NINJA AUD - Professional Responbilities Flashcards
Which of the following best describes what is meant by the term “generally accepted auditing standards”?
Measures of the audit quality and the objectives to be achieved in an audit
A pervasive characteristic of a CPA’s role in a consulting services engagement is that of being:
an objective advisor.
Bookkeeping service allowed by the AICPA but prohibited by the SEC:
preparing F/S.
Title II of the Sarbanes-Oxley Act of 2002 specifically prohibits:
bookkeeping, financial information systems design and implementation, appraisal or valuation services, actuarial services, internal audit outsourcing, management functions, broker or dealer services, and legal services. Tax services are permissible, but must be preapproved by the audit committee.
May be provided by a registered public accounting firm to the client contemporaneously with the audit when preapproval is granted by audit committee action:
Tax services
The controller of a small utility company has interviewed audit firms proposing to perform the annual audit of their employee benefit plan. According to the guidelines of the Department of Labor (DOL), the selected auditor must be:
independent for purposes of examining financial information required to be filed annually with the DOL.
The IESBA Code of Ethics for Professional Accountants establishes ethical requirements for professional accountants through:
Conceptual framework.
Conducting and supervising work at all organizational levels includes:
reviewing the work that has been completed by the audit team (i.e. working papers and reports).
The authoritative body designated to promulgate standards concerning an accountant’s association with unaudited financial statements of an entity that is NOT required to file financial statements with an agency regulating the issuance of the entity’s securities is the:
Accounting and Review Services Committee.
