AUD 2 Professional Responsibilities and Ethics 5 Flashcards

Question 1

Q

When a CPA provides investment advisory or management services, the m_________ p___________ and self-review threats are affected.

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

Question 2

Q

When a CPA provides investment advisory or management services, the management participation and ____ - ______ threats are affected.

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

Question 3

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Apply client c_____a, such as rate of return, to recommend an allocation of funds among various investments or asset classes;

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Apply client criteria, such as rate of return, to recommend an allocation of funds among various investments or asset classes;

Question 4

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Apply c____ criteria, such as rate of return, to recommend an allocation of funds among various investments or asset classes;

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Apply client criteria, such as rate of return, to recommend an allocation of funds among various investments or asset classes;

Question 5

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Apply client criteria, such as rate of return, to rec_______d an allocation of funds among various investments or asset classes;

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Apply client criteria, such as rate of return, to recommend an allocation of funds among various investments or asset classes;

Question 6

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Maintain records of the client’s por____o, prepare reports, and provide analysis of investments in comparison with third party benchmarks;

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Maintain records of the client’s portfolio, prepare reports, and provide analysis of investments in comparison with third party benchmarks;

Question 7

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Maintain re____s of the client’s portfolio, prepare reports, and provide analysis of investments in comparison with third party benchmarks;

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Maintain records of the client’s portfolio, prepare reports, and provide analysis of investments in comparison with third party benchmarks;

Question 8

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Maintain records of the client’s portfolio, prepare r_____s, and provide analysis of investments in comparison with third party benchmarks;

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Maintain records of the client’s portfolio, prepare reports, and provide analysis of investments in comparison with third party benchmarks;

Question 9

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Maintain records of the client’s portfolio, prepare reports, and provide an_____s of investments in comparison with third party benchmarks;

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Maintain records of the client’s portfolio, prepare reports, and provide analysis of investments in comparison with third party benchmarks;

Question 10

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Maintain records of the client’s portfolio, prepare reports, and provide analysis of in_________s in comparison with third party benchmarks;

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Maintain records of the client’s portfolio, prepare reports, and provide analysis of investments in comparison with third party benchmarks;

Question 11

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Maintain records of the client’s portfolio, prepare reports, and provide analysis of investments in comparison with third party be_________s;

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Maintain records of the client’s portfolio, prepare reports, and provide analysis of investments in comparison with third party benchmarks;

Question 12

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Ev_____ the management of the portfolio to assess if managers are following the client’s investment policy guidelines,

meeting the client’s investment objectives,

and conforming to the client’s parameters,

including its risk tolerance;

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Evaluate the management of the portfolio to assess if managers are following the client’s investment policy guidelines,

meeting the client’s investment objectives,

and conforming to the client’s parameters,

including its risk tolerance;

Question 13

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Evaluate the m__________ of the portfolio to assess if m_______s are following the client’s investment policy guidelines,

meeting the client’s investment objectives,

and conforming to the client’s parameters,

including its risk tolerance;

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Evaluate the management of the portfolio to assess if managers are following the client’s investment policy guidelines,

meeting the client’s investment objectives,

and conforming to the client’s parameters,

including its risk tolerance;

Question 14

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Evaluate the management of the po_____o to assess if managers are following the client’s investment policy guidelines,

meeting the client’s investment objectives,

and conforming to the client’s parameters,

including its risk tolerance;

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Evaluate the management of the portfolio to assess if managers are following the client’s investment policy guidelines,

meeting the client’s investment objectives,

and conforming to the client’s parameters,

including its risk tolerance;

Question 15

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Evaluate the management of the portfolio to assess if managers are following the client’s investment policy guidelines,

meeting the client’s investment ob______s,

and conforming to the client’s parameters,

including its risk tolerance;

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Evaluate the management of the portfolio to assess if managers are following the client’s investment policy guidelines,

meeting the client’s investment objectives,

and conforming to the client’s parameters,

including its risk tolerance;

Question 16

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Evaluate the management of the portfolio to assess if managers are following the client’s investment policy guidelines,

meeting the client’s investment objectives,

and conforming to the client’s parameters,

including its risk to________;

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Evaluate the management of the portfolio to assess if managers are following the client’s investment policy guidelines,

meeting the client’s investment objectives,

and conforming to the client’s parameters,

including its risk tolerance;

Question 17

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Evaluate the management of the portfolio to assess if managers are following the client’s investment policy guidelines,

meeting the client’s investment objectives,

and conforming to the client’s par_______s,

including its risk tolerance;

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Evaluate the management of the portfolio to assess if managers are following the client’s investment policy guidelines,

meeting the client’s investment objectives,

and conforming to the client’s parameters,

including its risk tolerance;

Question 18

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Evaluate the management of the portfolio to assess if managers are following the client’s in________ policy guidelines,

meeting the client’s investment objectives,

and conforming to the client’s parameters,

including its risk tolerance;

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Evaluate the management of the portfolio to assess if managers are following the client’s investment policy guidelines,

meeting the client’s investment objectives,

and conforming to the client’s parameters,

including its risk tolerance;

Question 19

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Submit to a broker-dealer the client’s in________ selection

provided the client has consented to the submission and authorized the broker-dealer to execute the transaction.

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Submit to a broker-dealer the client’s investment selection

provided the client has consented to the submission and authorized the broker-dealer to execute the transaction.

Question 20

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Submit to a broker-dealer the client’s investment selection

provided the client has con____ed to the submission and authorized the broker-dealer to execute the transaction.

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Submit to a broker-dealer the client’s investment selection

provided the client has consented to the submission and authorized the broker-dealer to execute the transaction.

Question 21

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Submit to a broker-dealer the client’s investment selection

provided the client has consented to the sub_____n and authorized the broker-dealer to execute the transaction.

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Submit to a broker-dealer the client’s investment selection

provided the client has consented to the submission and authorized the broker-dealer to execute the transaction.

Question 22

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Submit to a broker-dealer the client’s investment selection

provided the client has consented to the submission and au_______ed the broker-dealer to execute the transaction.

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Submit to a broker-dealer the client’s investment selection

provided the client has consented to the submission and authorized the broker-dealer to execute the transaction.

Question 23

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Submit to a broker-dealer the client’s investment selection

provided the client has consented to the submission and authorized the broker-dealer to execute the tra_______.

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Submit to a broker-dealer the client’s investment selection

provided the client has consented to the submission and authorized the broker-dealer to execute the transaction.

Question 24

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Submit to a b____er - d___er the client’s investment selection

provided the client has consented to the submission and authorized the b____er - d___er to execute the transaction.

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

• Submit to a broker-dealer the client’s investment selection

provided the client has consented to the submission and authorized the broker-dealer to execute the transaction.

Question 25

Q

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

Apply client criteria, such as rate of return, to recommend an allocation of funds among various investments or asset classes;
Maintain records of the client’s portfolio, prepare reports, and provide analysis of investments in comparison with third party benchmarks;
Evaluate the management of the portfolio to assess if managers are following the client’s investment policy guidelines, meeting the client’s investment objectives, and conforming to the client’s parameters, including its risk tolerance;
Submit to a broker-dealer the client’s investment selection provided the client has consented to the submission and authorized the broker-dealer to execute the transaction.

Answer

A

Investment Advisory or Management

When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.

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

Apply client criteria, such as rate of return, to recommend an allocation of funds among various investments or asset classes;
Maintain records of the client’s portfolio, prepare reports, and provide analysis of investments in comparison with third party benchmarks;
Evaluate the management of the portfolio to assess if managers are following the client’s investment policy guidelines, meeting the client’s investment objectives, and conforming to the client’s parameters, including its risk tolerance;
Submit to a broker-dealer the client’s investment selection provided the client has consented to the submission and authorized the broker-dealer to execute the transaction.

Question 26

Q

Investment Advisory or Management

Threats would be raised to an unacceptable level
if the accountant (Cannot do):

Makes in_________ decisions on behalf of the client’
Has discretionary authority over client in________s;

Answer

A

Investment Advisory or Management

Threats, however, 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):

Makes investment decisions on behalf of the client’
Has discretionary authority over client investments;

Question 27

Q

Investment Advisory or Management

Threats would be raised to an unacceptable level
if the accountant (Cannot do):

Makes investment d________s on behalf of the client’
Has discretionary authority over c____ investments;

Answer

A

Investment Advisory or Management

Threats, however, 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):

Makes investment decisions on behalf of the client’
Has discretionary authority over client investments;

Question 28

Q

Investment Advisory or Management

Threats would be raised to an unacceptable level
if the accountant (Cannot do):

Makes investment decisions on behalf of the client’
Has discretionary au_____y over client investments;

Answer

A

Investment Advisory or Management

the accountant (Cannot do):

Makes investment decisions on behalf of the client’
Has discretionary authority over client investments;

Question 29

Q

Investment Advisory or Management

Threats would be raised to an unacceptable level
if the accountant (Cannot do):

Ma__s investment decisions on behalf of the client’
Has disc______ry authority over client investments;

Answer

A

Investment Advisory or Management

the accountant (Cannot do):

Makes investment decisions on behalf of the client’
Has discretionary authority over client investments;

Question 30

Q

Investment Advisory or Management

Threats would be raised to an unacceptable level
if the accountant (Cannot do):

Executes a tr_______n to trade a client’s investments; or
Has cu_____y of client assets, even temporarily.

Answer

A

Investment Advisory or Management

Threats, however, 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):

Executes a transaction to trade a client’s investments; or
Has custody of client assets, even temporarily.

Question 31

Q

Investment Advisory or Management

Threats would be raised to an unacceptable level
if the accountant (Cannot do):

Executes a transaction to trade a client’s in_________s; or
Has custody of client assets, even te________y.

Answer

A

Investment Advisory or Management

the accountant (Cannot do):

Executes a transaction to trade a client’s investments; or
Has custody of client assets, even temporarily.

Question 32

Q

Investment Advisory or Management

Threats would be raised to an unacceptable level
if the accountant (Cannot do):

Ex_____s a transaction to trade a client’s investments; or
Has custody of client as___s, even temporarily.

Answer

A

Investment Advisory or Management

the accountant (Cannot do):

Executes a transaction to trade a client’s investments; or
Has custody of client assets, even temporarily.

Question 33

Q

Investment Advisory or Management

Threats, however, 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):

Makes investment decisions on behalf of the client’
Has discretionary authority over client investments;
Executes a transaction to trade a client’s investments; or
Has custody of client assets, even temporarily.

Answer

A

Investment Advisory or Management

Threats, however, 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):

Makes investment decisions on behalf of the client’
Has discretionary authority over client investments;
Executes a transaction to trade a client’s investments; or
Has custody of client assets, even temporarily.

Question 34

Q

Tax Services

Tax services include:

Tax re___n preparation or transmittal;
Transmittal of a tax p_____t to a taxing authority
Signing and filing a tax re___n or having a power of attorney limited strictly to tax matters; and
Representing a client before a taxing authority in an administrative proceeding.

Answer

A

Tax Services

Tax services include:

Tax return preparation or transmittal;
Transmittal of a tax payment to a taxing authority
Signing and filing a tax return or having a power of attorney limited strictly to tax matters; and
Representing a client before a taxing authority in an administrative proceeding.

Question 35

Q

Tax Services

Tax services include:

Tax return pre________n or transmittal;
Transmittal of a tax payment to a taxing authority

• Signing and filing a tax return or
having a power of att____y limited strictly to tax matters; and

• Representing a client before a taxing authority in an administrative proceeding.

Answer

A

Tax Services

Tax services include:

Tax return preparation or transmittal;
Transmittal of a tax payment to a taxing authority

• Signing and filing a tax return or
having a power of attorney limited strictly to tax matters; and

• Representing a client before a taxing authority in an administrative proceeding.

Question 36

Q

Tax Services

Tax services include:

Tax return preparation or tra______l;
Tra______l of a tax payment to a taxing authority
Signing and filing a tax return or having a power of attorney limited strictly to tax matters; and
Representing a c____ before a taxing au_____y in an administrative proceeding.

Answer

A

Tax Services

Tax services include:

Tax return preparation or transmittal;
Transmittal of a tax payment to a taxing authority
Signing and filing a tax return or having a power of attorney limited strictly to tax matters; and
Representing a client before a taxing authority in an administrative proceeding.

Question 37

Q

Tax Services

Tax ser____s include:

Tax return preparation or transmittal;
Transmittal of a tax payment to a taxing authority
Signing and filing a tax return or having a power of attorney limited strictly to tax matters; and
Representing a client before a taxing authority in an administrative proceeding.

Answer

A

Tax Services

Tax services include:

Tax return preparation or transmittal;
Transmittal of a tax payment to a taxing authority
Signing and filing a tax return or having a power of attorney limited strictly to tax matters; and
Representing a client before a taxing authority in an administrative proceeding.

Question 38

Q

Tax Services

Preparing a tax return and transmitting the return and related payment to a taxing authority may create or increase the m_________ ___________ and ____ - _______ threats to independence.

Answer

A

Tax Services

Preparing a tax return and transmitting the return and related payment to a taxing authority may create or increase the management participation and self-review threats to independence.

Question 39

Q

Tax Services

Preparing a tax return and tra_____ing the return and related payment to a taxing authority may create or increase the management participation and self-review threats to independence.

Answer

A

Tax Services

Preparing a tax return and transmitting the return and related payment to a taxing authority may create or increase the management participation and self-review threats to independence.

Question 40

Q

Tax Services

Preparing a tax return and transmitting the return and related payment to a taxing authority may create or increase the management participation and self-review threats to independence.

In such circumstances, the accountant’s i__________ would NOT be impaired if the accountant does NOT have control or custody over client assets.

Answer

A

Tax Services

Preparing a tax return and transmitting the return and related payment to a taxing authority may create or increase the management participation and self-review threats to independence.

In such circumstances, the accountant’s independence would NOT be impaired if the accountant does NOT have control or custody over client assets.

Question 41

Q

Tax Services

Preparing a tax return and transmitting the return and related payment to a taxing authority may create or increase the management participation and self-review threats to independence.

In such circumstances, the accountant’s independence would NOT be impaired if the accountant does NOT have control or cu____y over client assets.

Answer

A

Tax Services

Preparing a tax return and transmitting the return and related payment to a taxing authority may create or increase the management participation and self-review threats to independence.

In such circumstances, the accountant’s independence would NOT be impaired if the accountant does NOT have control or custody over client assets.

Question 42

Q

Tax Services

In addition, the individual designated to o______e the tax services must REVIEW and APPROVE the tax return and related payments;

and if the return is required to be signed for filing, signs the tax return pr___ to it being transmitted by the accountant to the taxing authority.

Answer

A

Tax Services

In addition, the individual designated to oversee the tax services must REVIEW and APPROVE the tax return and related payments;

and if the return is required to be signed for filing, signs the tax return prior to it being transmitted by the accountant to the taxing authority.

Question 43

Q

Tax Services

In addition, the individual des_____ed to oversee the tax services must r_____ and a_______ the tax return and related payments;

and if the return is required to be signed for filing, signs the tax return prior to it being transmitted by the accountant to the taxing authority.

Answer

A

Tax Services

In addition, the individual designated to oversee the tax services must REVIEW and APPROVE the tax return and related payments;

and if the return is required to be signed for filing, signs the tax return prior to it being transmitted by the accountant to the taxing authority.

Question 44

Q

Tax Services

In addition, the individual designated to oversee the tax services m____ REVIEW and APPROVE the tax return and related p_____ts;

and if the return is required to be signed for filing, signs the tax return prior to it being transmitted by the accountant to the taxing authority.

Answer

A

Tax Services

In addition, the individual designated to oversee the tax services must REVIEW and APPROVE the tax return and related payments;

and if the return is required to be signed for filing, signs the tax return prior to it being transmitted by the accountant to the taxing authority.

Question 45

Q

Tax Services

In addition, the individual designated to oversee the tax services must REVIEW and APPROVE the tax return and related payments;

and if the return is required to be signed for filing, signs the tax return prior to it being tra______ed by the accountant to the taxing authority.

Answer

A

Tax Services

In addition, the individual designated to oversee the tax services must REVIEW and APPROVE the tax return and related payments;

and if the return is required to be signed for filing, signs the tax return prior to it being transmitted by the accountant to the taxing authority.

Question 46

Q

Tax Services

In addition, the individual designated to oversee the tax services must REVIEW and APPROVE the tax return and related payments;

and if the return is required to be signed for filing, signs the tax return prior to it being transmitted by the acc______t to the taxing authority.

Answer

A

Tax Services

In addition, the individual designated to oversee the tax services must REVIEW and APPROVE the tax return and related payments;

and if the return is required to be signed for filing, signs the tax return prior to it being transmitted by the accountant to the taxing authority.

Question 47

Q

Tax Services

Pr_____ing a tax return and transmitting the return and related payment to a taxing authority may create or increase the management participation and self-review threats to independence.

In such circumstances, the accountant’s independence would NOT be impaired if the accountant does NOT have control or custody over client assets.

In addition, the individual designated to oversee the tax services must REVIEW and APPROVE the tax return and related payments;

and if the return is required to be signed for filing, signs the tax return prior to it being transmitted by the accountant to the taxing authority.

Answer

A

Tax Services

Preparing a tax return and transmitting the return and related payment to a taxing authority may create or increase the management participation and self-review threats to independence.

In such circumstances, the accountant’s independence would NOT be impaired if the accountant does NOT have control or custody over client assets.

In addition, the individual designated to oversee the tax services must REVIEW and APPROVE the tax return and related payments;

and if the return is required to be signed for filing, signs the tax return prior to it being transmitted by the accountant to the taxing authority.

Question 48

Q

Tax Services

S____ing and filing a tax return on behalf of a client would NOT impair the accountant’s independence.

Answer

A

Tax Services

Signing and filing a tax return on behalf of a client, assuming the accountant has the legal authority to do so, would NOT impair the accountant’s independence.

Question 49

Q

Tax Services

Signing and filing a tax return on behalf of a client would NOT impair the accountant’s independence.

Nor would:

Serving as the client’s au_____ed representative in an administrative proceeding; or
Having a power of att____y that is limited strictly to tax matters.

Answer

A

Tax Services

Signing and filing a tax return on behalf of a client, assuming the accountant has the legal authority to do so, would NOT impair the accountant’s independence.

Nor would:

Serving as the client’s authorized representative in an administrative proceeding; or
Having a power of attorney that is limited strictly to tax matters.

Question 50

Q

Tax Services

Signing and filing a tax return on behalf of a client would NOT impair the accountant’s independence.

Nor would:

Se__ing as the client’s authorized representative in an ad________e proceeding; or
Having a po___ of attorney that is limited strictly to tax matters.

Answer

A

Tax Services

Signing and filing a tax return on behalf of a client would NOT impair the accountant’s independence.

Nor would:

Serving as the client’s authorized representative in an administrative proceeding; or
Having a power of attorney that is limited strictly to tax matters.

Question 51

Q

Tax Services

Signing and filing a tax return on behalf of a client would NOT impair the accountant’s independence.

Nor would:

Serving as the client’s authorized rep__________ in an administrative proceeding; or
Having a power of attorney that is limited st___y to tax matters.

Answer

A

Tax Services

Signing and filing a tax return on behalf of a client would NOT impair the accountant’s independence.

Nor would:

Serving as the client’s authorized representative in an administrative proceeding; or
Having a power of attorney that is limited strictly to tax matters.

Question 52

Q

Tax Services

Signing and filing a tax return on behalf of a c____ would NOT impair the accountant’s independence.

Nor would:

Serving as the client’s authorized representative in an administrative proceeding; or
Having a power of attorney that is limited strictly to tax matters.

Answer

A

Tax Services

Signing and filing a tax return on behalf of a client would NOT impair the accountant’s independence.

Nor would:

Serving as the client’s authorized representative in an administrative proceeding; or
Having a power of attorney that is limited strictly to tax matters.

Question 53

Q

Tax Services

Rep_______ing a client in court to resolve a tax dispute would raise threats to independence to an unacceptable level and applying safeguards would not be able to reduce threats to an acceptable level.

Answer

A

Tax Services

Representing a client in court to resolve a tax dispute would raise threats to independence to an unacceptable level and applying safeguards would not be able to reduce threats to an acceptable level.

Question 54

Q

Tax Services

Representing a client in court to resolve a tax dis____ would raise threats to independence to an unacceptable level and applying safeguards would not be able to reduce threats to an acceptable level.

Answer

A

Tax Services

Representing a client in court to resolve a tax dispute would raise threats to independence to an unacceptable level and applying safeguards would not be able to reduce threats to an acceptable level.

Question 55

Q

Tax Services

Representing a client in court to resolve a tax dispute would raise threats to i__________ to an unacceptable level and applying safeguards would not be able to reduce threats to an acceptable level.

Answer

A

Tax Services

Representing a client in court to resolve a tax dispute would raise threats to independence to an unacceptable level and applying safeguards would not be able to reduce threats to an acceptable level.

Question 56

Q

Attestation Services

Independence requirements apply to the performance of all at_____ services, including services performed in accordance with attestation standards.

= Independence is required

Answer

A

Attestation Services

Independence requirements apply to the performance of all attest services, including services performed in accordance with attestation standards.

= Independence is required

Question 57

Q

Attestation Services

The CPA is not required to be independent of an individual or entity engaging the CPA to perform an attestation engagement

if the individual or entity is not the r_________e party, the party responsible for the assertion to which the accountant is attesting.

Answer

A

Attestation Services

The CPA is not required to be independent of an individual or entity engaging the CPA to perform an attestation engagement

if the individual or entity is NOT the RESPONSIBLE party, the party responsible for the assertion to which the accountant is attesting.

Question 58

Q

Attestation Services

Independence requirements apply to the performance of all attest services, including services performed in accordance with attestation standards.

The CPA is not required to be independent of an individual or entity engaging the CPA to perform an attestation engagement

if the individual or entity is NOT the RESPONSIBLE party, the party responsible for the as______n to which the accountant is attesting.

Answer

A

Attestation Services

Independence requirements apply to the performance of all attest services, including services performed in accordance with attestation standards.

The CPA is not required to be independent of an individual or entity engaging the CPA to perform an attestation engagement

if the individual or entity is NOT the RESPONSIBLE party, the party responsible for the assertion to which the accountant is attesting.

Question 59

Q

Attestation Services

Mod______s to the independence requirements in relation to the attestation standards include:

• Restrictions on nonattest services only apply to those nonattest services performed in relation to the subject matter of the nonattest services.

Answer

A

Attestation Services

Modifications to the independence requirements in relation to the attestation standards include:

• Restrictions on nonattest services only apply to those nonattest services performed in relation to the subject matter of the nonattest services.

Question 60

Q

Attestation Services

Modifications to the independence requirements in relation to the attestation standards include:

• Rest_______s on nonattest services only apply to those nonattest services performed in relation to the subject matter of the nonattest services.

Answer

A

Attestation Services

Modifications to the independence requirements in relation to the attestation standards include:

• Restrictions on nonattest services only apply to those nonattest services performed in relation to the subject matter of the nonattest services.

Question 61

Q

Attestation Services

Modifications to the independence requirements in relation to the attestation standards include:

• Restrictions on non_____ services only apply to those non_____ services performed in relation to the subject matter of the non_____ services.

Answer

A

Attestation Services

Modifications to the independence requirements in relation to the attestation standards include:

• Restrictions on nonattest services only apply to those nonattest services performed in relation to the subject matter of the nonattest services.

Question 62

Q

Attestation Services

Modifications to the independence req______s in relation to the attestation standards include:

• Restrictions on nonattest services only apply to those nonattest services performed in relation to the subject ma___r of the nonattest services.

Answer

A

Attestation Services

Modifications to the independence requirements in relation to the attestation standards include:

• Restrictions on nonattest services only apply to those nonattest services performed in relation to the subject matter of the nonattest services.

Question 63

Q

Attestation Services

Modifications to the independence requirements in relation to the attestation standards include:

• Co____d members who must comply with the independence requirements in an agreed-upon procedures engagement may be limited to those participating on the engagement;

those who directly supervise the engagement partner or partner equivalent; and

individuals consulting with the engagement team regarding technical or industry-related issues relevant to the engagement.

Answer

A

Attestation Services

Modifications to the independence requirements in relation to the attestation standards include:

• Covered members who must comply with the independence requirements in an agreed-upon procedures engagement may be limited to those participating on the engagement;

those who directly supervise the engagement partner or partner equivalent; and

individuals consulting with the engagement team regarding technical or industry-related issues relevant to the engagement.

Question 64

Q

Attestation Services

Modifications to the independence requirements in relation to the attestation standards include:

• Covered members who must comply with the i__________e requirements in an agreed-upon procedures en________ may be limited to those participating on the en__________;

those who directly supervise the en_________ partner or partner equivalent; and

individuals consulting with the en_________ team regarding technical or industry-related issues relevant to the en___________.

Answer

A

Attestation Services

Modifications to the independence requirements in relation to the attestation standards include:

• Covered members who must comply with the independence requirements in an agreed-upon procedures engagement may be limited to those participating on the engagement;

those who directly supervise the engagement partner or partner equivalent; and

individuals consulting with the engagement team regarding technical or industry-related issues relevant to the engagement.

Answer 65

A

Attestation Services

Modifications to the independence requirements in relation to the attestation standards include:

• Covered members who must comply with the independence requirements in an agreed-upon procedures engagement may be limited to those participating on the engagement;

those who directly supervise the engagement partner or partner equivalent; and

individuals consulting with the engagement team regarding technical or industry-related issues relevant to the engagement.

Answer 66

A

Attestation Services

Modifications to the independence requirements in relation to the attestation standards include:

• Covered members who must comply with the independence requirements in an agreed-upon procedures engagement may be limited to those participating on the engagement;

those who directly supervise the engagement partner or partner equivalent; and

individuals consulting with the engagement team regarding technical or industry-related issues relevant to the engagement.

Answer 67

A

Attestation Services

Modifications to the independence requirements in relation to the attestation standards include:

• Covered members who must comply with the independence requirements in an agreed-upon procedures engagement may be limited to those participating on the engagement;

those who directly supervise the engagement partner or partner equivalent; and

individuals consulting with the engagement team regarding technical or industry-related issues relevant to the engagement.

Answer 68

A

Attestation Services

Modifications to the independence requirements in relation to the attestation standards include:

Restrictions on nonattest services only apply to those nonattest services performed in relation to the subject matter of the nonattest services.
Covered members who must comply with the independence requirements in an agreed-upon procedures engagement may be limited to those participating on the engagement;

those who directly supervise the engagement partner or partner equivalent; and

individuals consulting with the engagement team regarding technical or industry-related issues relevant to the engagement.

Answer 69

A

General Standards

A member must comply with the following standards for all professional engagements:

Only accept engagements expected to be completed with professional competency.
Exercise due professional care.
Adequately plan and supervise engagements.
Obtain sufficient relevant data to afford a reasonable basis for conclusions and recommendations.

Answer 70

A

General Standards

A member must comply with the following standards for all professional engagements:

Only accept engagements expected to be completed with professional competency.
Exercise due professional care.
Adequately plan and supervise engagements.
Obtain sufficient relevant data to afford a reasonable basis for conclusions and recommendations.

Answer 71

A

General Standards

A member must comply with the following standards for all professional engagements:

Only accept engagements expected to be completed with professional competency.
Exercise due professional care.
Adequately plan and supervise engagements.
Obtain sufficient relevant data to afford a reasonable basis for conclusions and recommendations.

Answer 72

A

General Standards

A member must comply with the following standards for all professional engagements:

Only accept engagements expected to be completed with professional competency.
Exercise due professional care.
Adequately plan and supervise engagements.
Obtain sufficient relevant data to afford a reasonable basis for conclusions and recommendations.

Answer 73

A

General Standards

A member must comply with the following standards for all professional engagements:

Only accept engagements expected to be completed with professional competency.
Exercise due professional care.
Adequately plan and supervise engagements.
Obtain sufficient relevant data to afford a reasonable basis for conclusions and recommendations.

Answer 74

A

General Standards

A member who performs auditing, review, compilation, consulting services, tax or other services shall comply with standards promulgated by bodies designated by Council.

Answer 75

A

General Standards

A member who performs auditing, review, compilation, consulting services, tax or other services shall comply with standards promulgated by bodies designated by Council.

Answer 76

A

General Standards

A member who performs auditing, review, compilation, consulting services, tax or other services shall comply with standards promulgated by bodies designated by Council.

The bodies include:

FASB
GASB
PCAOB (SOX)
IASB for IAS

• AICPA bodies
o ARSC – Accounting and Review Services Committee
o ASB – Auditing Standards Board
o Management Consulting Standards Executive Committee
o Attestation Standards
o Tax Executive Committee
o Forensic and Valuation Services Executive Committee
o Personal Financial Planning Executive Committee

Answer 77

A

General Standards

A member who performs auditing, review, compilation, consulting services, tax or other services shall comply with standards promulgated by bodies designated by Council.

The bodies include:

FASB
GASB
PCAOB (SOX)
IASB for IAS

• AICPA bodies
o ARSC – Accounting and Review Services Committee
o ASB – Auditing Standards Board
o Management Consulting Standards Executive Committee
o Attestation Standards
o Tax Executive Committee
o Forensic and Valuation Services Executive Committee
o Personal Financial Planning Executive Committee

Answer 78

A

General Standards

A member may not provide positive or negative assurance that financial statements are in conformity with a financial reporting framework (GAAP, IASB, PCAOB, GASB, and FASAB statements)

if statements contain departures from that framework having a material effect on statements taken as a whole except when unusual circumstances would make financial statements misleading

if the requirements of the framework had been followed.

May depart from GAAP/GASB w/o modifying report if new legislation or a new form of business transaction exists.

Answer 79

A

General Standards

A member may not provide positive or negative assurance that financial statements are in conformity with a financial reporting framework (GAAP, IASB, PCAOB, GASB, and FASAB statements)

if statements contain departures from that framework having a material effect on statements taken as a whole except when unusual circumstances would make financial statements misleading

if the requirements of the framework had been followed.

May depart from GAAP/GASB w/o modifying report if new legislation or a new form of business transaction exists.

Answer 80

A

General Standards

A member may not provide positive or negative assurance that financial statements are in conformity with a financial reporting framework (GAAP, IASB, PCAOB, GASB, and FASAB statements)

if statements contain departures from that framework having a material effect on statements taken as a whole except when unusual circumstances would make financial statements misleading

if the requirements of the framework had been followed.

May depart from GAAP/GASB w/o modifying report if new legislation or a new form of business transaction exists.

Answer 81

A

General Standards

A member may not provide positive or negative assurance that financial statements are in conformity with a financial reporting framework (GAAP, IASB, PCAOB, GASB, and FASAB statements)

if statements contain departures from that framework having a material effect on statements taken as a whole except when unusual circumstances would make financial statements misleading

if the requirements of the framework had been followed.

May depart from GAAP/GASB w/o modifying report if new legislation or a new form of business transaction exists.

Answer 82

A

Acts Discreditable

A member should NOT commit certain acts that are discreditable to the profession.

These might include:

Discrimination and harassment in employment practices
Failing to file a tax return or pay a tax liability
Retaining client records to enforce payment of a bill.

Answer 83

A

Acts Discreditable

A member should NOT commit certain acts that are discreditable to the profession.

These might include:

Discrimination and harassment in employment practices
Failing to file a tax return or pay a tax liability
Retaining client records to enforce payment of a bill.

Answer 84

A

Acts Discreditable

A member should NOT commit certain acts that are discreditable to the profession.

These might include:

Discrimination and harassment in employment practices
Failing to file a tax return or pay a tax liability
Retaining client records to enforce payment of a bill.

Answer 85

A

Acts Discreditable

A member should NOT commit certain acts that are discreditable to the profession.

These might include:

Providing a fee estimate to a client for services, when the accountant expects the actual fee to be substantially higher (Deliberate underbidding).
Negligence in the preparation of Financial Statements.
Filing a fraudulent tax return for self or client.
Commission of a Felony.

Answer 86

A

Acts Discreditable

A member should NOT commit certain acts that are discreditable to the profession.

These might include:

Providing a fee estimate to a client for services, when the accountant expects the actual fee to be substantially higher (Deliberate underbidding).
Negligence in the preparation of Financial Statements.
Filing a fraudulent tax return for self or client.
Commission of a Felony.

Answer 87

A

Acts Discreditable

A member should NOT commit certain acts that are discreditable to the profession.

These might include:

Providing a fee estimate to a client for services, when the accountant expects the actual fee to be substantially higher (Deliberate underbidding).
Negligence in the preparation of Financial Statements.
Filing a fraudulent tax return for self or client.
Commission of a Felony.

Answer 88

A

Acts Discreditable

A member should NOT commit certain acts that are discreditable to the profession.

These might include:

Noncompliance with applicable requirements of governmental bodies; commissions, or other regulatory agencies when operating within their jurisdiction, including the SEC, Federal Communications Commission, or the PCAOB;
Solicitation or disclosure of CPA examination questions and answers.
False, misleading, or deceptive acts in promoting or marketing professional services
Inappropriate use of the CPA credential

Answer 89

A

Acts Discreditable

A member should NOT commit certain acts that are discreditable to the profession.

These might include:

Noncompliance with applicable requirements of governmental bodies; commissions, or other regulatory agencies when operating within their jurisdiction, including the SEC, Federal Communications Commission, or the PCAOB;
Solicitation or disclosure of CPA examination questions and answers.
False, misleading, or deceptive acts in promoting or marketing professional services
Inappropriate use of the CPA credential

Answer 90

A

Acts Discreditable

A member should NOT commit certain acts that are discreditable to the profession.

These might include:

Noncompliance with applicable requirements of governmental bodies; commissions, or other regulatory agencies when operating within their jurisdiction, including the SEC, Federal Communications Commission, or the PCAOB;
Solicitation or disclosure of CPA examination questions and answers.
False, misleading, or deceptive acts in promoting or marketing professional services
Inappropriate use of the CPA credential

Answer 91

A

Acts Discreditable

A member should NOT commit certain acts that are discreditable to the profession.

These might include:

Discrimination and harassment in employment practices
Failing to file a tax return or pay a tax liability
Retaining client records to enforce payment of a bill.
Providing a fee estimate to a client for services, when the accountant expects the actual fee to be substantially higher (Deliberate underbidding).
Negligence in the preparation of Financial Statements.
Filing a fraudulent tax return for self or client.
Commission of a Felony.
Noncompliance with applicable requirements of governmental bodies; commissions, or other regulatory agencies when operating within their jurisdiction, including the SEC, Federal Communications Commission, or the PCAOB;
Solicitation or disclosure of CPA examination questions and answers.
False, misleading, or deceptive acts in promoting or marketing professional services
Inappropriate use of the CPA credential

Answer 92

A

Fees and Other Types of Remuneration

A member may NOT prepare an original or amended tax return for a contingent fee or accept contingent fees for services involving, or from a client for whom the CPA performs such services:

An audit or review
A compilation of financial statements expected to be used by third parties without indicating the lack of independence
An examination of prospective financial statements

Answer 93

A

Fees and Other Types of Remuneration

A member may NOT prepare an original or amended tax return for a contingent fee or accept contingent fees for services involving, or from a client for whom the CPA performs such services:

An audit or review
A compilation of financial statements expected to be used by third parties without indicating the lack of independence
An examination of prospective financial statements

Answer 94

A

Fees and Other Types of Remuneration

A member may NOT prepare an original or amended tax return for a contingent fee or accept contingent fees for services involving, or from a client for whom the CPA performs such services:

An audit or review
A compilation of financial statements expected to be used by third parties without indicating the lack of independence
An examination of prospective financial statements

Answer 95

A

Fees and Other Types of Remuneration

A member may NOT prepare an original or amended tax return for a contingent fee or accept contingent fees for services involving, or from a client for whom the CPA performs such services:

An audit or review
A compilation of financial statements expected to be used by third parties without indicating the lack of independence
An examination of prospective financial statements

Answer 96

A

Fees and Other Types of Remuneration

A member may NOT prepare an original or amended tax return for a contingent fee or accept contingent fees for services involving, or from a client for whom the CPA performs such services:

An audit or review
A compilation of financial statements expected to be used by third parties without indicating the lack of independence
An examination of prospective financial statements

Answer 97

A

Fees and Other Types of Remuneration

A member may NOT prepare an original or amended tax return for a contingent fee or accept contingent fees for services involving, or from a client for whom the CPA performs such services:

An audit or review
A compilation of financial statements expected to be used by third parties without indicating the lack of independence
An examination of prospective financial statements

Answer 98

A

Fees and Other Types of Remuneration

A member may NOT prepare an original or amended tax return for a contingent fee or accept contingent fees for services involving, or from a client for whom the CPA performs such services:

An audit or review
A compilation of financial statements expected to be used by third parties without indicating the lack of independence
An examination of prospective financial statements

Answer 99

A

Fees and Other Types of Remuneration

Contingent fees are permitted when performing certain tax-related services, including:

Representing a client in an examination of an income tax return

Filing an amended income tax return claiming a refund:

    o Based on a tax issue subject to a test case or an evolving position
    o In an amount greater than the threshold for review by the Joint Committee on Internal Revenue Taxation or state taxing authority

Answer 100

A

Fees and Other Types of Remuneration

Contingent fees are permitted when performing certain tax-related services, including:

Representing a client in an examination of an income tax return

Filing an amended income tax return claiming a refund:

    o Based on a tax issue subject to a test case or an evolving position
    o In an amount greater than the threshold for review by the Joint Committee on Internal Revenue Taxation or state taxing authority

Answer 101

A

Fees and Other Types of Remuneration

Contingent fees are permitted when performing certain tax-related services, including:

Representing a client in an examination of an income tax return

Filing an amended income tax return claiming a refund:

    o Based on a tax issue subject to a test case or an evolving position
    o In an amount greater than the threshold for review by the Joint Committee on Internal Revenue Taxation or state taxing authority

Answer 102

A

Fees and Other Types of Remuneration

Contingent fees are permitted when performing certain tax-related services, including:

Representing a client in an examination of an income tax return

Filing an amended income tax return claiming a refund:

    o Based on a tax issue subject to a test case or an evolving position
    o In an amount greater than the threshold for review by the Joint Committee on Internal Revenue Taxation or state taxing authority

Answer 103

A

Fees and Other Types of Remuneration

Contingent fees are permitted when performing certain tax-related services, including:

Representing a client in an examination of an income tax return

Filing an amended income tax return claiming a refund:

    o Based on a tax issue subject to a test case or an evolving position
    o In an amount greater than the threshold for review by the Joint Committee on Internal Revenue Taxation or state taxing authority

Answer 104

A

Fees and Other Types of Remuneration

A member may accept commissions and referral fees only if both:

Non-attest engagement client.
Payment fully disclosed to client.

No commission may be accepted if the accountant is required to be independent for the service provided.

Answer 105

A

Fees and Other Types of Remuneration

A member may accept commissions and referral fees only if both:

Non-attest engagement client.
Payment fully disclosed to client.

No commission may be accepted if the accountant is required to be independent for the service provided.

Answer 106

A

Fees and Other Types of Remuneration

A member may accept commissions and referral fees only if both:

Non-attest engagement client.
Payment fully disclosed to client.

No commission may be accepted if the accountant is required to be independent for the service provided.

Answer 107

A

Fees and Other Types of Remuneration

A member may accept commissions and referral fees only if both:

Non-attest engagement client.
Payment fully disclosed to client.

No commission may be accepted if the accountant is required to be independent for the service provided.

Answer 108

A

Advertising and Other Forms of solicitation

A member may NOT engage in false, misleading, or deceptive advertising.

Answer 109

A

Advertising and Other Forms of solicitation

A member may NOT engage in false, misleading, or deceptive advertising.

Answer 110

A

Advertising and Other Forms of solicitation

A member may NOT engage in false, misleading, or deceptive advertising.

Answer 111

A

Advertising and Other Forms of solicitation

A member may NOT engage in false, misleading, or deceptive advertising.

Answer 112

A

Advertising and Other Forms of solicitation

A member may NOT engage in false, misleading, or deceptive advertising.

Answer 113

A

Confidential Information

Information is considered confidential, not privileged. Must not reveal information without client permission with certain exceptions:

Valid subpoena or summons.
Inquiry by AICPA trial board.
A request made as part of a Quality control peer review program.

A CPA may not give information to another CPA as a professional courtesy and may not take copies of client files when leaving the firm.

Answer 114

A

Confidential Information

Information is considered confidential, not privileged. Must not reveal information without client permission with certain exceptions:

Valid subpoena or summons.
Inquiry by AICPA trial board.
A request made as part of a Quality control peer review program.

A CPA may not give information to another CPA as a professional courtesy and may not take copies of client files when leaving the firm.

Answer 115

A

Confidential Information

Information is considered confidential, not privileged. Must not reveal information without client permission with certain exceptions:

Valid subpoena or summons.
Inquiry by AICPA trial board.
A request made as part of a Quality control peer review program.

A CPA may not give information to another CPA as a professional courtesy and may not take copies of client files when leaving the firm.

Answer 116

A

Confidential Information

Information is considered confidential, not privileged. Must not reveal information without client permission with certain exceptions:

Valid subpoena or summons.
Inquiry by AICPA trial board.
A request made as part of a Quality control peer review program.

A CPA may not give information to another CPA as a professional courtesy and may not take copies of client files when leaving the firm.

Answer 117

A

Confidential Information

Information is considered confidential, not privileged. Must not reveal information without client permission with certain exceptions:

Valid subpoena or summons.
Inquiry by AICPA trial board.
A request made as part of a Quality control peer review program.

A CPA may not give information to another CPA as a professional courtesy and may not take copies of client files when leaving the firm.

Answer 118

A

Form of Organization and Name

A member may practice public accounting in any form of organization that is permitted by law or regulation with characteristics consistent with those approved in resolutions of the AICPA Council.

Answer 119

A

Form of Organization and Name

A member may practice public accounting in any form of organization that is permitted by law or regulation with characteristics consistent with those approved in resolutions of the AICPA Council.

Form and name should not be misleading.
A firm cannot designate itself as “members of the AICPA” unless ALL of its CPA OWNERS are members of the AICPA.
An individual may practice in name of a former partnership for up to 2 years (applies when all other partners have died or withdrawn).
A firm name may include names of past partners.

Answer 120

A

Form of Organization and Name

A member may practice public accounting in any form of organization that is permitted by law or regulation with characteristics consistent with those approved in resolutions of the AICPA Council.

Form and name should not be misleading.
A firm cannot designate itself as “members of the AICPA” unless ALL of its CPA OWNERS are members of the AICPA.
An individual may practice in name of a former partnership for up to 2 years (applies when all other partners have died or withdrawn).
A firm name may include names of past partners.

Answer 121

A

Form of Organization and Name

A member may practice public accounting in any form of organization that is permitted by law or regulation with characteristics consistent with those approved in resolutions of the AICPA Council.

Form and name should not be misleading.
A firm cannot designate itself as “members of the AICPA” unless ALL of its CPA OWNERS are members of the AICPA.
An individual may practice in name of a former partnership for up to 2 years (applies when all other partners have died or withdrawn).
A firm name may include names of past partners.

Answer 122

A

Form of Organization and Name

A member may practice public accounting in any form of organization that is permitted by law or regulation with characteristics consistent with those approved in resolutions of the AICPA Council.

Form and name should not be misleading.
A firm cannot designate itself as “members of the AICPA” unless ALL of its CPA OWNERS are members of the AICPA.
An individual may practice in name of a former partnership for up to 2 years (applies when all other partners have died or withdrawn).
A firm name may include names of past partners.

Answer 123

A

Part 2 is applicable to members in private industry.

A member who is both in private industry and public practice, the requirements applicable to a member in public practice will apply.

Answer 124

A

Part 2 is applicable to members in private industry.

A member who is both in private industry and public practice, the requirements applicable to a member in public practice will apply.

Answer 125

A

Integrity and Objectivity

As is true for members in public accounting, those in private industry shall

maintain objectivity and integrity,
avoid conflicts of interest, and
not knowingly misrepresent facts or subordinate judgment
in the performance of any professional service.

Answer 126

A

Integrity and Objectivity

As is true for members in public accounting, those in private industry shall

maintain objectivity and integrity,
avoid conflicts of interest, and
not knowingly misrepresent facts or subordinate judgment
in the performance of any professional service.

Answer 127

A

Integrity and Objectivity

As is true for members in public accounting, those in private industry shall

maintain objectivity and integrity,
avoid conflicts of interest, and
not knowingly misrepresent facts or subordinate judgment
in the performance of any professional service.

Answer 128

A

General Standards

A member must comply with the following standards for all professional engagements:

Only accept engagements expected to be completed with professional competency.
Exercise due professional care.
Adequately plan and supervise engagements.
Obtain sufficient relevant data to afford a reasonable basis for conclusions and recommendations.

Answer 129

A

General Standards

A member must comply with the following standards for all professional engagements:

Only accept engagements expected to be completed with professional competency.
Exercise due professional care.
Adequately plan and supervise engagements.
Obtain sufficient relevant data to afford a reasonable basis for conclusions and recommendations.

Answer 130

A

Acts Discreditable

A member should NOT commit certain acts that are discreditable to the profession.

These might include:

Violations of laws related to discrimination or harassment in the workplace.
Solicitation or disclosure of CPA examination questions and answers.
Nonpayment of a tax liability or not filing a return
Preparing financial statements in a negligent manner

Answer 131

A

Acts Discreditable

A member should NOT commit certain acts that are discreditable to the profession.

These might include:

Violations of laws related to discrimination or harassment in the workplace.
Solicitation or disclosure of CPA examination questions and answers.
Nonpayment of a tax liability or not filing a return
Preparing financial statements in a negligent manner

Answer 132

A

Acts Discreditable

A member should NOT commit certain acts that are discreditable to the profession.

These might include:

Violations of laws related to discrimination or harassment in the workplace.
Solicitation or disclosure of CPA examination questions and answers.
Nonpayment of a tax liability or not filing a return
Preparing financial statements in a negligent manner

Answer 133

A

Part 3 is applicable to members who are neither in public accounting or private industry,

such as a member who is retired or unemployed.

Answer 134

A

Acts Discreditable

A member should NOT commit certain acts that are discreditable to the profession.

These might include:

Violations of laws related to discrimination or harassment in the workplace.
Solicitation or disclosure of CPA examination questions and answers.
Nonpayment of a tax liability or not filing a return
Disclosing confidential information obtained as a result of previous relationships

Answer 135

A

Acts Discreditable

A member should NOT commit certain acts that are discreditable to the profession.

These might include:

Violations of laws related to discrimination or harassment in the workplace.
Solicitation or disclosure of CPA examination questions and answers.
Nonpayment of a tax liability or not filing a return
Disclosing confidential information obtained as a result of previous relationships

Answer 136

A

Consulting Services Standards

Consulting services consist of 
advisory services, 
implementation services, 
product services or 
providing technical assistance in implementing a new IT system.

Independence need not be maintained, but the consultant must act with integrity and objectivity.

A written or oral understanding with the client should be established.

Answer 137

A

Consulting Services Standards

Consulting services consist of 
advisory services, 
implementation services, 
product services or 
providing technical assistance in implementing a new IT system.

Independence need not be maintained, but the consultant must act with integrity and objectivity.

A written or oral understanding with the client should be established.

Answer 138

A

Consulting Services Standards

Consulting services consist of 
advisory services, 
implementation services, 
product services or 
providing technical assistance in implementing a new IT system.

Independence need not be maintained, but the consultant must act with integrity and objectivity.

A written or oral understanding with the client should be established.

Answer 139

A

Consulting Services Standards

Consulting services consist of 
advisory services, 
implementation services, 
product services or 
providing technical assistance in implementing a new IT system.

Independence need not be maintained, but the consultant must act with integrity and objectivity.

A written or oral understanding with the client should be established.

Answer 140

A

Consulting Services Standards

Consulting services consist of 
advisory services, 
implementation services, 
product services or 
providing technical assistance in implementing a new IT system.

Independence need not be maintained, but the consultant must act with integrity and objectivity.

A written or oral understanding with the client should be established.

Answer 141

A

Consulting Services Standards

• General standards of the profession, which apply to all services performed by the CPA

o Professional Competence (T)
o Due professional care (P)
o Planning and supervision (P)
o Sufficient relevant data (C)

Answer 142

A

Consulting Services Standards

• General standards of the profession, which apply to all services performed by the CPA

o Professional Competence (T)
o Due professional care (P)
o Planning and supervision (P)
o Sufficient relevant data (C)

Answer 143

A

Consulting Services Standards

• General standards of the profession, which apply to all services performed by the CPA

o Professional Competence (T)
o Due professional care (P)
o Planning and supervision (P)
o Sufficient relevant data (C)

Answer 144

A

Consulting Services Standards

Additional general standards apply specifically to consulting services:

• Client interest
– must act with integrity and objectivity
(need NOT be independent) while seeking to fulfill client’s objectives.

• Understanding with client
– written or oral agreement to perform engagement.

• Communication with client:
o Disclose conflicts of interest.
o Cite reservations about potential benefits of engagement.
o Provide findings in appropriate oral or written form.

Answer 145

A

Consulting Services Standards

Additional general standards apply specifically to consulting services:

• Client interest
– must act with integrity and objectivity
(need NOT be independent) while seeking to fulfill client’s objectives.

• Understanding with client
– written or oral agreement to perform engagement.

• Communication with client:
o Disclose conflicts of interest.
o Cite reservations about potential benefits of engagement.
o Provide findings in appropriate oral or written form.

Answer 146

A

Consulting Services Standards

Additional general standards apply specifically to consulting services:

• Client interest
– must act with integrity and objectivity
(need NOT be independent) while seeking to fulfill client’s objectives.

• Understanding with client
– written or oral agreement to perform engagement.

• Communication with client:
o Disclose conflicts of interest.
o Cite reservations about potential benefits of engagement.
o Provide findings in appropriate oral or written form.

Answer 147

A

Consulting Services Standards

Additional general standards apply specifically to consulting services:

• Client interest
– must act with integrity and objectivity
(need NOT be independent) while seeking to fulfill client’s objectives.

• Understanding with client
– written or oral agreement to perform engagement.

• Communication with client:
o Disclose conflicts of interest.
o Cite reservations about potential benefits of engagement.
o Provide findings in appropriate oral or written form.

Answer 148

A

Consulting Services Standards

Additional general standards apply specifically to consulting services:

• Client interest
– must act with integrity and objectivity
(need NOT be independent) while seeking to fulfill client’s objectives.

• Understanding with client
– written or oral agreement to perform engagement.

• Communication with client:
o Disclose conflicts of interest.
o Cite reservations about potential benefits of engagement.
o Provide findings in appropriate oral or written form.

Answer 149

A

Statements on Standards in Personal Financial Planning Services (PFP)

CPAs often help clients by performing personal financial planning services, which involves assisting clients in identifying and establishing personal financial goals and resources.

Answer 150

A

Statements on Standards in Personal Financial Planning Services (PFP)

CPAs often help clients by performing personal financial planning services, which involves assisting clients in identifying and establishing personal financial goals and resources.

Answer 151

A

Statements on Standards in Personal Financial Planning Services (PFP)

CPAs often help clients by performing personal financial planning services, which involves assisting clients in identifying and establishing personal financial goals and resources.

The services may include such activities as 
cash flow, 
risk and management, 
retirement, or 
investment planning; 
estate, gift, and wealth transfer planning; 
elder planning; 
charitable planning, 
education planning; or 
tax planning.

Answer 152

A

Statements on Standards in Personal Financial Planning Services (PFP)

CPAs often help clients by performing personal financial planning services, which involves assisting clients in identifying and establishing personal financial goals and resources.

The services may include such activities as 
cash flow, 
risk and management, 
retirement, or 
investment planning; 
estate, gift, and wealth transfer planning; 
elder planning; 
charitable planning, 
education planning; or 
tax planning.

Answer 153

A

Statements on Standards in Personal Financial Planning Services (PFP)

A CPA performing personal financial planning (PFP) services is required to adhere to the requirements of Statements on Standards in Personal Financial Planning Services (SSPFPS), issued by the AICPA

if the CPA:

Represents to the public or clients that PFP services are being provided;
Performs activity that require registration as an investment advisor under federal or state jurisdictions; or
Sells a product or service as a result of the engagement.

Answer 154

A

Statements on Standards in Personal Financial Planning Services (PFP)

A CPA performing personal financial planning (PFP) services is required to adhere to the requirements of Statements on Standards in Personal Financial Planning Services (SSPFPS), issued by the AICPA

if the CPA:

Represents to the public or clients that PFP services are being provided;
Performs activity that require registration as an investment advisor under federal or state jurisdictions; or
Sells a product or service as a result of the engagement.

Answer 155

A

Statements on Standards in Personal Financial Planning Services (PFP)

A CPA performing personal financial planning (PFP) services is required to adhere to the requirements of Statements on Standards in Personal Financial Planning Services (SSPFPS), issued by the AICPA

if the CPA:

Represents to the public or clients that PFP services are being provided;
Performs activity that require registration as an investment advisor under federal or state jurisdictions; or
Sells a product or service as a result of the engagement.

Answer 156

A

Statements on Standards in Personal Financial Planning Services (PFP)

A CPA performing PFP services is only required to be independent if also performing attest services for that client, which require independence.

Answer 157

A

Statements on Standards in Personal Financial Planning Services (PFP)

A CPA performing PFP services is only required to be independent if also performing attest services for that client, which require independence.

Answer 158

A

Statements on Standards in Personal Financial Planning Services (PFP)

A CPA performing PFP services is only required to be independent if also performing attest services for that client, which require independence.

The CPA will evaluate the services performed and the relationship with the client in the context of the independence requirements under the AICPA Code of Professional Conduct.

Answer 159

A

Statements on Standards in Personal Financial Planning Services (PFP)

A CPA performing PFP services is only required to be independent if also performing attest services for that client, which require independence.

The CPA will evaluate the services performed and the relationship with the client in the context of the independence requirements under the AICPA Code of Professional Conduct.

Answer 160

A

Statements on Standards in Personal Financial Planning Services (PFP)

A CPA performing PFP services should adhere to certain general requirements. These include:

• Compliance with all applicable ethical requirements

• Possession of knowledge of PFP principles and skills adequate to
allow the CPA to identify client goals,
analyze relevant information,
apply appropriate approaches, and
develop recommendations using professional judgment.

Answer 161

A

Statements on Standards in Personal Financial Planning Services (PFP)

A CPA performing PFP services should adhere to certain general requirements. These include:

• Compliance with all applicable ethical requirements

• Possession of knowledge of PFP principles and skills adequate to
allow the CPA to identify client goals,
analyze relevant information,
apply appropriate approaches, and
develop recommendations using professional judgment.

Answer 162

A

Statements on Standards in Personal Financial Planning Services (PFP)

A CPA performing PFP services should adhere to certain general requirements. These include:

• Compliance with all applicable ethical requirements

• Possession of knowledge of PFP principles and skills adequate to
allow the CPA to identify client goals,
analyze relevant information,
apply appropriate approaches, and
develop recommendations using professional judgment.

Answer 163

A

Statements on Standards in Personal Financial Planning Services (PFP)

A CPA performing PFP services should adhere to certain general requirements. These include:

Evaluation of potential conflicts of interest regarding the engagement.
Compliance with applicable laws and regulations.

Answer 164

A

Statements on Standards in Personal Financial Planning Services (PFP)

A CPA performing PFP services should adhere to certain general requirements. These include:

Evaluation of potential conflicts of interest regarding the engagement.
Compliance with applicable laws and regulations.

Answer 165

A

Statements on Standards in Personal Financial Planning Services (PFP)

A CPA performing PFP services should adhere to certain general requirements. These include:

• Compliance with all applicable ethical requirements

• Possession of knowledge of PFP principles and skills adequate to
allow the CPA to identify client goals,
analyze relevant information,
apply appropriate approaches, and
develop recommendations using professional judgment.

Evaluation of potential conflicts of interest regarding the engagement.
Compliance with applicable laws and regulations.

Answer 166

A

Statements on Standards in Personal Financial Planning Services (PFP)

Prior to the engagement, the CPA should disclose in writing all compensation that the CPA and its firms or affiliates will receive, including any compensation alternatives.

Answer 167

A

Statements on Standards in Personal Financial Planning Services (PFP)

Prior to the engagement, the CPA should disclose in writing all compensation that the CPA and its firms or affiliates will receive, including any compensation alternatives.

Answer 168

A

Statements on Standards in Personal Financial Planning Services (PFP)

Prior to the engagement, the CPA should disclose in writing all compensation that the CPA and its firms or affiliates will receive, including any compensation alternatives.

Answer 169

A

Statements on Standards in Personal Financial Planning Services (PFP)

SSPFPS address five issues in relation to PFP services. These include:

Planning the engagement
Obtaining and analyzing information
Developing and communicating recommendations
Implementation engagements
Monitoring and updating engagements

They also provide guidance when either working with, or using advice provided by, another service provider.

Answer 170

A

Statements on Standards in Personal Financial Planning Services (PFP)

SSPFPS address five issues in relation to PFP services. These include:

Planning the engagement
Obtaining and analyzing information
Developing and communicating recommendations
Implementation engagements
Monitoring and updating engagements

They also provide guidance when either working with, or using advice provided by, another service provider.

Answer 171

A

Statements on Standards in Personal Financial Planning Services (PFP)

SSPFPS address five issues in relation to PFP services. These include:

Planning the engagement
Obtaining and analyzing information
Developing and communicating recommendations
Implementation engagements
Monitoring and updating engagements

They also provide guidance when either working with, or using advice provided by, another service provider.

Answer 172

A

Statements on Standards in Personal Financial Planning Services (PFP)

SSPFPS address five issues in relation to PFP services. These include:

Planning the engagement
Obtaining and analyzing information
Developing and communicating recommendations
Implementation engagements
Monitoring and updating engagements

They also provide guidance when either working with, or using advice provided by, another service provider.

Answer 173

A

Statements on Standards in Personal Financial Planning Services (PFP)

SSPFPS address 5 issues in relation to PFP services. These include:

Planning the engagement
Obtaining and analyzing information
Developing and communicating recommendations
Implementation engagements
Monitoring and updating engagements

Planning

The primary planning related requirement is for the CPA to make certain that the client is informed, in writing, of the scope and nature of the services and the CPA’s compensation for them.

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AUD 2 Professional Responsibilities and Ethics 5 Flashcards

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