Professional Responsbilities Flashcards
Is the AICPA Code of Professional Conduct applicable to all members of the AICPA?
Yes
What is a distinguishing mark of a profession that accepta a high degree of responsibility toward the public?
Professional Code of Conduct
What article speaks about how members should exercise sensitive professional and moral judgments in all their activities?
Article 1 - Responsibilities
What Article discusses objectivity and independence?
Article IV
What does objectivity apply to?
All services rendered
What does independence apply to?
Attestation services
What Article discusses due care?
Article V
What Rule discusses Independence?
Rule 101
What services does not require independence?
Compilations and Nonattestation services
When an auditor is not independent for a compilation, does the auditor have to disclose it?
Yes
Is independence impaired if a covered member has a direct financial interest or a material indirect financial interest in an attestation client?
Yes
Independence is not impaired in a financial institution client by?
Fully collateralized car loans with a financial institution client, cash advance or credit card balances not exceeding $10,000, a bank account that is fully insured by the government, and a passbook loan
Is independence impaired if a member makes management decisions for an attest client?
Yes
Can a member of the engagement team be a member of an honorary trustee for a nonprofit charitable without impairing independence?
Yes
Does fees overdue by 1 year impair independence?
Yes
Does actual or threatened litigation impair independence?
Yes
What services must a member maintain integrity and objectivity?
Any professional service
What Rule discusses General Standards?
Rule 201
A member must comply with the following standards in all engagements?
Professional Competence, Due professional care, and sufficient relevant data
What Rule discusses Compliance with Standards?
Rule 202
What Rules discuss Accounting Principles?
Rule 203
What Rules discuss Confidential Client Information?
Rule 301
What are the exceptions for when a member can disclose confidential information?
Subpoena or summon, quality review(peer review), and inquiry either made by the ethics division or the trial board
What Rule discusses Contingent Fees?
Rule 302
A contingent fee is established for performing services where?
No fee is charged unless a specific finding or result is obtained or the fee amount is dependent upon the finding or result obtained
What rule discusses Discreditable Acts?
Rule 501
The following acts are discreditable to the profession?
Failure to return records to a client after the client makes demand
What Rule discusses Advertising and Other Forms of Solicitation?
Rule 502
What Rule discusses Commissions and Referral Fees?
Rule 503
What Rule discusses a Form of Organization and Name?
Rule 505
How long can a remaining member continue to practice under the partnership name if the others died?
2 years
The PCAOB is subject to oversight by the SEC and has the duty to?
Register public accounting firms that prepare audit reports for issuers, establish rules relating to the preparation of audit reports for issuers, and conduct inspections, investigations, and disciplinary proceedings concerning registered public account firms
How long does the PCAOB require registered firms to maintain documentation?
7 years
How often should lead audit and coordinating partner and the reviewing partner rotate off the audit?
5 years
Is independence impaired by contingent fees?
Yes
How often should other audit partners rotate off the audit engagement?
7 years
How long is the other audit partners “time out” period?
2 years
Pre-approval by the audit committee is not required for what services?
Non-audit services that do not exceed 5 percent of total revenues
Can registered public accounting firms provide tax services related to certain confidential or aggressive tax transactions?
No
Can registered public accounting firms provide tax services to corporate officers of audit clients?
No
What are the 3 broad categoires of misconduct of the state board of accountancy?
Misconduct while performing accounting services, misconduct outside the scope of accounting services, and criminal conviction
Is the accountant entitled to a due process of law when facing disciplinary action by the state board of public accountancy?
Yes
