Chapter 4 special need for ethical conduct in professions

Question 1

The Code of professional conduct is meant to provide a standard of conduct for ?

Answer 1

all members of the AICPA

Question 2

CPAs in the US must follow the AICPAs what?

Answer 2

code of professional conduct

Question 3

T/F Our society has not attached a special meaning to the term professional.

Answer 3

F

Question 4

What does the SEC do for ethics?

Answer 4

plays significant role in establishing independence standards for auditors of public companies

Question 5

CPA firms have a different relationship with users of financial statements than most professionals have with their customers. what is the difference?

Answer 5

most professionals primary responsibility it to their client a CPA firms primary responsibilty is to the users of financial statement

Question 6

professional means A responsibility for conduct that what? (2)

Answer 6

1. extends beyond satisfying individual responsibilities
2. extends beyond the requirements of our society’s laws and regulations

Question 7

What does the term professional mean?

Answer 7

A responsibility for conduct that extends beyond satisfying individual responsibilities and beyond the requirements of our society’s laws and regulations

Question 8

it is essential that users of the financial statements regard CPA firms as what (2)

Answer 8

competent unbiased

Question 9

As a member of IFAC (internation federation of accountants) , the AICPA agrees to have ethical standards that are what?

Answer 9

at least as stringent as the IESBA ethic standards

Question 10

T/F CPA firms have a different relationship with users of financial statements than most professionals have with their customers

Answer 10

T

Question 11

What are the two most influential factors in the US for ways the profession and society encourage CPAs to conduct themselves at a high level?

Answer 11

1. PCAOB and SEC 2. AICPA Code of Professional Conduct

Question 12

The PCOAB is authorized to do what for public companies?

Answer 12

1. establish ethics
2. establish independence standards for auditors of public companies

Question 13

A responsibility for conduct that extends beyond satisfying individual responsibilities and beyond the requirements of our society’s laws and regulations. this is definition of the term?

Answer 13

professional

Question 14

what are the ways the profession and society encourage CPAs to conduct themselves at a high level (9)

Answer 14

1. CPA exam
2. Continuing education
3. legal liability
4. Peer review
5. AICPA practice and quality centers
6. Quality control
7. Auditing standards and interpretations
8. PCAOB and SEC
9. Code of professional conduct

Question 15

What does the IESBA do (International Ethics STandards Board for Accountants)?

Answer 15

established ethical standards and guidance and fosters international debate on eithical issues faced by accountants through it code of ethics for professional accountants

Question 16

a CPA , as a professional, recognizes a responsibility to who and what (4)

Answer 16

1. the public
2. the client
3. fellow practicitioners
4. honorable behavior even if it means personal sacrifice

Question 17

users seeing CPA firms as competent and unbiased is contingent on what?

Answer 17

the CPA firms conducting themselves at a high professional level (performance and conduct)