AUD 2 Professional Responsibilities and Ethics 5 Flashcards
1
Q
When a CPA provides investment advisory or management services, the m_________ p___________ and self-review threats are affected.
A
Investment Advisory or Management
When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.
2
Q
When a CPA provides investment advisory or management services, the management participation and ____ - ______ threats are affected.
A
Investment Advisory or Management
When a CPA provides investment advisory or management services, the management participation and self-review threats are affected.
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;
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;
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;
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;
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;
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;
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;
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;
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;
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;
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;
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;
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;
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;
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;
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;
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;
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;
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;
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;
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;
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;
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;
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;
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;
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;
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________;
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;
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;
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;
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;
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;
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.
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.
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.
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.
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.
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.
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.
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.
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_______.
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.
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.
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.
25
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.
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.
26
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;
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;
27
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;
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;
28
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;
Investment Advisory or Management
the accountant (Cannot do):
* Makes investment decisions on behalf of the client’
* Has discretionary authority over client investments;
29
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;
Investment Advisory or Management
the accountant (Cannot do):
* Makes investment decisions on behalf of the client’
* Has discretionary authority over client investments;
30
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.
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.
31
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.
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.
32
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.
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.
33
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.
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.
34
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.
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.
35
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.
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.
36
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.
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.
37
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.
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.
38
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.
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.
39
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.
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.
40
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.
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.
41
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.
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.
42
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.
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.
43
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.
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.
44
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.
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.
45
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.
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.
46
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.
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.
47
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.
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.
48
Tax Services
S____ing and filing a tax return on behalf of a client would NOT impair the accountant’s independence.
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.
49
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.
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.
50
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.
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.
51
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.
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.
52
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.
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.
53
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.
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.
54
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.
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.
55
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.
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.
56
Attestation Services
Independence requirements apply to the performance of all at_____ services, including services performed in accordance with attestation standards.
= Independence is required
Attestation Services
Independence requirements apply to the performance of all attest services, including services performed in accordance with attestation standards.
= Independence is required
57
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.
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.
58
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.
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.
59
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.
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.
60
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.
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.
61
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.
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.
62
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.
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.
63
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.
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.
64
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___________.
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.
65
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 li____d to those par_____ting 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.
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.
66
Attestation Services
Modifications to the independence requirements in relation to the attestation standards include:
• Covered members who must com___ 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 con____ing with the engagement team regarding technical or industry-related issues relevant to the engagement.
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.
67
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 sup_____ the engagement partner or partner equivalent; and
individuals consulting with the engagement team regarding tec_____ or industry-related issues relevant to the engagement.
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.
68
Attestation Services
Modifications to the independence requirements in relation to the attestation st________s 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.
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.
69
General Standards
A member must comply with the following standards for all professional engagements:
* Only accept engagements expected to be completed with professional com_______y.
* Exercise d__ professional care.
* Adequately p___ and supervise engagements.
* Obtain suf_____ relevant data to afford a reasonable basis for conclusions and recommendations.
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.
70
General Standards
A member must com___ with the following standards for all professional engagements:
* Only ac____t engagements expected to be com____ed 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.
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.
71
General Standards
A member must comply with the following standards for all professional engagements:
* Only accept engagements ex____ed to be completed with pro_______ competency.
* Exercise due professional care.
* Adequately plan and sup_____ engagements.
* Obtain sufficient relevant data to afford a reasonable basis for conclusions and recommendations.
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.
72
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.
* Ob_____ sufficient relevant d___ to afford a reasonable basis for conclusions and recommendations.
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.
73
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 con______s and r___________s.
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.
74
General Standards
A member who performs au___ing, review, com______n, consulting services, tax or other services shall comply with standards promulgated by bodies designated by Council.
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.
75
General Standards
A member who performs auditing, review, compilation, con____ing services, t__ or other services shall comply with standards promulgated by bodies designated by Council.
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.
76
General Standards
A member who performs auditing, review, compilation, consulting services, tax or other services shall comply with standards promulgated by bodies designated by Co____l.
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
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
77
General Standards
A member who per_____s 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
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
78
General Standards
A member may not provide pos_____ or neg_____ 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.
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.
79
General Standards
A member may not provide positive or negative ass______ that financial statements are in conformity with a f_______ 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.
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.
80
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 dep______s from that framework having a m______ 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.
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.
81
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 mis_______
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.
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.
82
Acts Discreditable
A member should NOT commit certain acts that are discreditable to the profession.
These might include:
* Disc__________n and harassment in employment practices
* Failing to file a tax re___n or pay a tax liability
* Retaining c____ records to enforce payment of a bill.
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.
83
Acts Discreditable
A member should NOT commit certain acts that are discreditable to the profession.
These might include:
* Discrimination and har________t in employment practices
* Fa__ing to file a tax return or p__ a tax liability
* Retaining client records to enforce payment of a bill.
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.
84
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 re_____s to enforce p______ of a bill.
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.
85
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 h___er (Deliberate underbidding).
* Neg______ in the preparation of Financial Statements.
* Filing a fra_______ tax return for self or client.
* Commission of a Fe___y.
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.
86
Acts Discreditable
A member should NOT commit certain acts that are discreditable to the profession.
These might include:
* Pro____ing a fee estimate to a client for services, when the accountant expects the actual fee to be substantially higher (Deliberate underbidding).
* Negligence in the pre_______n of Financial Statements.
* Filing a fraudulent t__ return for self or client.
* Com________ of a Felony.
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.
87
Acts Discreditable
A member should NOT commit certain acts that are discreditable to the profession.
These might include:
* Providing a fee est______ to a client for services, when the accountant expects the actual fee to be substantially higher (Deliberate underbidding).
* Negligence in the preparation of F________ Statements.
* Filing a fraudulent tax return for self or c_____.
* Commission of a Felony.
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.
88
Acts Discreditable
A member should NOT commit certain acts that are discreditable to the profession.
These might include:
* Nonc_________ with applicable requirements of go__________ 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 qu_______s and answers.
* False, misleading, or deceptive acts in pro____ing or marketing professional services
* Inappropriate use of the CPA cre____ial
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
89
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 ag___ies when operating within their jurisdiction, including the S__, Federal Communications Commission, or the PCA__;
* Solicitation or disclosure of CPA examination questions and answers.
* Fa___, misleading, or deceptive acts in promoting or marketing professional services
* Ina________ use of the CPA credential
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
90
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;
* Soli______ or disclosure of CPA examination questions and an_____s.
* False, mis_____ing, or deceptive acts in promoting or marketing professional services
* Inappropriate u__ of the CPA credential
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
91
Acts Discreditable
A member should NOT commit certain acts that are disc_______ 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
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
92
Fees and Other Types of Remuneration
A member may NOT pre____ 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
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
93
Fees and Other Types of Remuneration
A member may NOT prepare an original or amended tax re____ for a contingent f__ or accept contingent f__s 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
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
94
Fees and Other Types of Remuneration
A member may NOT prepare an original or amended tax return for a con______ fee or accept con______ 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
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
95
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 in___________
* An examination of prospective financial statements
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
96
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 ex________n of prospective financial statements
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
97
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 au___ 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
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
98
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 st__________s
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
99
Fees and Other Types of Remuneration
Con________ 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
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
100
Fees and Other Types of Remuneration
Contingent fees are permitted when performing certain tax-related services, including:
* Representing a c____ in an examination of an income tax return
* Filing an amended income tax return claiming a refund:
o Based on a tax is____ 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
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
101
Fees and Other Types of Remuneration
Contingent fees are permitted when performing certain tax-related services, including:
* Rep_______ing a client in an examination of an income tax re___
* Filing an am___ed 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
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
102
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 ev___ing position
o In an amount greater than the thr____d for review by the Joint Committee on Internal Revenue Taxation or state taxing authority
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
103
Fees and Other Types of Remuneration
Contingent fees are per___ed 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
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
104
Fees and Other Types of Remuneration
A member may accept com______s and referral fees only if both:
* Non-attest engagement client.
* Payment fully disclosed to client.
No com_______ may be accepted if the accountant is required to be independent for the service provided.
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.
105
Fees and Other Types of Remuneration
A member may accept commissions and referral fees only if both:
* Non-attest eng________ client.
* Payment fully disclosed to client.
No commission may be accepted if the accountant is required to be i___________ for the service provided.
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.
106
Fees and Other Types of Remuneration
A member may accept commissions and referral fees only if both:
* Non-_____ engagement client.
* Pa_____ fully disclosed to client.
No commission may be accepted if the accountant is required to be independent for the service provided.
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.
107
Fees and Other Types of Remuneration
A member may accept commissions and referral fees only if both:
* Non-attest engagement client.
* Payment fully di______ed to client.
No commission may be accepted if the accountant is re_____ed to be independent for the service provided.
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.
108
Advertising and Other Forms of solicitation
A member may NOT engage in false, misleading, or deceptive ad_____ing.
Advertising and Other Forms of solicitation
A member may NOT engage in false, misleading, or deceptive advertising.
109
Advertising and Other Forms of solicitation
A member may NOT en_____ in false, misleading, or deceptive advertising.
Advertising and Other Forms of solicitation
A member may NOT engage in false, misleading, or deceptive advertising.
110
Advertising and Other Forms of solicitation
A member may NOT engage in f____e, misleading, or deceptive advertising.
Advertising and Other Forms of solicitation
A member may NOT engage in false, misleading, or deceptive advertising.
111
Advertising and Other Forms of solicitation
A member may NOT engage in false, mis_____ing, or deceptive advertising.
Advertising and Other Forms of solicitation
A member may NOT engage in false, misleading, or deceptive advertising.
112
Advertising and Other Forms of solicitation
A member may NOT engage in false, misleading, or de______ advertising.
Advertising and Other Forms of solicitation
A member may NOT engage in false, misleading, or deceptive advertising.
113
Confidential Information
Information is considered con______, 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 inf________ to another CPA as a professional courtesy and may not take copies of client files when leaving the firm.
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.
114
Confidential Information
Information is considered confidential, not privileged. Must not reveal information without client per_______ 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 cou____y and may not take copies of client files when leaving the firm.
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.
115
Confidential Information
Information is considered confidential, not privileged. Must not re_____ 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 pro_________ courtesy and may not take copies of client files when leaving the firm.
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.
116
Confidential Information
Information is considered confidential, not privileged. Must not reveal information without client permission with certain exceptions:
* Valid sub_____ or summons.
* Inquiry by AICPA trial bo___.
* A request made as part of a Quality c_____ 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.
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.
117
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 re_____ made as part of a Quality control p____ 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.
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.
118
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 Cou____.
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.
119
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 mis_____ing.
* A firm cannot designate itself as “members of the AICPA” unless ___ 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.
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.
120
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 n___ 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 n___ of a former partnership for up to __ years (applies when all other partners have died or withdrawn).
* A firm n___ may include n___s of past partners.
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.
121
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 d_ed or w_______).
* A firm name may include names of past partners.
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.
122
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 des______ 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 p___ partners.
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.
123
Part 2 is applicable to members in pri____ industry.
A member who is both in pri____ industry and public practice, the requirements applicable to a member in public practice will apply.
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.
124
Part 2 is applicable to members in private industry.
A member who is both in private industry and public practice, the req______s applicable to a member in public practice will apply.
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.
125
Integrity and Objectivity
As is true for members in public accounting, those in private industry shall
maintain objectivity and int_____,
avoid conflicts of interest, and
not knowingly misrepresent facts or subordinate ju______
in the performance of any professional service.
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.
126
Integrity and Objectivity
As is true for members in public accounting, those in private industry shall
maintain ob______y and integrity,
avoid con_____s of interest, and
not knowingly misrepresent facts or subordinate judgment
in the performance of any professional service.
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.
127
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 mis________ f____s or subordinate judgment
in the per________ of any professional service.
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.
128
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 pro________ care.
* Ade______y plan and supervise engagements.
* Obtain suf______ relevant data to afford a reasonable basis for conclusions and recommendations.
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.
129
General Standards
A member must com___ 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.
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.
130
Acts Discreditable
A member should NOT commit certain acts that are discreditable to the profession.
These might include:
* Vio______ns of laws related to discrimination or harassment in the workplace.
* Sol______ 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
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
131
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 exa________ questions and answers.
* Nonpayment of a t__ liability or not filing a return
* Preparing financial statements in a negligent manner
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
132
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 an_____s.
* Nonpayment of a tax liability or not filing a return
* Preparing financial statements in a neg_____ manner
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
133
Part 3 is applicable to members who are neither in public accounting or private industry,
such as a member who is ret___ed or unemployed.
Part 3 is applicable to members who are neither in public accounting or private industry,
such as a member who is retired or unemployed.
134
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 har______ in the workplace.
* Solicitation or disc______ of CPA examination questions and answers.
* Nonp______ of a tax liability or not filing a return
* Disclosing conf________ information obtained as a result of previous relationships
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
135
Acts Discreditable
A member should NOT com___ 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
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
136
Consulting Services Standards
```
Consulting services consist of
advisory services,
implementation services,
product services or
providing technical assistance in implementing a new IT system.
```
I___________ need not be maintained, but the consultant must act with integrity and objectivity.
A written or oral understanding with the client should be established.
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.
137
Consulting Services Standards
```
Consulting services consist of
ad_____y services,
imp_________ 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.
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.
138
Consulting Services Standards
```
Consulting services consist of
advisory services,
implementation services,
product services or
providing te______ 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.
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.
139
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 un________ing with the client should be established.
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.
140
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 es______ed.
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.
141
Consulting Services Standards
• General standards of the profession, which apply to all services performed by the CPA
o Professional Com_______ (T)
o D__ professional care (P)
o Planning and supervision (P)
o Sufficient relevant data (C)
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)
142
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 sup_______ (P)
o Suf_______relevant data (C)
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)
143
Consulting Services Standards
• General s_________s 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)
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)
144
Consulting Services Standards
Additional general standards apply specifically to consulting services:
• Client in______
– must act with in_______ 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.
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.
145
Consulting Services Standards
Additional general standards apply specifically to consulting services:
• Client interest
– must act with integrity and ob_______
(need NOT be independent) while seeking to fulfill client’s ob______s.
• Un_________ing with client
– written or oral agreement to perform engagement.
• Com_________ with client:
o Disclose conflicts of interest.
o Cite reservations about potential benefits of engagement.
o Provide findings in appropriate oral or written form.
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.
146
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 ag_______ to perform engagement.
• Communication with client:
o Dis_____ conflicts of interest.
o Cite reservations about potential benefits of engagement.
o Provide findings in appropriate oral or written form.
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.
147
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 be_____s of engagement.
o Provide f_____s in appropriate oral or written form.
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.
148
Consulting Services Standards
Additional general standards apply spe______y 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.
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.
149
Statements on Standards in Personal Financial Planning Services (PFP)
CPAs often help clients by performing per______ financial planning services, which involves assisting clients in identifying and establishing personal financial goals and resources.
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.
150
Statements on Standards in Personal Financial Planning Services (PFP)
CPAs often help clients by performing personal financial planning services, which involves as____ing c_____s in identifying and establishing personal financial goals and resources.
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.
151
Statements on Standards in Personal Financial Planning Services (PFP)
CPAs often help clients by performing personal financial planning services, which involves assisting clients in i______ing and es_____ing personal financial goals and resources.
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.
```
152
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.
```
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.
```
153
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:
* Re______s to the public or clients that PFP services are being provided;
* Per____s 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.
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.
154
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 c____s that PFP services are being provided;
* Performs activity that require registration as an investment ad____ under federal or state jurisdictions; or
* S___s a product or service as a result of the engagement.
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.
155
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 in_______ advisor under federal or state jurisdictions; or
* Sells a product or service as a result of the en_________.
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.
156
Statements on Standards in Personal Financial Planning Services (PFP)
A CPA performing PFP services is only required to be in_________ if also performing attest services for that client, which require in___________.
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.
157
Statements on Standards in Personal Financial Planning Services (PFP)
A CPA performing PFP services is only required to be independent if also performing att___ services for that client, which require independence.
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.
158
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 req_______s under the AICPA Code of Professional Conduct.
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.
159
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 ev______ the services performed and the relationship with the client in the context of the independence requirements under the AICPA Code of Pro_______ Conduct.
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.
160
Statements on Standards in Personal Financial Planning Services (PFP)
A CPA performing PFP services should adhere to certain general requirements. These include:
• Comp______ with all applicable ethical requirements
• Possession of kn______ 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.
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.
161
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 g___s,
ana____ relevant information,
apply appropriate approaches, and
develop recommendations using professional judgment.
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.
162
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 eth____ requirements
• Pos______ of knowledge of PFP principles and skills adequate to
allow the CPA to identify client goals,
analyze relevant information,
apply appropriate approaches, and
develop re________s using professional judgment.
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.
163
Statements on Standards in Personal Financial Planning Services (PFP)
A CPA performing PFP services should adhere to certain general requirements. These include:
* Eva______ of potential con____s of interest regarding the engagement.
* Comp______ with applicable laws and regulations.
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.
164
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 in_____ regarding the engagement.
* Compliance with applicable l__s and regulations.
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.
165
Statements on Standards in Personal Financial Planning Services (PFP)
A CPA per____ing 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.
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.
166
Statements on Standards in Personal Financial Planning Services (PFP)
Prior to the engagement, the CPA should disclose in w___ing all compensation that the CPA and its firms or affiliates will receive, including any compensation alternatives.
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.
167
Statements on Standards in Personal Financial Planning Services (PFP)
Pr___ 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.
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.
168
Statements on Standards in Personal Financial Planning Services (PFP)
Prior to the engagement, the CPA should disclose in writing all com________ that the CPA and its firms or affiliates will receive, including any com_______ alternatives.
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.
169
Statements on Standards in Personal Financial Planning Services (PFP)
SSPFPS address five issues in relation to PFP services. These include:
* Pl___ing the engagement
* Obtaining and analyzing information
* Developing and communicating recommendations
* Im_________ engagements
* Mon____ing and updating engagements
They also provide guidance when either working with, or using advice provided by, another service provider.
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.
170
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
* De_____ing and communicating re__________s
* Implementation engagements
* Monitoring and updating engagements
They also provide guidance when either working with, or using advice provided by, another service provider.
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.
171
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 an____ing information
* Developing and communicating recommendations
* Implementation engagements
* Monitoring and up___ing engagements
They also provide guidance when either working with, or using advice provided by, another service provider.
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.
172
Statements on Standards in Personal Financial Planning Services (PFP)
SSPFPS address five issues in relation to PFP services. These include:
* Planning the en_________
* Obtaining and analyzing information
* Developing and com______ting recommendations
* Implementation engagements
* Monitoring and updating engagements
They also provide guidance when either working with, or using advice provided by, another service provider.
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.
173
1. Planning
The primary p____ing 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.
Statements on Standards in Personal Financial Planning Services (PFP)
SSPFPS address 5 issues in relation to PFP services. These include:
1. Planning the engagement
2. Obtaining and analyzing information
3. Developing and communicating recommendations
4. Implementation engagements
5. Monitoring and updating engagements
------------
1. 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.
