services include expert witness services, litigation consulting services, and other related services.

• In general, performing expert witness services increases the ADVOCACY threat to an unacceptable level that could not be reduced to an acceptable level by safeguards.

      o Threats would be at an acceptable level if the services were being performed for a large group of plaintiffs or defendants, including the client;

Answer 70

A

Forensic Accounting

Litigation services include expert witness services, litigation consulting services, and other related services.

• In general, performing expert witness services increases the ADVOCACY threat to an unacceptable level that could not be reduced to an acceptable level by safeguards.

      o Threats would be at an acceptable level if the services were being performed for a large group of plaintiffs or defendants, including the client;

Answer 71

A

Forensic Accounting

Litigation services include expert witness services, litigation consulting services, and other related services.

• In general, performing expert witness services increases the ADVOCACY threat to an unacceptable level that could not be reduced to an acceptable level by safeguards.

      o Threats would be at an acceptable level if the services were being performed for a large group of plaintiffs or defendants, including the client;

Answer 72

A

Forensic Accounting

Litigation services include expert witness services, litigation consulting services, and other related services.

• In general, performing expert witness services increases the ADVOCACY threat to an unacceptable level that could not be reduced to an acceptable level by safeguards.

      o Threats would be at an acceptable level if the services were being performed for a large group of plaintiffs or defendants, including the client;

Answer 73

A

Forensic Accounting

Litigation services include expert witness services, litigation consulting services, and other related services.

• In general, performing expert witness services increases the ADVOCACY threat to an unacceptable level that could not be reduced to an acceptable level by safeguards.

      o The clients make up less than 20% of the members of the group, no client is designated as lead plaintiff or defendant, and no client has sole decision-making authority to determine who will serve as expert witness.

Answer 74

A

Forensic Accounting

Litigation services include expert witness services, litigation consulting services, and other related services.

• In general, performing expert witness services increases the ADVOCACY threat to an unacceptable level that could not be reduced to an acceptable level by safeguards.

      o The clients make up less than 20% of the members of the group,

no client is designated as lead plaintiff or defendant, and

no client has sole decision-making authority to determine who will serve as expert witness.

Answer 75

A

Forensic Accounting

Litigation services include expert witness services, litigation consulting services, and other related services.

• In general, performing expert witness services increases the ADVOCACY threat to an unacceptable level that could not be reduced to an acceptable level by safeguards.

      o The clients make up less than 20% of the members of the group,

no client is designated as lead plaintiff or defendant, and

no client has sole decision-making authority to determine who will serve as expert witness.

Answer 76

A

o The clients make up less than 20% of the members of the group,

no client is designated as lead plaintiff or defendant, and

no client has sole decision-making authority to determine who will serve as expert witness.

Answer 77

A

o The clients make up less than 20% of the members of the group,

no client is designated as lead plaintiff or defendant, and

no client has sole decision-making authority to determine who will serve as expert witness.

Answer 78

A

o The clients make up less than 20% of the members of the group,

no client is designated as lead plaintiff or defendant, and

no client has sole decision-making authority to determine who will serve as expert witness.

Answer 79

A

o The clients make up less than 20% of the members of the group,

no client is designated as lead plaintiff or defendant, and

no client has sole decision-making authority to determine who will serve as expert witness.

Answer 80

A

o The clients make up less than 20% of the members of the group,

no client is designated as lead plaintiff or defendant, and

no client has sole decision-making authority to determine who will serve as expert witness.

Answer 81

A

Forensic Accounting

Litigation services include expert witness services, litigation consulting services, and other related services.

• In general, performing expert witness services increases the ADVOCACY threat to an unacceptable level that could not be reduced to an acceptable level by safeguards.

      o Threats would be at an acceptable level if the services were being performed for a large group of plaintiffs or defendants, including the client; and

      o The clients make up less than 20% of the members of the group, no client is designated as lead plaintiff or defendant, and no client has sole decision-making authority to determine who will serve as expert witness.

Answer 82

A

Forensic Accounting

Litigation services include expert witness services, litigation consulting services, and other related services.

• Acting as a “fact witness” is NOT considered a nonattest service and would NOT impair an accountant’s independence

Answer 83

A

Forensic Accounting

Litigation services include expert witness services, litigation consulting services, and other related services.

• Acting as a “fact witness” is NOT considered a nonattest service and would NOT impair an accountant’s independence

Answer 84

A

Forensic Accounting

Litigation services include expert witness services, litigation consulting services, and other related services.

• Acting as a “fact witness” is NOT considered a nonattest service and would NOT impair an accountant’s independence

if the accountant responds to requests for providing an opinion regarding matters within the accountant’s expertise.

Answer 85

A

if the accountant responds to requests for providing an opinion regarding matters within the accountant’s expertise.

Answer 86

A

if the accountant responds to requests for providing an opinion regarding matters within the accountant’s expertise.

Answer 87

A

Forensic Accounting

Litigation services include expert witness services, litigation consulting services, and other related services.

• Acting as a “fact witness” is NOT considered a nonattest service and would NOT impair an accountant’s independence

if the accountant responds to requests for providing an opinion regarding matters within the accountant’s expertise.

Answer 88

A

Forensic Accounting

Litigation services include expert witness services, litigation consulting services, and other related services.

• Acting as a “fact witness” is NOT considered a nonattest service and would NOT impair an accountant’s independence

if the accountant responds to requests for providing an opinion regarding matters within the accountant’s expertise.

Answer 89

A

Forensic Accounting

Litigation services include expert witness services, litigation consulting services, and other related services.

• In general, performing expert witness services increases the advocacy threat to an unacceptable level that could not be reduced to an acceptable level by safeguards.

   o Threats would be at an acceptable level if the services were being performed for a large group of plaintiffs or defendants, including the client; and

   o The clients make up less than 20% of the members of the group, 
        no client is designated as lead plaintiff or defendant, and 
        no client has sole decision-making authority to determine who will serve as expert witness.

• Acting as a “fact witness” is NOT considered a nonattest service and would NOT impair an accountant’s independence

       if the accountant responds to requests for providing an opinion regarding matters within the accountant’s expertise.

Answer 90

A

Forensic Accounting

Litigation consulting services, in which the accountant provides advice about facts, issues, or strategy, elevate the advocacy and management participation threats to independence.

Answer 91

A

Forensic Accounting

Litigation consulting services, in which the accountant provides advice about facts, issues, or strategy, elevate the advocacy and management participation threats to independence.

Answer 92

A

Forensic Accounting

Litigation consulting services, in which the accountant provides advice about facts, issues, or strategy, elevate the advocacy and management participation threats to independence.

Answer 93

A

Forensic Accounting

Litigation consulting services, in which the accountant provides advice about facts, issues, or strategy, elevate the advocacy and management participation threats to independence.

Answer 94

A

Forensic Accounting

Litigation consulting services, in which the accountant provides advice about facts, issues, or strategy, elevate the advocacy and management participation threats to independence.

Answer 95

A

Forensic Accounting

Litigation consulting services, in which the accountant provides advice about facts, issues, or strategy, elevate the advocacy and management participation threats to independence.

Answer 96

A

Forensic Accounting

Litigation consulting services, in which the accountant provides advice about facts, issues, or strategy, elevate the advocacy and management participation threats to independence.

Answer 97

A

Forensic Accounting

Litigation consulting services, in which the accountant provides advice about facts, issues, or strategy, elevate the advocacy and management participation threats to independence.

Answer 98

A

Forensic Accounting

Litigation consulting services, in which the accountant provides advice about facts, issues, or strategy, elevate the advocacy and management participation threats to independence.

Provided that the general requirements for performing nonattest services have been met, threats would be at an acceptable level and independence would not be impaired.

Answer 99

A

Forensic Accounting

Litigation consulting services, in which the accountant provides advice about facts, issues, or strategy, elevate the advocacy and management participation threats to independence.

Provided that the general requirements for performing nonattest services have been met, threats would be at an acceptable level and independence would not be impaired.

Answer 100

A

Forensic Accounting

Litigation consulting services, in which the accountant provides advice about facts, issues, or strategy, elevate the advocacy and management participation threats to independence.

Provided that the general requirements for performing nonattest services have been met, threats would be at an acceptable level and independence would not be impaired.

Answer 101

A

Forensic Accounting

Litigation consulting services, in which the accountant provides advice about facts, issues, or strategy, elevate the advocacy and management participation threats to independence.

Provided that the general requirements for performing nonattest services have been met, threats would be at an acceptable level and independence would not be impaired.

Subsequent agreement to serve as an expert witness, however, elevates threats to an unacceptable level, which could not be reduced to an acceptable level through the application of safeguards.

Answer 102

A

Forensic Accounting

Subsequent agreement to serve as an expert witness, however, elevates threats to an unacceptable level, which could not be reduced to an acceptable level through the application of safeguards.

Answer 103

A

Forensic Accounting

Subsequent agreement to serve as an expert witness, however, elevates threats to an unacceptable level, which could not be reduced to an acceptable level through the application of safeguards.

Answer 104

A

Forensic Accounting

Subsequent agreement to serve as an expert witness, however, elevates threats to an unacceptable level, which could not be reduced to an acceptable level through the application of safeguards.

Answer 105

A

Forensic Accounting

Litigation consulting services, in which the accountant provides advice about facts, issues, or strategy, elevate the advocacy and management participation threats to independence.

Provided that the general requirements for performing nonattest services have been met, threats would be at an acceptable level and independence would not be impaired.

Subsequent agreement to serve as an expert witness, however, elevates threats to an unacceptable level, which could not be reduced to an acceptable level through the application of safeguards.

Answer 106

A

Forensic Accounting

The advocacy threat would also be raised to an unacceptable level, which could not be reduced to an acceptable level through the application of safeguards,

if the accountant is serving as a trier of fact, special master, court-appointed expert, or arbitrator in a matter involving a client.

Answer 107

A

Forensic Accounting

The advocacy threat would also be raised to an unacceptable level, which could not be reduced to an acceptable level through the application of safeguards,

if the accountant is serving as a trier of fact, special master, court-appointed expert, or arbitrator in a matter involving a client.

Answer 108

A

Forensic Accounting

The advocacy threat would also be raised to an unacceptable level, which could not be reduced to an acceptable level through the application of safeguards,

if the accountant is serving as a trier of fact, special master, court-appointed expert, or arbitrator in a matter involving a client.

Answer 109

A

Forensic Accounting

The advocacy threat would also be raised to an unacceptable level, which could not be reduced to an acceptable level through the application of safeguards,

if the accountant is serving as a trier of fact, special master, court-appointed expert, or arbitrator in a matter involving a client.

Answer 110

A

Forensic Accounting

The advocacy threat would also be raised to an unacceptable level, which could not be reduced to an acceptable level through the application of safeguards,

if the accountant is serving as a trier of fact, special master, court-appointed expert, or arbitrator in a matter involving a client.

Answer 111

A

Forensic Accounting

Threats, on the other hand, would be at an acceptable level

if the accountant agrees to serve as a mediator in a circumstance where the accountant is facilitating negotiations in which the parties are reaching their own agreement.

Answer 112

A

Forensic Accounting

Threats, on the other hand, would be at an acceptable level

if the accountant agrees to serve as a mediator in a circumstance where the accountant is facilitating negotiations in which the parties are reaching their own agreement.

Answer 113

A

Forensic Accounting

Threats, on the other hand, would be at an acceptable level

if the accountant agrees to serve as a mediator in a circumstance where the accountant is facilitating negotiations in which the parties are reaching their own agreement.

Answer 114

A

Forensic Accounting

Threats, on the other hand, would be at an acceptable level

if the accountant agrees to serve as a mediator in a circumstance where the accountant is facilitating negotiations in which the parties are reaching their own agreement.

Answer 115

A

Forensic Accounting

Threats, on the other hand, would be at an acceptable level

if the accountant agrees to serve as a mediator in a circumstance where the accountant is facilitating negotiations in which the parties are reaching their own agreement.

Answer 116

A

Forensic Accounting

The advocacy threat would also be raised to an unacceptable level, which could not be reduced to an acceptable level through the application of safeguards,

if the accountant is serving as a trier of fact, special master, court-appointed expert, or arbitrator in a matter involving a client.

Threats, on the other hand, would be at an acceptable level

if the accountant agrees to serve as a mediator in a circumstance where the accountant is facilitating negotiations in which the parties are reaching their own agreement.

Answer 117

A

Information Systems Design, Implementation, or Integration

Performing information systems design, implementation, or integration services affect the management participation and self-review threats to the accountant’s independence.

Answer 118

A

Information Systems Design, Implementation, or Integration

Performing information systems design, implementation, or integration services affect the management participation and self-review threats to the accountant’s independence.

Answer 119

A

Information Systems Design, Implementation, or Integration

Performing information systems design, implementation, or integration services affect the management participation and self-review threats to the accountant’s independence.

Answer 120

A

Information Systems Design, Implementation, or Integration

Performing information systems design, implementation, or integration services affect the management participation and self-review threats to the accountant’s independence.

Answer 121

A

Information Systems Design, Implementation, or Integration

Performing information systems design, implementation, or integration services affect the management participation and self-review threats to the accountant’s independence.

Answer 122

A

Information Systems Design, Implementation, or Integration

Performing information systems design, implementation, or integration services affect the management participation and self-review threats to the accountant’s independence.

Answer 123

A

Information Systems Design, Implementation, or Integration

Performing information systems design, implementation, or integration services affect the management participation and self-review threats to the accountant’s independence.

Answer 124

A

Information Systems Design, Implementation, or Integration

Performing information systems design, implementation, or integration services affect the management participation and self-review threats to the accountant’s independence.

Answer 125

A

Information Systems Design, Implementation, or Integration

Performing information systems design, implementation, or integration services affect the management participation and self-review threats to the accountant’s independence.

Threats would not be elevated to an unacceptable level

if the accountant performs any of the following services (A CPA may):

• Installation or integration of a client’s financial information system that was designed or developed by parties other than the accountant;

Answer 126

A

• Installation or integration of a client’s financial information system that was designed or developed by parties other than the accountant;

Answer 127

A

• Installation or integration of a client’s financial information system that was designed or developed by parties other than the accountant;

Answer 128

A

• Installation or integration of a client’s financial information system that was designed or developed by parties other than the accountant;

Answer 129

A

• Installation or integration of a client’s financial information system that was designed or developed by parties other than the accountant;

Answer 130

A

Information Systems Design, Implementation, or Integration

Performing information systems design, implementation, or integration services affect the management participation and self-review threats to the accountant’s independence.

Threats would not be elevated to an unacceptable level

if the accountant performs any of the following services (A CPA may):

• Assisting the client in establishing a chart of accounts and formats for financial statements in the client’s financial information system;

Answer 131

A

Information Systems Design, Implementation, or Integration

Threats would not be elevated to an unacceptable level

if the accountant performs any of the following services (A CPA may):

• Assisting the client in establishing a chart of accounts and formats for financial statements in the client’s financial information system;

Answer 132

A

• Assisting the client in establishing a chart of accounts and formats for financial statements in the client’s financial information system;

Answer 133

A

• Assisting the client in establishing a chart of accounts and formats for financial statements in the client’s financial information system;

Answer 134

A

• Assisting the client in establishing a chart of accounts and formats for financial statements in the client’s financial information system;

Answer 135

A

Information Systems Design, Implementation, or Integration

Threats would not be elevated to an unacceptable level

if the accountant performs any of the following services (A CPA may):

• Designing, developing, installing, or integrating an information system that is not related to the client’s accounting records or financial statements;

Answer 136

A

• Designing, developing, installing, or integrating an information system that is not related to the client’s accounting records or financial statements;

Answer 137

A

• Designing, developing, installing, or integrating an information system that is not related to the client’s accounting records or financial statements;

Answer 138

A

• Designing, developing, installing, or integrating an information system that is not related to the client’s accounting records or financial statements;

Answer 139

A

• Designing, developing, installing, or integrating an information system that is not related to the client’s accounting records or financial statements;

Answer 140

A

• Designing, developing, installing, or integrating an information system that is not related to the client’s accounting records or financial statements;

Answer 141

A

• Designing, developing, installing, or integrating an information system that is not related to the client’s accounting records or financial statements;

Answer 142

A

• Designing, developing, installing, or integrating an information system that is not related to the client’s accounting records or financial statements;

Answer 143

A

Information Systems Design, Implementation, or Integration

Threats would not be elevated to an unacceptable level

if the accountant performs any of the following services (A CPA may):

• Training or instructing client employees in regard to the information and control systems;

Answer 144

A

• Training or instructing client employees in regard to the information and control systems;

Answer 145

A

• Training or instructing client employees in regard to the information and control systems;

Answer 146

A

• Training or instructing client employees in regard to the information and control systems;

Answer 147

A

• Training or instructing client employees in regard to the information and control systems;

Answer 148

A

Information Systems Design, Implementation, or Integration

Threats would not be elevated to an unacceptable level

if the accountant performs any of the following services (A CPA may):

• Performing 
network maintenance, 
updating virus protection, 
applying routine updates and patches, or 
configuring user settings 
based on requests from management.

Answer 149

A

• Performing 
network maintenance, 
updating virus protection, 
applying routine updates and patches, or 
configuring user settings 
based on requests from management.

Answer 150

A

• Performing 
network maintenance, 
updating virus protection, 
applying routine updates and patches, or 
configuring user settings 
based on requests from management.

Answer 151

A

• Performing 
network maintenance, 
updating virus protection, 
applying routine updates and patches, or 
configuring user settings 
based on requests from management.

Answer 152

A

• Performing 
network maintenance, 
updating virus protection, 
applying routine updates and patches, or 
configuring user settings 
based on requests from management.

Answer 153

A

• Performing 
network maintenance, 
updating virus protection, 
applying routine updates and patches, or 
configuring user settings 
based on requests from management.

Answer 154

A

• Performing 
network maintenance, 
updating virus protection, 
applying routine updates and patches, or 
configuring user settings 
based on requests from management.

Answer 155

A

Information Systems Design, Implementation, or Integration

Performing information systems design, implementation, or integration services affect the management participation and self-review threats to the accountant’s independence.

Threats would not be elevated to an unacceptable level
if the accountant performs any of the following services (A CPA may):

Installation or integration of a client’s financial information system that was designed or developed by parties other than the accountant;
Assisting the client in establishing a chart of accounts and formats for financial statements in the client’s financial information system;
Designing, developing, installing, or integrating an information system that is not related to the client’s accounting records or financial statements;
Training or instructing client employees in regard to the information and control systems; or
Performing network maintenance, updating virus protection, applying routine updates and patches, or configuring user settings based on requests from management.

Answer 156

A

Information Systems Design, Implementation, or Integration

Performing information systems design, implementation, or integration services affect the management participation and self-review threats to the accountant’s independence.

Threats would not be elevated to an unacceptable level
if the accountant performs any of the following services (A CPA may):

Installation or integration of a client’s financial information system that was designed or developed by parties other than the accountant;
Assisting the client in establishing a chart of accounts and formats for financial statements in the client’s financial information system;
Designing, developing, installing, or integrating an information system that is not related to the client’s accounting records or financial statements;
Training or instructing client employees in regard to the information and control systems; or
Performing network maintenance, updating virus protection, applying routine updates and patches, or configuring user settings based on requests from management.

Answer 157

A

if the accountant (Cannot do):

• Designs or develops the client’s financial information system;

Answer 158

A

if the accountant (Cannot do):

• Designs or develops the client’s financial information system;

Answer 159

A

Information Systems Design, Implementation, or Integration

Threats to independence would be at an unacceptable level and would not be able to be reduced to an acceptable level by safeguards

if the accountant (Cannot do):

• Makes modifications to source code related to the client’s financial information system, unless inconsequential;

Answer 160

A

if the accountant (Cannot do):

• Makes modifications to source code related to the client’s financial information system, unless inconsequential;

Answer 161

A

if the accountant (Cannot do):

• Makes modifications to source code related to the client’s financial information system, unless inconsequential;

Answer 162

A

if the accountant (Cannot do):

• Makes modifications to source code related to the client’s financial information system, unless inconsequential;

Answer 163

A

Information Systems Design, Implementation, or Integration

Threats to independence would be at an unacceptable level and would not be able to be reduced to an acceptable level by safeguards

if the accountant (Cannot do):

Supervises client personnel in the operation of the client’s financial information system; or
Operates a client network.

Answer 164

A

if the accountant (Cannot do):

Supervises client personnel in the operation of the client’s financial information system; or
Operates a client network.

Answer 165

A

if the accountant (Cannot do):

Supervises client personnel in the operation of the client’s financial information system; or
Operates a client network.

Answer 166

A

if the accountant (Cannot do):

Supervises client personnel in the operation of the client’s financial information system; or
Operates a client network.

Answer 167

A

Information Systems Design, Implementation, or Integration

Threats to independence would be at an unacceptable level and would not be able to be reduced to an acceptable level by safeguards

if the accountant (Cannot do):

Designs or develops the client’s financial information system;
Makes modifications to source code related to the client’s financial information system, unless inconsequential;
Supervises client personnel in the operation of the client’s financial information system; or
Operates a client network.

Answer 168

A

Internal Audit

Internal audit services consist of assisting the client in its internal audit, or internal control activities.

Answer 169

A

Internal Audit

Internal audit services consist of assisting the client in its internal audit, or internal control activities.

Answer 170

A

Internal Audit

Internal audit services consist of assisting the client in its internal audit, or internal control activities.

Answer 171

A

Internal Audit

Internal audit services consist of assisting the client in its internal audit, or internal control activities.

Answer 172

A

Internal Audit

Internal audit services consist of assisting the client in its internal audit, or internal control activities.

Answer 173

A

Internal Audit

Internal audit services consist of assisting the client in its internal audit, or internal control activities.

If a client outsources its internal control activities to the accountant,

such that the accountant essentially manages the client’s internal audit activities, including accepting responsibility for the design, implementation, and maintenance (DIM) of internal control,

threats to independence would not be at an acceptable level and applying safeguards could not reduce threats to an acceptable level.

Answer 174

A

Internal Audit

Internal audit services consist of assisting the client in its internal audit, or internal control activities.

If a client outsources its internal control activities to the accountant,

such that the accountant essentially manages the client’s internal audit activities, including accepting responsibility for the design, implementation, and maintenance (DIM) of internal control,

threats to independence would not be at an acceptable level and applying safeguards could not reduce threats to an acceptable level.

Answer 175

A

Internal Audit

Internal audit services consist of assisting the client in its internal audit, or internal control activities.

If a client outsources its internal control activities to the accountant,

such that the accountant essentially manages the client’s internal audit activities, including accepting responsibility for the design, implementation, and maintenance (DIM) of internal control,

threats to independence would not be at an acceptable level and applying safeguards could not reduce threats to an acceptable level.

Answer 176

A

Internal Audit

Internal audit services consist of assisting the client in its internal audit, or internal control activities.

If a client outsources its internal control activities to the accountant,

such that the accountant essentially manages the client’s internal audit activities, including accepting responsibility for the design, implementation, and maintenance (DIM) of internal control,

threats to independence would not be at an acceptable level and applying safeguards could not reduce threats to an acceptable level.

Answer 177

A

Internal Audit

Internal audit services consist of assisting the client in its internal audit, or internal control activities.

If a client outsources its internal control activities to the accountant,

such that the accountant essentially manages the client’s internal audit activities, including accepting responsibility for the design, implementation, and maintenance (DIM) of internal control,

threats to independence would not be at an acceptable level and applying safeguards could not reduce threats to an acceptable level.

Answer 178

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Designates someone to be responsible for the internal audit function who possesses suitable skills, knowledge, and experience, preferably from within senior management;

Answer 179

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Designates someone to be responsible for the internal audit function who possesses suitable skills, knowledge, and experience, preferably from within senior management;

Answer 180

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Designates someone to be responsible for the internal audit function who possesses suitable skills, knowledge, and experience, preferably from within senior management;

Answer 181

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Designates someone to be responsible for the internal audit function who possesses suitable skills, knowledge, and experience, preferably from within senior management;

Answer 182

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Designates someone to be responsible for the internal audit function who possesses suitable skills, knowledge, and experience, preferably from within senior management;

Answer 183

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Designates someone to be responsible for the internal audit function who possesses suitable skills, knowledge, and experience, preferably from within senior management;

Answer 184

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Designates someone to be responsible for the internal audit function who possesses suitable skills, knowledge, and experience, preferably from within senior management;

Answer 185

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Designates someone to be responsible for the internal audit function who possesses suitable skills, knowledge, and experience, preferably from within senior management;

Answer 186

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Makes all decisions regarding the scope, risk, and frequency of internal control activities, including those performed by the CPA or by others;

Answer 187

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Makes all decisions regarding the scope, risk, and frequency of internal control activities, including those performed by the CPA or by others;

Answer 188

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Makes all decisions regarding the scope, risk, and frequency of internal control activities, including those performed by the CPA or by others;

Answer 189

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Makes all decisions regarding the scope, risk, and frequency of internal control activities, including those performed by the CPA or by others;

Answer 190

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Makes all decisions regarding the scope, risk, and frequency of internal control activities, including those performed by the CPA or by others;

Answer 191

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Evaluates all findings and results that emanate from the internal audit activities, whether performed by the accountant or others;

Answer 192

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Evaluates all findings and results that emanate from the internal audit activities, whether performed by the accountant or others;

Answer 193

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Evaluates all findings and results that emanate from the internal audit activities, whether performed by the accountant or others;

Answer 194

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Evaluates all findings and results that emanate from the internal audit activities, whether performed by the accountant or others;

Answer 195

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Evaluate the adequacy of the procedures performed and the results of those procedures.

Answer 196

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Evaluate the adequacy of the procedures performed and the results of those procedures.

Answer 197

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Evaluate the adequacy of the procedures performed and the results of those procedures.

Answer 198

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Evaluate the adequacy of the procedures performed and the results of those procedures.

Answer 199

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

• Evaluate the adequacy of the procedures performed and the results of those procedures.

Answer 200

A

Internal Audit

Other than outsourcing services, the CPA may assist the client in performing financial and operational internal audit activities provided, to the accountant’s satisfaction, management:

Designates someone to be responsible for the internal audit function who possesses suitable skills, knowledge, and experience, preferably from within senior management;
Makes all decisions regarding the scope, risk, and frequency of internal control activities, including those performed by the CPA or by others;
Evaluates all findings and results that emanate from the internal audit activities, whether performed by the accountant or others; and
Evaluate the adequacy of the procedures performed and the results of those procedures.

Answer 201

A

Internal Audit

Activities that the CPA may not perform without raising threats to an unacceptable level, without the ability to reduce them to an acceptable level by applying safeguards, include:

• Performing ongoing evaluations or control activities that affect either the execution of transactions or ensuring that they are properly executed and accounted for;

Answer 202

A

Internal Audit

Activities that the CPA may not perform include:

• Performing ongoing evaluations or control activities that affect either the execution of transactions or ensuring that they are properly executed and accounted for;

Answer 203

A

Internal Audit

Activities that the CPA may not perform include:

• Performing ongoing evaluations or control activities that affect either the execution of transactions or ensuring that they are properly executed and accounted for;

Answer 204

A

Internal Audit

Activities that the CPA may not perform include:

• Performing ongoing evaluations or control activities that affect either the execution of transactions or ensuring that they are properly executed and accounted for;

Answer 205

A

Internal Audit

Activities that the CPA may not perform include:

• Performing ongoing evaluations or control activities that affect either the execution of transactions or ensuring that they are properly executed and accounted for;

Answer 206

A

Internal Audit

Activities that the CPA may not perform include:

• Performing routine activities related to an ongoing compliance or quality control function in connection with client operating or production processes;

Answer 207

A

Internal Audit

Activities that the CPA may not perform include:

• Performing routine activities related to an ongoing compliance or quality control function in connection with client operating or production processes;

Answer 208

A

Internal Audit

Activities that the CPA may not perform include:

• Performing routine activities related to an ongoing compliance or quality control function in connection with client operating or production processes;

Answer 209

A

Internal Audit

Activities that the CPA may not perform include:

• Performing routine activities related to an ongoing compliance or quality control function in connection with client operating or production processes;

Answer 210

A

Internal Audit

Activities that the CPA may not perform include:

• Performing routine activities related to an ongoing compliance or quality control function in connection with client operating or production processes;

Answer 211

A

Internal Audit

Activities that the CPA may not perform include:

• Performing routine operations built into the client’s business process, such as separate evaluations on the effectiveness of specific significant controls;

Answer 212

A

Internal Audit

Activities that the CPA may not perform include:

• Performing routine operations built into the client’s business process, such as separate evaluations on the effectiveness of specific significant controls;

Answer 213

A

Internal Audit

Activities that the CPA may not perform include:

• Performing routine operations built into the client’s business process,

such as separate evaluations on the effectiveness of specific significant controls;

Answer 214

A

Internal Audit

Activities that the CPA may not perform include:

• Performing routine operations built into the client’s business process, such as separate evaluations on the effectiveness of specific significant controls;

Answer 215

A

Internal Audit

Activities that the CPA may not perform include:

• Performing routine operations built into the client’s business process, such as separate evaluations on the effectiveness of specific significant controls;

Answer 216

A

Internal Audit

Activities that the CPA may not perform include:

• Performing routine operations built into the client’s business process, such as separate evaluations on the effectiveness of specific significant controls;

Answer 217

A

Internal Audit

Activities that the CPA may not perform include:

• Providing the primary basis for management’s assertions regarding the design or operating effectiveness of internal controls;

Answer 218

A

Internal Audit

Activities that the CPA may not perform include:

• Providing the primary basis for management’s assertions regarding the design or operating effectiveness of internal controls;

Answer 219

A

Internal Audit

Activities that the CPA may not perform include:

• Providing the primary basis for management’s assertions regarding the design or operating effectiveness of internal controls;

Answer 220

A

Internal Audit

Activities that the CPA may not perform include:

• Providing the primary basis for management’s assertions regarding the design or operating effectiveness of internal controls;

Answer 221

A

Internal Audit

Activities that the CPA may not perform include:

• Determining which recommendations for the improvement of the client’s internal control system should be implemented, if any;

Answer 222

A

Internal Audit

Activities that the CPA may not perform include:

• Determining which recommendations for the improvement of the client’s internal control system should be implemented, if any;

Answer 223

A

Internal Audit

Activities that the CPA may not perform include:

• Determining which recommendations for the improvement of the client’s internal control system should be implemented, if any;

Answer 224

A

Internal Audit

Activities that the CPA may not perform include:

• Determining which recommendations for the improvement of the client’s internal control system should be implemented, if any;

Answer 225

A

Internal Audit

Activities that the CPA may not perform include:

Reporting to the board of directors on behalf of management in regard to the internal control function;
Taking responsibility for, or approving, the internal audit work plan, including scope, priorities, and frequency of performance; or
Taking a management role in relation to the client.

Answer 226

A

Internal Audit

Activities that the CPA may not perform include:

Reporting to the board of directors on behalf of management in regard to the internal control function;
Taking responsibility for, or approving, the internal audit work plan, including scope, priorities, and frequency of performance; or
Taking a management role in relation to the client.

Answer 227

A

Internal Audit

Activities that the CPA may not perform include:

Reporting to the board of directors on behalf of management in regard to the internal control function;
Taking responsibility for, or approving, the internal audit work plan, including scope, priorities, and frequency of performance; or
Taking a management role in relation to the client.

Answer 228

A

Internal Audit

Activities that the CPA may not perform include:

Reporting to the board of directors on behalf of management in regard to the internal control function;
Taking responsibility for, or approving, the internal audit work plan, including scope, priorities, and frequency of performance; or
Taking a management role in relation to the client.

Answer 229

A

Internal Audit

Activities that the CPA may not perform without raising threats to an unacceptable level, without the ability to reduce them to an acceptable level by applying safeguards, include:

Performing ongoing evaluations or control activities that affect either the execution of transactions or ensuring that they are properly executed and accounted for;
Performing routine activities related to an ongoing compliance or quality control function in connection with client operating or production processes;
Performing routine operations built into the client’s business process, such as separate evaluations on the effectiveness of specific significant controls;
Providing the primary basis for management’s assertions regarding the design or operating effectiveness of internal controls;
Determining which recommendations for the improvement of the client’s internal control system should be implemented, if any;
Reporting to the board of directors on behalf of management in regard to the internal control function;
Taking responsibility for, or approving, the internal audit work plan, including scope, priorities, and frequency of performance; or
Taking a management role in relation to the client.

Answer 230

A

Internal Audit

Evaluating whether components of a client’s internal control system have been put in place and are operating properly is part of the monitoring process.

Answer 231

A

Internal Audit

Evaluating whether components of a client’s internal control system have been put in place and are operating properly is part of the monitoring process.

Answer 232

A

Internal Audit

Evaluating whether components of a client’s internal control system have been put in place and are operating properly is part of the monitoring process.

Ongoing evaluations that are incorporated in the client’s system are the responsibility of management

and would raise the management participation threat to an unacceptable level that could not be adequately reduced by the application of safeguards.

Answer 233

A

Internal Audit

Evaluating whether components of a client’s internal control system have been put in place and are operating properly is part of the monitoring process.

Ongoing evaluations that are incorporated in the client’s system are the responsibility of management and would raise the management participation threat to an unacceptable level that could not be adequately reduced by the application of safeguards.

The performance of separate evaluations, applied periodically to determine if controls are present and functioning, do not create a significant management participation threat to independence.

Answer 234

A

The performance of separate evaluations, applied periodically to determine if controls are present and functioning, do not create a significant management participation threat to independence.

Answer 235

A

The performance of separate evaluations, applied periodically to determine if controls are present and functioning, do not create a significant management participation threat to independence.

Answer 236

A

Internal Audit

Because of the nature of internal audit services, the accountant will be required to apply judgment in determining when threats have been raised to an unacceptable level

and whether or not they can be reduced to an acceptable level through the application of safeguards.

Answer 237

A

Internal Audit

Because of the nature of internal audit services, the accountant will be required to apply judgment in determining when threats have been raised to an unacceptable level

and whether or not they can be reduced to an acceptable level through the application of safeguards.

Answer 238

A

Internal Audit

Performing services that are normally associated with the attest function,

are not internal audit services
and do not impair the accountant’s independence,

even when they exceed the scope of the accountant’s responsibilities for the nature of attest service being performed for the client.

Answer 239

A

Internal Audit

Performing services that are normally associated with the attest function,

are not internal audit services
and do not impair the accountant’s independence,

even when they exceed the scope of the accountant’s responsibilities for the nature of attest service being performed for the client.

Answer 240

A

Internal Audit

Performing services that are normally associated with the attest function,

such as confirming accounts receivable or analyzing fluctuations in account balances,

are not internal audit services

and do not impair the accountant’s independence,

even when they exceed the scope of the accountant’s responsibilities for the nature of attest service being performed for the client.

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AUD 2 Professional Responsibilities and Ethics 4 Flashcards

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