Code of Professional Conduct

Question 1

The code has three parts

Answer 1

MIPP-Members in Public Practice
MIB-Members in Business
OM-Other Members

Question 2

Six major principles of Professional Conduct

Answer 2

1 Objectivity and Independence Prin
2 Due Care Prin
3 Responsibilities Prin
4 Integrity Prin
5 Public Interest Prin
6 Scope & Nature of Srvcs Prin

Question 3

Objectivity and Independence Prin?

Answer 3

Maintain objectivity and be free of conflicts of interest in discharging professional responsibilities. Members in public practice should be independent in fact and appearance

Question 4

Objectivity is a state of mind that imposes what?

Answer 4

Free from conflicts of interest
Impartiality
Intellectual honesty

Question 5

Due Care Prin?

Answer 5

1 Improve competence
2 Observe professional and technical standards
3 Improve quality of service
4 Conduct professional responsibility to the best of my ability
5 Critical review of judgement exercised at every level of supervision

Question 6

Responsibilities Prin?

Answer 6

Exercise sensitive professional and moral judgement in all activities and cooperate with each other

Question 7

Additional Responsibilities Prin?

Answer 7

1 Improve the act of accounting
2 Maintain public confidence
3 Carry out the profession’s special responsibilities for self-governance

Question 8

Public Interest Prin?

Answer 8

Accept the obligation to act in a way to serve the public interest, honor the public trust and demonstrate commitment to professionalism

Question 9

Public Interest Prin mark?

Answer 9

A distinguished mark of a profession is acceptance of it’s responsibility to the public

Question 10

Scope and Nature of Services Prin?

Answer 10

a member in public practice should observe the principles of the code of professional conduct in determining the scope and nature of services

Question 11

Audits must maintain…

Answer 11

1 Integrity
2 Objectivity
3 Independence of Fact
4 Independence of Appearance

Question 12

Compilation must maintain…

Answer 12

1 Integrity

2 Objectivity

Question 13

Tax must maintain…

Answer 13

1 Integrity

2 Objectivity

Question 14

Consulting must maintain…

Answer 14

1 Integrity

2 Objectivity

Question 15

For the scope and nature principle a member at a minimum should?

Answer 15

1 Practice in firms with good internal controls
2 Use judgement to determine whether the scope and nature of services would create conflicts of interest
3 Assess if a job/contemplated activity is consistent with their role as a professional

Question 16

What is Compilation?

Answer 16

The results of an accounting service known as write-up work. Compilation aka compiled financials, the outside accountant converts the data provided by the client into financial statements w/o providing assurance

Question 17

What is attest work?

Answer 17

A function that encompasses all research done in an audit including all of the testing and examination of a company’s data and numbers

Question 18

What does Independence preclude?

Answer 18

It precludes relationships that may appear to impair a member’s objectivity in rendering attestation services.