M10-Ethical Requirements of the GAO and DOL Flashcards
Professional behavior includes an auditor’s honest effort in the performance of professional services in accordance with the relevant technical and professional standards. (true or false)
true
Objectivity includes independent of mind and appearance when providing audits, maintaining an attitude of impartiality, having intellectual honesty, and being free of conflicts of interest. (true or false)
true
Integrity includes auditors conducting their work with an attitude that is objective, fact-based, nonpartisan, and non-ideological with regard to the audited entities and users of the auditor’s reports. (true or false)
true
The public interest is defined as the collective well-being of the community of people and entities served by the auditor. Auditor services should be designed to meet those needs. (true or false)
true
The self-interest threat is the threat that a financial or other interest will inappropriately influence an auditor’s judgment or behavior. (true or false)
true
Bias threat is the threat that an auditor will, as a result of political, ideological, social, or other convictions, take a position that is not objective. (true or false)
true
The self-review threat is the threat that an auditor or audit organization that has provided non audit services will not appropriately evaluate the results of previous judgments made or services performed as part of the non audit services when forming a judgment significant to an audit. (true or false)
true
Management participation threat is the threat that results from an auditor’s taking on the role of management or otherwise performing management functions on behalf of the entity undergoing an audit. (true or false)
true
If an auditor were to assume management responsibilities for an audited entity, the management participation threat created would be so significant that no safeguards could reduce the threat to an acceptable level. (true or false)
true
A critical component of the determination of whether providing a non audit service would create a threat to independence is consideration of management’s ability to effectively oversee the non audit service to be performed. (true or false)
true
