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ACCT 563 > Exam 1 > Flashcards

Exam 1 Flashcards

1
Q

•Describe the framework used to organize the AICPA Code of Professional Conduct 651

A
  • Principles of professional conduct – setting forth ideal attitudes and behaviors
  • Rules of conduct – defining minimum standards
  • Interpretations of rules of conduct
  • Rulings by the professional ethics executive committee
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2
Q

•Why is it important for an auditor to be independent of entities for which they perform attestation services? 654

A

•If an auditor is not perceived to be independent of the audited entity, it is unlikely that a user of financial statements will place much reliance on the CPA’s work

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3
Q

•What standard do CPAs use to evaluate their independence when a situation is not explicitly described by Rules or Interpretations?

A

•Reasonably informed person seeing the firm as independent, investing public view matters

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4
Q

•Describe the two types of financial relationships that compromise independence.

A
  • Direct financial interest – financial interest that is owned directly by an individual or entity
  • Indirect financial interest – a) an auditor or other covered member has a financial interest in an entity that is associated with an attest entity; b) the financial interest is beneficially owned through an investment vehicle, estate, trust or intermediary; and c) the auditor does not control the intermediary or have authority to supervise or participate in the intermediary’s investment decisions
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5
Q

•Under what conditions do loans made under a financial institution’s normal lending procedures, terms, and requirements NOT impair a member’s independence?

A
  • Automobile loans and leases collateralized by the auto
  • Loans fully collateralized by the surrender value of an insurance policy
  • Loans fully collateralized by cash deposits at the same financial institution
  • Credit cards and cash advances where the aggregate outstanding balance is reduced to $10,000 or less by the payment due date
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6
Q

•When will fees pertaining to services provided that have been outstanding for more than a year NOT impair an auditor’s independence?

A

•Unpaid fees from an audited entity that is in bankruptcy do not impair the auditors independence

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7
Q

•Under what conditions can financial or business interests held by a close relative of the auditor impair independence?

A
  • A close relative has a financial interest in the entity that is material to the close relative, and the CPA participating in the engagement is aware of interest
  • An individual participating in the engagement has a close relative who could exercise significant influence over the financial or accounting policies of the entity
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8
Q

•Explain why litigation could impair auditor independence.

A

•Threatened or actual litigation between the entity and the auditor can impair the auditors independence

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9
Q

•Describe the three principles underlying the SEC’s rules with respect to services provided by auditors.

A
  • An auditor should not audit his or her own work
  • An auditor should not function in the role of management
  • An auditor should not serve in an advocacy role for the entity
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10
Q

•Describe the three employment-related independence rules for firms that audit public companies.

A
  • First the lead and engagement quality review partners on the engagement team for a public company audit are prohibited from providing audit services to entity for more than 5 years
  • If a partner goes to a client, cannot audit client for “one year” cooling off period
  • The SEC does not consider an accounting firm to be independent from an audited company if an audit partner receives compensation based on selling engagements to that entity for services other than audit, review, and attest services
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11
Q
  • Describe the mandate established by each of the following Rules of Conduct:
  • 102 Integrity and Objectivity
A

•102 Integrity and Objectivity – member shall maintain objectivity and integrity, shall be free of conflicts of interest and shall not knowingly misrepresent facts or subordinate his or her misjudgment to others

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12
Q

•Describe the mandate established by each of the following Rules of Conduct:

501 Acts discreditable

A

•501 Acts discreditable – a member shall not commit an act discreditable to the profession

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13
Q

•Describe the mandate established by each of the following Rules of Conduct:

502 Solicitation

A

•502 Solicitation - a member in public shall not seek to obtain clients by advertising or other forms of solicitation in a manner that is false, misleading, or deceptive. Solicitation by the use of coercion, over-reaching, or harassing conduct is prohibited.

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14
Q

•Describe the mandate established by each of the following Rules of Conduct:

503 Commissions

A

•503 Commissions – a member in public practice shall not for a commission recommend or refer to a client any product or service or for a commission recommended or refer any product or service to be supplied by a client, or receive commission

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15
Q

•Describe the mandate established by each of the following Rules of Conduct:

505 Form of Organization

A

•505 Form of Organization – a member may practice public accounting only in a form of organization permitted by law or regulation whose characteristics conform to resolutions of council

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16
Q

•What two sanctions might be imposed for violating the Code of Professional Conduct?

A

Lose your CPA

suspended license

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17
Q

•Why can’t the successor auditor talk with the predecessor auditor without client consent?(70)

A

•Because the Code of Professional Conduct does not allow an. Auditor to. Disclose confidential. Client information without the entity’s consent

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18
Q

•What five issues should the successor auditor discuss with the predecessor auditor? (70)

A
  • Information that might bear on the integrity of management
  • Disagreements with management about accounting policies, adding procedures, or other similarly significant matters
  • Communications to those charged with governance regarding fraud and noncompliance with laws or regulations by the entity
  • Communications to management and those charged with governance regarding significant deficiencies and material weakness in internal control
  • The predecessor auditor’s understanding about the reasons for the change of auditors
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19
Q

•What six procedures should auditors perform to evaluate a prospective client that has never been audited? (more on page 71)

A
  • Obtain and review available financial information
  • Inquire of third parties about any information concerning the integrity of the prospective client and its management team
  • Consider whether the prospective client has any circumstances that will require special attention or that may represent unusual business or audit risks; such as litigation or going concern
  • Determine if the firm is independent of the entity and able to provide the desired service
  • Determine if the firm has the necessary technical skills and knowledge of the industry to complete the engagement
  • Determine if the acceptance of the entity would violate any applicable regulatory agency requirements or the Code of Professional Conduct
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20
Q

Describe the following preliminary engagement activities: (71-72)

Determine audit team requirement

A

Determine audit team requirement – public accounting firms. Need to ensure that their engagements are completed by auditors having the proper degree of technical training and proficiency given the circumstances of the entity.

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21
Q

Describe the following preliminary engagement activities: (71-72)

Evaluate independence and ethical compliance

A

Evaluate independence and ethical compliance – Not violate independence and ethical requirements

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22
Q

Describe the following preliminary engagement activities: (71-72)

establish understanding with entity

A

establish understanding with entity – The understanding reduces the risk that either party may misinterpret what is expected or required of the other party

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23
Q

•Describe auditors’ objective for performing each of the following steps in the audit planning process: (77-80)

Assess business risks

A

Assess business risks – obtain an understanding of the entity and its environment, identify risks that may result in material misstatement, identify type of misstatement
•Business risk, risk that the process wont work the way it is supposed to

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24
Q

•Describe auditors’ objective for performing each of the following steps in the audit planning process: (77-80)

Establish materiality

A

Establish materiality – Materiality is a matter of professional judgement and will vary across entities; a dollar amount that will not affect financial statement users decision making

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25
Q

•Describe auditors’ objective for performing each of the following steps in the audit planning process: (77-80)

Consider multi-locations

A

Consider multi-locations – The auditor determines which locations or business units are to be audited and the extent of audit procedures to be performed at the selected locations or business units, assess the risks of material misstatement to the consolidated financial statements associated with location

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26
Q

•Describe auditors’ objective for performing each of the following steps in the audit planning process: (77-80)

Assess the need for specialists

A

Assess the need for specialists – Determine if there are aspects of the. Audit that need specialist expertise; finance, tax, IT, pension, etc.

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27
Q

•Describe auditors’ objective for performing each of the following steps in the audit planning process: (77-80)

Consider regulatory violations

A

Consider regulatory violations – Understand regulatory environment and determine what illegal acts are going to have an affect on materiality

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28
Q

•Describe auditors’ objective for performing each of the following steps in the audit planning process: (77-80)

Identify related parties

A

Identify related parties – Auditors should attempt to identify all related particles because the transaction may not be “at arms length”

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29
Q

•Describe auditors’ objective for performing each of the following steps in the audit planning process: (77-80)

Consider additional services

A

Consider additional services – What else can the auditor do for the client; risk assessment, assurance, business performance measurement, electronic commerce, auditor recommendations

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30
Q

•Describe auditors’ objective for performing each of the following steps in the audit planning process: (77-80)

Document the audit planning process

A

Document the audit planning process – Involves documenting the decisions about the nature, timing, and extent of audit tests

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31
Q

•What three primary activities must be performed to supervise the audit team? (81)

A

Inform engagement team members of their responsibilities

Direct engagement team members to bring any significant accounting and audit issues they identify to the attention of the engagement partner or other engagement team members performing supervisory activities so the can evaluate those issues and determine appropriate actions

Review the work of engagement team members

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32
Q

•What are the three procedures for assessing risk? (82)

A

Inquiries of management and others

Preliminary analytical procedures
•Get an estimate of what an account balance should be and compare to the actual balance

Observation and inspection

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33
Q

•What are four procedures for testing of controls? (82-83)

A

Inquiries of appropriate management, supervisory and staff personnel

Inspection of documents, reports, and electronic files

Observation of the application of. Specific controls

Walkthroughs , involving tracing a transaction from its origination to its inclusion in the financial statement through a combination of audit procedures, including inquiry, observation, and inspection

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34
Q

•What are two procedures for performing substantive tests? (83)

A

Tests of details

Substantive analytical procedures

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35
Q

•Why do auditors use dual purpose tests? (83-84)

A

Can improve the efficiency of the audit,

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36
Q

•What is materiality?

A

Amount of misstatement that the auditor believes is small enough that it will not affect decision making

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37
Q

•Why is materiality considered a relative rather than absolute concept? (85)

A

Set materiality for each engagement, based on size of the company

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38
Q

•How do most auditors determine overall materiality? (86)

A

Set a benchmark based on qualitative factors such as a percentage

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39
Q

•What (5) factors influence the percentage that auditors apply to their benchmark when they determine total materiality? (86)

A

Material misstatements in prior years

High risk fraud

The entity is close to violating a covenant in a loan agreement

Small amounts may cause the entity to miss forecasted revenues or earnings, or affect the trend in earnings

The entity operates in a volatile business environment, has complex (multi-locations), or operates in a highly regulated industry

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40
Q

•How do most auditors calculate tolerable misstatement to set materiality for accounts or classes of transactions?

A

At an amount or amounts that reduce to an appropriately low level the probability that the total of uncovered and undetected misstatements would result in material misstatement of financial statements.

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41
Q

•What (4) factors influence the percentage that auditors apply to overall materiality when they calculate tolerable misstatement? (87)

A

High risk of misstatement within the account balance, class of transaction, or disclosure;

Increased number of accounting issues that require significant judgement and/or more estimates with high estimation uncertainty;

A history of material weaknesses, significant deficiencies, and/or a high number of deficiencies in internal control;

High turnover of senior management or key financial reporting personnel

42
Q

•What could cause materiality to change from the planning stage to the evaluation stage?

A

Engagement conditions are different from what you thought they were going to be. Does it make sense, are the materiality estimates appropriate for this engagement

43
Q

•What is audit risk?

A

•The risk that auditors will not find material misstatements

44
Q

•How do auditors reduce the risk that they will not detect material misstatements?

A

•Gather evidence by performing the audit

45
Q

•How do inherent risk and control risk related to the risk of material misstatement?

A
  • The auditor has little or no control over these risks

* If the level of inherent and control risk increases the material misstatement is going to go up

46
Q

•What is the relationship between audit risk and auditors’ opinions on financial statements?

A

•Auditor’s procedures will fail to detect a material misstatement in a relevant assertion

47
Q

•Describe five categories of information that could influence business risk.

A
  • Nature of the entity
  • Industry, regulatory, and other external factors
  • Objectives, strategies, and related business risks
  • Entity performance measurements
  • Internal control
48
Q

•Why do auditors evaluate the entity’s risk assessment process?

A

•Whether it is operating effectively, auditors will have more work to do if the entity risk is higher

49
Q

•Why do auditors assess the risk of material misstatement?

A

•To determine the audit procedures that are necessary based on that risk assessment

50
Q

•What is the difference between misstatements due to errors versus fraud?

A

•Errors are unintentional and fraud is intentional

51
Q

•What two types of fraud are auditors concerned with?

A

Fraudulent reporting

theft

52
Q

•How do auditors assess the risk of fraud? (four)

A
  • Discussion among the audit team members regarding the risks of material misstatement due to fraud
  • Inquire of management and others about their views on the risks of fraud and how it is addressed
  • Consider any unusual or unexpected relationship that have been identified in performing analytical procedures in planing the audit
  • Understand the clients period-end closing process and investigate unexpected period-end adjustments
53
Q

•What three conditions are generally present when fraud occurs?

A
  • Management or other employees have an incentive or are under pressure that provides a reason to commit fraud
  • Circumstances exist that provide an opportunity for a fraud to be carried out
  • Those involved are able to rationalize committing a fraudulent act. Some individuals poses an attitude, character, or set of ethical values that allow them to knowingly and intentionally commit a dishonest act
54
Q

•Why do auditors assess the risk of material misstatement? (four)

A
  • Emphasizing to the audit team the need to maintain professional skepticism in gathering and evaluating audit evidence
  • Assigning more experienced staff or those with specialized skills or using specialists
  • Provide more supervision
  • Incorporating additional elements of unpredictability in the selection of audit procedures to be performed
55
Q

•How to auditors typically respond to misstatement risks that relate pervasively to the overall financial statements?

A

•The auditor should request that management eliminate the material misstatement or issue a qualified or adverse opinion

56
Q

•What must auditors do when their auditing procedures detect material misstatements?

A

•The auditor should request that management eliminate the material misstatement or issue a qualified or adverse opinion

57
Q

•What elements must auditors include in their documentation about risk assessment and response?

A

•Discussion among the engagement team, the significant decisions reached, how and when the discussion occurred, and the audit team members who participated

  • The steps performed in obtaining knowledge about the entity’s business and its environment, including
    • The risks identified
    • An evaluation of managements response to such risks
    • The auditors assessment of the risk of error or fraud after considering the entity’s response
    • Fraud risks or other conditions that caused the auditor to believe that additional audit procedures or other responses were required to address such risks or other conditions
    • The nature, timing, and extent of the procedures performed in response to the risk of material misstatement due to fraud and the results of that work
    • The nature of the communications about error or fraud made to management, the audit committee, and others
58
Q

•In what five ways can analytical procedures facilitate an effective audit?

A
  • Help the auditor understand the entity’s business
  • Directing attention To high risk areas
  • Identifying audit issues that might not otherwise be apparent
  • Providing audit evidence
  • Assisting in the evaluation of audit results
59
Q

•What four steps do auditors perform during analytical procedures?

A
  • Develop an expectation
  • Define tolerable difference
  • Compare the expectation to the recorded amount
  • Investigate differences greater than the tolerable difference
60
Q

•Describe the four factors that affect the precision of analytical procedures.

A
  • Disaggregation – monthly data will be more precise than expectations formed using annual data
  • The plausibility and predictability of the relationship being studied – the more plausible and predictable the relationship, the more precise the expectation
  • Data reliability – depends on the independence of the source of the data, data for analytical procedures are more reliable when the data are subjected to the audit in the current or prior periods and when the expectation is developed from multiple sources of data
  • Type of analytical procedure used to form an expectation – trend analysis is the least precise method used and reasonableness analysis is the most precise
61
Q

•How would you expect the following factors to influence the size of the tolerable difference? Explain. Page 162

Significance of the account being tested

A

Significance of the account being tested

•Will change the size of the tolerable difference to a smaller tolerable difference

62
Q

•How would you expect the following factors to influence the size of the tolerable difference? Explain. Page 162

Degree of reliance on evidence provided by the substantive procedure

A

Degree of reliance on evidence provided by the substantive procedure

•Smaller tolerable difference

63
Q

•What do auditors do when differences between expected and actual amounts do not exceed the tolerable difference?

A

•Auditor must investigate the difference using other audit procedures

64
Q

•Explain the four reasons why auditors could observe differences greater than the tolerable difference during analytical procedures.

A
  • Accounting changes
  • Economic conditions or events
  • Errors
  • Fraud
65
Q

•Describe three methods that auditors use to follow up and resolve significant differences observed during analytical procedures.

A
  • Quantification – auditor should quantify the portion of the difference that can be explained
  • Corroboration – examination of supporting evidence, inquiries of independent persons, and evaluating evidence obtained from other auditing procedures
  • Evaluation – appropriate professional skepticism and obtaining sufficient amount of appropriate audit evidence
66
Q

•What documentation should auditors provide when they perform substantive analytical procedures?

A
  • The expectation and how it was developed
  • Results of the comparison of the expectation to the recorded amounts or ratios developed from recorded amounts
  • Any additional auditing procedures performed in response to any significant differences identified
67
Q

•What types of account-level misstatements could be signaled by the following changes in financial ratios? Explain.

Unexpected increase in the current ratio

A

Unexpected increase in the current ratio

  • Accounts receivable overstated
  • Inventory overstated
  • Accounts payable understated
68
Q

•What types of account-level misstatements could be signaled by the following changes in financial ratios? Explain.

Unexpected decrease in inventory turnover

A

Unexpected decrease in inventory turnover

  • Obsolete goods – increase inventory that will not be sold, inventory should be measured at lower of cost or market, inventory that is obsolete should be wrote down
  • Cost of goods sold would be overstated
69
Q

•What types of account-level misstatements could be signaled by the following changes in financial ratios? Explain.

Unexpected increase in gross profit percentage

A

Unexpected increase in gross profit percentage

  • Failed to record sales
  • Errors that affect inventory ending balance (cogs)
  • Cost of goods sold
70
Q

•What types of account-level misstatements could be signaled by the following changes in financial ratios? Explain.

Unexpected increase in times interest earned

A

Unexpected increase in times interest earned

  • Interest expense could be misstated
  • Net income could be misstated
71
Q

•What two procedures must auditors perform before they document their understanding of internal control?

A
  • Evaluate the design of controls

* Determining if the controls have been implemented

72
Q

•What does it mean to set control risk at maximum?

A

•When you don’t rely on internal controls during the audit

73
Q

•For what three reasons might auditors choose a substantive strategy?

A
  • The implemented controls do not pertain to the assertion the auditor is considering
  • The implemented controls are assessed as ineffective
  • Testing the operating effectiveness of the controls would be inefficient
74
Q

•What three procedures do auditors who choose a reliance strategy perform before they begin substantive procedures?

A
  • Plan and perform test of controls
  • Assess the achieved level of control risk
  • Document the level of control risk
75
Q

•What steps do auditors take when results from tests of controls suggest that control risk is higher than originally planned?

A
  • Increase the planned substantive procedures and document the revised control risk assessment
  • Revise the audit plan to have more substantive procedures
76
Q

•In what three ways can auditors use knowledge gained while performing procedures that provide an understanding of internal controls?

A
  • Identify the types of potential misstatement
  • Pinpoint the factors that affect the risk of material misstatement
  • Design tests of controls and substantive procedures
77
Q

•What knowledge do auditors need to acquire about the following components of internal control:

Control environment

A

Control environment – understand managements and the board of directors attitudes, awareness, and actions concerning the control environment

78
Q

•What knowledge do auditors need to acquire about the following components of internal control:

Entity’s risk assessment process

A

Entity’s risk assessment process – understand how management considers risk relevant to financial reporting objectives and decides on appropriate actions to address those risks; environmental factors

79
Q

•What knowledge do auditors need to acquire about the following components of internal control:

Information and communication

A

Information and communication

  • The classes of transactions in the entity’s operations that are significant to the financial statements
  • The control procedures by which transactions are initiated, authorized, recorded, processed, and reported from their occurrence to their inclusion in the financial statements
  • The related accounting records, whether electronic or manual, supporting information, and specific accounts in the financial statements that are involved in initiating, recording, processing, and reporting transactions
  • How the information system captures other events and conditions that are significant to the financial statements
  • The financial reporting process used to prepare the entity’s financial statements, including significant accounting estimates and disclosures
80
Q

•What knowledge do auditors need to acquire about the following components of internal control:

Control activities

A

Control activities – understand the control activities that relate to assertions for which a lower level of control risk is expected

81
Q

•What knowledge do auditors need to acquire about the following components of internal control:

Monitoring of controls

A

Monitoring of controls – understanding of the major types of activities that the entity uses to monitor internal control, including the sources of information related to those activities, and how those activities are used to initiate corrective actions to its controls

82
Q

•Describe four tools that auditors can use to document their understanding of internal controls.

A
  • The entity’s procedures manuals and organizational charts
  • Internal control questionnaires
  • Flow charts
  • Narrative description
83
Q

•What three conditions can compromise control effectiveness?

A
  • Management override of internal control
  • Human errors or mistakes
  • Collusion
84
Q

•For what three reasons might auditors decide to perform interim tests of controls rather than waiting until after year end?

A
  • The assertion being tested may not be significant
  • The control has been effective in prior audits
  • More efficient to conduct the tests at that time
85
Q

•What factors do auditors consider when deciding whether to conduct substantive procedures only at an interim date? (six)

A
  • The control environment and other relevant controls
  • The availability of information at a later date that is necessary for the auditors procedures
  • The purpose of the substantive procedures
  • The assessed risk of material misstatement
  • The nature of the class of ransack ions or account balance and relevant assertions
  • The ability of the auditor to perform appropriate substantive procedures or substantive procedures combined with tests of controls to cover the remaining period in order to reduce the risk that misstatement that may exist at the period end will not be detected
86
Q

•Describe the four stages in the initiation and disposition of audit-related disputes.

A

oThe occurrence of events that result in losses for users of the financial statements

oThe investigation by plaintiff attorneys before filing suit to link the user losses with allegations of material omissions or misstatements of financial statements

oThe legal process that commences with the filing of the suit

oThe final resolution of the dispute

87
Q

•What is the difference between the way that common law and statutory law are established?

A

oCommon law – case law developed over time by judges who sue legal opinions when deciding a case (the legal principles announced in these cases become precedent for judges deciding similar cases in the future)

oStatutory law – written law enacted by the legislative branch of federal and state governments

88
Q

•Describe the four facts clients must prove to recover damages from an auditor for negligence?

A

oThe auditor had a duty to the client to conform to a required standard of care

oThe auditor breached that duty by failing to act with due professional care

oThere was a direct casual connection between the auditor’s negligence and the client’s damage

89
Q

•Describe the six defenses auditors can mount against negligence claims by clients?

A

oNo duty was owed

oThe client was negligent (contributory negligence, comparative negligence, or management fraud)

oThe auditor’s work was performed in accordance with professional standards

oThe client suffered no loss

oAny loss was caused by other events

oThe claim is invalid because the statute of limitations has expired

90
Q

•Describe facts a third party must prove to recover damages from an auditor for:

negligence (four)

A
  • The auditor has a duty to the plaintiff to exercise due care
  • The auditor breached that duty by failing to act with due professional care
  • There was a direct casual connection between the auditor’s negligence and the third party’s injury (financial statements were misleading and the third party relied on the financial statements)
  • The third party suffered an actual loss as a result
91
Q

•Describe facts a third party must prove to recover damages from an auditor for:

fraud and gross negligence (five)

A

fraud and gross negligence

  • A false representation by the accountant
  • Knowledge or belief by the accountant that the representation was false
  • That the accountant intended to induce the third party to rely on false representation
  • That the third party relied on the false representation
  • That the third party suffered damages
92
Q

•Describe the two different types of damages can be awarded under common law to plaintiffs of who prove that auditors were negligent?

A

Compensatory damages – they are awarded damages to return them to a position equivalent to where they would have been in the absence of the auditor’s negligence

Punitive damages – are awarded to punish outrageous conduct and may be awarded when the auditor is found guilty of fraud or constructive fraud under common law

93
Q

•How was the Securities Act of 1933 designed protect investors?

A

Regulates the disclosure of information in a registration statement for a new public offering of securities

94
Q

•Describe the two facts plaintiffs must prove to prevail in a suit filed under the Securities Act of 1933?

A

A loss was suffered by investing in the registered security

The audited financial statements contained a material omission or misstatement

95
Q

•How does the Securities Exchange Act of 1934 protect investors?

A

Regulates documents filed with the SEC and is concerned primarily with ongoing reporting by companies whose securities are listed and traded on a stock exchange or that meet certain other statutory requirements

96
Q

•Describe four facts plaintiffs must prove to prevail in a suit filed under the Securities Exchange Act of 1934?

A

A material, factual misrepresentation or omission

  • Reliance* by the plaintiff on the financial statements
  • Damages* suffered as a result of reliance on the financial statements
  • Scienter*
97
Q

•What were the two primary objectives of the Sarbanes-Oxley Act?

A

Restore investor confidence in the securities markets

Deter future corporate frauds

98
Q
  • Describe the mandate established by each of the following Rules of Conduct:
  • 201 General Standards
A

•201 General Standards – professional competence, due professional care, planning and supervision, and sufficient relevant data

99
Q
  • Describe the mandate established by each of the following Rules of Conduct:
  • 202 Compliance
A

•202 Compliance – Comply with professional standards. Promulgated by bodies designated by council

100
Q
  • Describe the mandate established by each of the following Rules of Conduct:
  • 203 Accounting principles
A

•203 Accounting principles – financial data are presented in conformity with GAAP, state that he or she is not aware of any material modifications that should be made to be in accordance with GAAP

101
Q
  • Describe the mandate established by each of the following Rules of Conduct:
  • 301 Confidentiality
A

•301 Confidentiality – a member in public practice shale not disclose any confidential client information without the specific content of the client

ACCT 563 (1 decks)

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