Ethics, Independence, Professional Responsibilities

Question 1

Unpaid fees for more than ___ Year before current years report impair independence

Answer 1

Unpaid fees for more than 1 year impair independence.

Question 2

Acts discreditable to the profession

Answer 2

• Refusal to return client records
• Negligence in preparation of financial statements
• Illegal acts
• Solicitation or disclosure of CPA exam questions

Question 3

What is SOX Act

Answer 3

Prohibits Officers and Directors form issuing misleading Fin Statements

Question 4

If a CPA or CPA’s immediate family has direct or material indirect financial interest in a third party, Independence is impaired if _______

Answer 4

The third party or client has a material investment in and significant influence over the other.

Question 5

SOX Title II: ______

Answer 5

Question 6

Levels of requirement in auditing standards ____

Answer 6

Question 7

Audit Independence for employee benefit plans are impaired by _______

Answer 7

Question 8

Sox prohibits audit firms from auditing clients if any auditor begins working for the client in a financial reporting oversight role within one year.

Answer 8

Its like if i became controller for Krikey, FRCO couldnt audit Krikey for a year.

Question 9

Sox requires audit and reviewing partners to rotate off engagements every ______ years

Answer 9

5 years

Question 10

Sox Objectivity vs independence

Answer 10

Question 11

List of independence and non attest services that impair or do not impair indp.

Answer 11

Question 12

SOX prohibited non audit services

Answer 12

Question 13

Auditor independence for EBPs.

Answer 13

Question 14

Independence threats in Government auditing standards (edit this)

Answer 14

Question 15

If a CPAs spouse or dependent receives a financial interest in an attest client through ESOP, it must be disposed of no later than _____ days after the right to do so is obtained,

Answer 15

30 days

Question 16

Client records rules and examples

Answer 16

Question 17

Supervising a client personnel or taking management responsibilities for a client ________ independence

Answer 17

Impairs independence.

Question 18

Exceptions to sharing client confidential pbc.

Answer 18

Question 19

Audit Committee functions ___

Answer 19

Question 20

SOX Internal Controls, management vs auditors

Answer 20

Question 21

Requirements to work at a former firms client.

Answer 21

Question 22

Advisory services for nonissuers rules and examples

Answer 22

Question 23

Requirements of due care

Answer 23

Question 24

Contingent fees make the price of services dependent on their outcome. CPAs are prohibited to provide contingent fees for____?

Answer 24

• Tax returns/refund claims
• Audits, Reviews, Compilations
• Examinations of prospective Financial statements.

Question 25

Which CPA services require independence?

Answer 25

Question 26

In order to accept audit engagement, an independent audit must have __________

Answer 26

Question 27

Additional requirements to GAAS for reports on GAGAS FS audits

Answer 27

Internal control, compliance

Question 28

a plaintiff must prove all 5 elements to be successful in a negligence lawsuit against an accountant. What are the 5 elements.

Answer 28

Question 29

Quality control elements for a CPA firm (HEAL-ME)

Answer 29

Question 30

If the nature of a CPAs practice reveals confidential info, such as the CPA focuses on bankruptcy businesses, revealing the clients name might violate __________ under the AICPA code of professional conduct

Answer 30

Client confidentiality. A clients name is not usually confidential, but the nature of the CPA practice, bankruptcy, might imply confidential info so the name shouldn't be disclosed.

Question 31

GAAS and the PCAOB provide guidance for gathering sufficient appropriate evidence for an audit opinion, while the AICPA code of professional conduct sets forth ________

Answer 31

Quality control standards as safeguards to ensure quality audit performance

Question 32

The SEC, members of an audit committee may receive compensation such as director fees,r etainers, and meeting fees for service on the board, but may not ________

Answer 32

- Accept any other consulting, advisory, or compensatory fee from the company - Be affiliated with the company

Question 33

Audit committee responsibilities

Answer 33

Question 34

Bookkeeping services prohibited/permitted for nonissueers

Answer 34

Question 35

Examples of absence of due care from a CPA

Answer 35

Question 36

SOX nor the PCAOB prohibit the preparation of an audit clients original ________

Answer 36

tax return

Question 37

MIPP vs MIB?

Question 38

According to Title 1 of SOX, the SEC has oversight over _____

Answer 38

The PCAOB.

Question 39

Auditors who are not covered members may not own more than ___% of a clients stock without impairing independence.