Ch 2 Connect + Gleim Flashcards
which kind of firms and companies does the PCAOB regulate?
public (issuers)
Which organization has oversight and enforcement authority over the PCAOB?
SEC
Which principle is most closely related to gathering audit evidence?
Performance
if a public accounting firm says it always follows the rule that required adherence to FASB pronouncements in order to give a standard unmodified auditor’s report, it is characterized by
the imperative principle
which of the following threats is not an AICPA identified threat to indepedence?
familiarity
undue influence
conflict of interest
advocacy
conflict of interest
Which of the following is a close relative (but not immediate family member) according the AICPA
uncle
spouse
parent
parent
AICPA members who work in industry and government must uphold which two rules of conduct?
Integrity and Objectivity Rule
Acts Discreditable Rule
the audit committee’s responsibility for auditor independence concerns:
ensuring that nonaudit services provided by the auditor do not impair independence
ensuring that the auditor is independent in appearance is the responsibility of:
the audit committee
a commitment to act for the benefit of clients, creditors, investors, and others is most directly embodied in which principle?
the public interest
which activity performed as nonattest services for a nonpublic attest client impairs a CPA’s independence?
determining which recommendations for improving internal control should be implemented
true/false
performing advisory services does not, by itself, impair the independence required for attest services
true
an auditor strives to achieve independence in appearance in order to:
maintain public confidence in the profession
“objectivity” refers to
maintaining an impartial attitude on all matters that come under the CPA’s review
