Discreditable Acts Flashcards
What are discreditable acts?
There are several but here are a few…
1 Disclose CPA exam questions and answers
2 After termination removing client files
3 Material departure from the audit standards of government bodies, commissions and other regulatory agencies
4 Negligence in preparing financial statements and reports
5 False, misleading, or deceptive acts in promoting professional services
Four types of records requests?
1 Client-prepared records
2 Member-prepared records
3 Member’s working product
4 Working Papers
What is a Client-prepared record?
Records given by the client to the members (the clients paperwork)
What is a Member-prepared record?
Items the member was not specifically engaged to prepare and are not in the clients records, rendering the client’s financial information incomplete ex: supporting docs, schedules, adjusting
What is Member’s work product?
Deliverable set forth in the engagement letter ex: tax returns completed
What are Working papers?
Items prepared solely for purposes of the engagement, prepared by both the member and the client ex: audit program, analytical work, work done at the members request
Proper treatment of requests for client-provided records.
These should be delivered to the client at the clients request, even if the client hasn’t paid their bill
Proper treatment of requests for member-prepared records
Should be delivered to the client at their requests, except if they have an unpaid bill
Proper treatment of requests for work product…
Should be delivered to client if requested except if:
Unpaid bill, work is incomplete, to comply with professional standards or if threatened litigation exits concerning work the engagement
Proper treatment of requests for Working papers…
Are the members property and need not be provided to the client (unless regulations or contractual provisions require)
