Audit

Question 1

Can MIPPS advocate for their attest clients?

Answer 1

THEY MAY NOT!

Question 2

CAN MIPPS advocate their clients for advisory and tax services ?

Answer 2

They can but should not threaten objectivity and integrity

Question 3

True or False:
If the client objects to outsourcing of professional services, then the member should either not outsource the work or decline to provide the service altogether.

Answer 3

True

Question 4

True or False:
Client-provided records should be delivered to the client at the client’s request, even if the client has not paid its bill to the member.

Answer 4

True

Question 5

True or False:
Working papers are the member’s property and need not be provided to the client (unless some regulation or contractual provision requires production).

Answer 5

True

Question 6

True or False:
Work products should be delivered to the client at the client’s request, except that they may be withheld under four circumstances:
Fees are due for the specific work product.
The work product is incomplete.
To comply with professional standards (e.g., withholding an audit report because of unresolved audit issues).
If threatened or outstanding litigation exists concerning the engagement or the member’s work.

Answer 6

True

Question 7

True or False:
Member-prepared records related to a completed and issued work product should be delivered to the client at the client’s request, except that they may be withheld if fees are due for that specific work product.

Answer 7

True

Question 8

What kind of documentation may be retained by a CPA

Answer 8

Only audit documentation may be retained indefinitely by a CPA

Question 9

Confidential Information:

General Rule—??

Answer 9

A member in public practice shall not disclose confidential client information without the specific consent of the client.

Question 10

Confidential Information- Exceptions

Answer 10

1) Client consents
2) Disclosure is permitted by law and authorized by the employer
3) Disclosure is required by law

Question 11

Contingent Fee:

According to the Code of Professional Conduct of the AICPA, which type of service may a CPA NOT receive a contingent fee

Answer 11

1) Performing an audit of F/S
2) Performing a review of F/S
3) Performing an examination of prospective F/S

Question 12

Immaterial departures from GAAP, which do not require material modifications, do or do not violate the Code of Professional Conduct?

Answer 12

DO NOT Violate

Question 13

Which firms must have a majority of their financial interests owned by CPAs?

Answer 13

Attest firms