Introduction and Preface Flashcards
Pursuant to the AICPA rules of conduct, the auditor’s responsibility to the profession is defined by
The AICPA Code of Professional Conduct.
Federal laws governing licensed professionals who are involved in interstate commerce.
Statements on Auditing Standards.
The bylaws of the AICPA.
The AICPA Code of Professional Conduct.
This answer is correct because the AICPA Code of Professional Conduct outlines the profession’s rules of conduct (also its principles and interpretations) and auditor responsibility to the profession.
Which of the following is not an AICPA pronouncement enforceable under the AICPA Code of Professional Conduct?
Statements on Auditing Standards.
Statements on Standards for Accounting and Review Services.
Statements on Responsibilities in Personal Consulting Advisory Practice.
Statements on Standards for Valuation Servic
Statements on Responsibilities in Personal Consulting Advisory Practice.
This answer is correct since no standards titled Statements on Responsibilities in Personal Consulting Advisory Practice exist. The closest that does exist are Statements on Standards for Consulting Services (which are enforceable).
Which of the following can cause a CPA to receive an automatic suspension from the AICPA?
I. The CPA’s CPA certificate is revoked by the relevant state board of accountancy.
II. The CPA is convicted of a crime punishable by more than one year in jail.
III. The CPA intentionally did not file his personal tax return as required by federal law.
I only.
II only.
I and II only.
I, II, and III.
I, II, and III.
This answer is correct as all three of these can result in automatic suspension of a CPA from the AICPA.
Which of the following is true regarding the Principles of Professional Conduct?
To live up to the Code of Professional Conduct, members may have to work hard, but they do not have to sacrifice their own best interests.
Members must not only be competent in the provision of professional services; they must also cooperate with other members to improve the art of accounting.
Due care in the audit area is satisfied if a member knows generally accepted accounting principles and generally accepted accounting standards inside and out.
Because the Code of Professional Conduct does not expressly prohibit a member from moonlighting as a circus trapese performer, a member could perform at a local bar as “Sam the Flying CPA.”
Members must not only be competent in the provision of professional services; they must also cooperate with other members to improve the art of accounting.
The code requires members to cooperate with each other to improve the art of accounting (and to maintain the public’s confidence in the profession, and to carry out the profession’s special responsibilities).
Which of the following statements best explains why the CPA profession has found it essential to promulgate ethical standards and to establish means for ensuring their observance?
A distinguishing mark of a profession is its acceptance of responsibility to the public.
A requirement for a profession is to establish ethical standards that stress primary responsibility to clients and colleagues.
Ethical standards that emphasize excellence in performance over material rewards establish a reputation for competence and character.
Vigorous enforcement of an established code of ethics is the best way to prevent unscrupulous acts.
A distinguishing mark of a profession is its acceptance of responsibility to the public.
A distinguishing mark of a profession is its acceptance of responsibility to the public.
