Other Ethics Codes Flashcards
An auditor may provide an issuer client any of the following non-audit services without impairing independence and without obtaining the preapproval of the audit committee, except
A. Non-audit services with revenues in aggregate of less than 5% of the total revenues paid by the issuer to the auditor during the fiscal year in which the non-audit services are provided.
B. Non-audit services that were promptly brought to the attention of, and approved by, the audit committee prior to the completion of the audit.
C. Non-audit services to perform financial information systems design and implementation.
D. Services that the issuer did not recognize as non-audit services at the time of the engagement.
C. Non-audit services to perform financial information systems design and implementation.
SOX lists several nonaudit services that audit firms may not provide for their public company audit clients, and this is near the top of the list.
Which of the following statements is correct regarding disclosure of client working papers prepared by a CPA?
A. Working papers may NOT be transferred to another accountant without the client’s permission.
B. Working papers may NOT be turned over to a CPA quality review team without the client’s permission.
C. Working papers may NOT be disclosed under a federal court subpoena without the client’s permission.
D. Working papers may NOT be disclosed to any third parties without the client’s permission.
A. Working papers may NOT be transferred to another accountant without the client’s permission.
Because of the confidentiality duty that a CPA owes a client, working papers may not be transferred to another accountant (typically a buyer of the accountant’s business) without the client’s permission.
Which of the following is true regarding the relationship of the SEC and the PCAOB?
A. The SEC selects the PCAOB’s members.
B. The SEC must approve all PCAOB rules.
C. A violation of any PCAOB rule constitutes a violation of the 1934 Securities Exchange Act.
D. All of the above.
D. All of the above.
Because choices A, B, and C are all accurate, this is the best choice.
