Audit #2 Flashcards
2.01 The AICPA Code of Professional Conduct can be broken down into what four parts?
- The preface (includes all members)
- Part 1 (includes public accountants)
- Part 2 (includes accountants in industry)
- Part 3 (all members including retired/unemployed)
2.01 What is included in the preface of the AICPA Code of Professional Conduct
- Overview of the code of Professional Conduct
- Structure and application of the AICPA code
- Principles of Professional Conduct
- Definitions
- Non-authoritative guidance
- New, Revised, and Pending Interpretations and Other Guidance
2.01 Which enumerated topics and subtopics apply to Part 1, Part 2 and Part 3 members?
1.000 - Introduction
1.100 Integrity and Objectivity
1.200 Independence
1.300 General Standards
1.310 Compliance with Standards
1.320 Accounting Principles
1.400 Acts Discreditable
- 500 Fees and Other Types of Remuneration
- 600 Advertising and Other Forms of Solicitation
- 700 Confidential Information
- 800 Form of Organization and Name
2.01 The Code of Conduct Preface Topic 100 specifies two key items what are they?
- Indication that CPA’s are expected to follow interpretations, and may be required to justify departures from the.
- Indication that when a CPA has multiple professional roles, the highest and most restrictive level of standards should be applied.
2.01 The Code of Conduct Topic 200 specifies what?
Topic 200 indicates its applicability of the services performed by CPA, and what few exceptions of services the Code of Conduct does not apply to.
Rules require CPA’s to: Consider, evaluate and determine
2.01 The Code of Conduct Topic 300 specifies what?
It describes the principles embedded in the code.
2.01 What Principles are described as part of Topic 300 of the AICPA Code of Conduct?
- Responsibilities - requires the application of sensitive professional and moral judgement
- Public Interest - Acting in a manner that serves the public interest (integrity, objectivity, due professional care)
- Integrity
- Objectivity and Independence - independence in fact and in appearance
- Due Care - compliance with technical and ethical standards
- Scope and Nature of Service - evaluate if services can be performed under the code of conduct
2.01 The Code of Conduct Topic 400 specifies what?
Topic 400 provides the definition for terms used throughout the code
2.01 The Code of Conduct Topic 500 specifies what?
Topic 500 specifies that only the Code is authoritative and Professional Ethics Division of the AICPA is non-authoritative guidance
2.01 The Code of Conduct Topic 600 specifies what?
Topic 600 indicates the status of new, revised or pending interpreations and other guidance
2.01 The Code of Conduct Topic 1.000 Introduction specifies what?
It introduces a conceptual framework approach to applying the code.
2.01 What does the Conceptual framework approach involve as part of Topic 1.000 of the AICPA Professional Code of Conduct?
- Identify Threat
- Evaluate the significance of identified threat
- Identify and apply safeguards
2.01 What are the seven categories of threats identified in Topic 1.210 of the AICPA Code of Conduct?
- Self Review
- Advocacy - the accountants actions effectively promote a clients interest or position - endorses product of client
- adverse interest - client and accountant were involved in litigation against each other
- familiarity
- Undue Influence - client threat to replace accountant
- Self Interest
- Management Participation - Accountant performs management function for client
2.01 The Code of Conduct Topic 1.100 specifies what?
Topic 1.100 Integrity and Objectivity is required by accountants.
2.01 The Code of Conduct Topic 1.110 specifies what?
Topic 1.110 - conflict of Interest - Before accepting an engagement or a relationship the CPA should evaluate a potential conflict of interest by identifying
2.01 The Code of Conduct Topic 1.120 specifies what?
Topic 1.120 Gifts & Entertainment
2.01 The Code of Conduct Topic 1.130 specifies what?
Topic 1.130 Preparing and Reporting Information AFRF
2.01 The Code of Conduct Topic 1.140 specifies what?
Topic 1.140 Client Advocacy - when performing certain non-attest services for a client, such as tax consulting services may put the accountant in a position to ADVOCATE for the client and may pose a threat to the members ability to comply with the integrity and objectivity rules that should be evaluated