Professional Responsibilities and Ethics

Question 1

Preface of the AICPA code of professional conduct

Answer 1

Applies to all members; divided into 6 topics

Question 2

Part 1 of the AICPA code of professional conduct

Answer 2

members in Public Practice

Question 3

Part 2 of the AICPA code of professional conduct

Answer 3

members in industry, but if you’re both public and in industry, go with public since it is more restrictive

Question 4

Part 3 of the AICPA code of professional conduct

Answer 4

Other members, including those retired or unemployed

Question 5

Preface: topic 100

Answer 5

provides overview; an indication that CPAs are expected to follow interpretations; highest and most restrictive role should apply

Question 6

Preface: topic 200

Answer 6

Describes structure of the code and indicates its applicability to the services performed
--
consider-means you'll think about it
evaluate-measure a matter's significance
determine-establish a conclusion

Question 7

Preface: topic 300

Answer 7

describes principles
--
responsibility of self-discipline
responsibilities to the public, clients, colleagues
commitment to act with honor

Question 8

Preface: topic 400

Answer 8

definitions

Question 9

Preface: topic 500

Answer 9

SPecifies that only the Code is authoritative

Question 10

Preface: topic 600

Answer 10

Indicates status of new, revised, or pending interpretations and other guidance

Question 11

Part 1: topic 1.000 - introduction

Answer 11

Intro to Conceptual Framework Approach

1. Identify threats that may interfere with the CPAs ability to remain compliant with the code
2. Evaluate the significance of identified threats (individually and in the aggregate) to determine if they are at acceptable level
3. Identify and apply safeguards to those threats that are not at an acceptable level

Question 12

Threats (7 categories)

Answer 12

Self-review
Advocacy
Adverse interest
Familiarity
Undue Influence
Self-interest
Management participation

Question 13

Covered member

Answer 13

Member of an attest engagement team

A partner or manager providing more than 10 hours of nonattest services to the attest client within a fiscal year

A partner in the same office in which the lead engagement partner for the attest engagement practices

The firm and its employee benefit plan

An entity under the control of any one of the other covered members described and two or more of those individuals or entities acting together

Question 14

Covered member must maintain independence for ERAS

Answer 14

Examinations (audits)
Reviews (conclusions)
Agreed-upon procedure engagements leading to findings
Special reports

Question 15

What if there is no rule about something in the AICPA Code of Professional Conduct?

Answer 15

Follow the conceptual framework approach

Question 16

3 General requirements for performing nonattest services

Answer 16

1. Client must accept its responsibilities
2. The accountant’s responsibilities must be limited
3. Written understanding must be established with the client

Question 17

SSPFPS’s 5 issues in relation to Personal Financial Planning (PFP) services

Answer 17

Planning the engagement
Obtaining and analyzing information
Developing and communicating recommendations
Implementation engagements
Monitoring and updating engagements

Question 18

PCAOB

Answer 18

public companies must be registered with them prior to performing audits