D215 Auditing, Pre-Assessment PA Questions and Answers
Which type of work performed by a CPA is an attestation Financial statement review
service? 3 multiple choice options
Which entity may obtain audited financial statements to Governments
ensure a company is complying with industry 3 multiple choice options
regulations?
Which group performs an audit and review of financial Independent third-party auditors
statements to ensure financial statement users' needs are 3 multiple choice options
met?
Which type of report should be issued if an auditor has Unqualified
determined that a company has maintained effective 3 multiple choice options
internal controls over financial reporting for the period
under audit?
A new CPA is aware of how accounting affects Concern for the public interest
stakeholders. 3 multiple choice options
Which characteristic of professionalism is motivating this
awareness?
Which component of the AICPA Code of Professional Principles
Conduct provides the tenets of ethical conduct that 3 multiple choice options
govern the professional responsibility of its members?
, A CPA firm provides tax services for a large automotive Undue influence
client. Over the years, the client has continually pushed 3 multiple choice options
for aggressive tax strategies that the CPA does not always
agree with.
While performing the current year tax return, the client
threatens to discontinue the relationship with the CPA
firm if they continue to disagree with the strategies
presented.
Which type of threat to ethical decision-making is
demonstrated by this practice?
A CPA has prepared a couple's joint tax returns for 10 Integrity and Objectivity
years, but the couple is now experiencing a complicated
3 multiple choice options
divorce where both parties wish to claim the same child
as a dependent. The CPA agrees to work with both clients
on their tax returns.
Which standard of the AICPA Code of Professional
Conduct is being violated by this CPA's action?
A large client asks a CPA firm for consulting help with The CPA firm must send the CPAs to a continuing professional education course
their quarterly sales and use tax reporting. The CPA firm on sales and use tax reporting.
specializes in audit and tax preparation and has not dealt
with this type of work in the past but would like to add it.
The firm decides to accept the job.
Which step is required to maintain compliance with the
general standards of the AICPA Code of Professional
Conduct?
A junior accountant is providing tax and audit services to Due Professional Care
a large company that is pressuring the accountant to 3 multiple choice options
reduce the amount of taxes the company owes. The junior
accountant decides to use last year's tax laws instead of
the current year's laws since the older laws will save the
company money.
Which general standard of the AICPA Code of
Professional Conduct is the junior accountant violating?
A CPA firm has been retained to audit a client's financial This fee structure is not permitted under ethical standards applicable to the
statements. The client's bank has requested audited auditing profession.
financial statements in order to approve or deny a loan to 1 multiple choice option
the client. The client has suggested that the CPA firm will
earn a $20,000 bonus if the bank grants the loan to the
client.
Which statement characterizes the permissibility of this
fee structure?
Which type of work performed by a CPA is an attestation Financial statement review
service? 3 multiple choice options
Which entity may obtain audited financial statements to Governments
ensure a company is complying with industry 3 multiple choice options
regulations?
Which group performs an audit and review of financial Independent third-party auditors
statements to ensure financial statement users' needs are 3 multiple choice options
met?
Which type of report should be issued if an auditor has Unqualified
determined that a company has maintained effective 3 multiple choice options
internal controls over financial reporting for the period
under audit?
A new CPA is aware of how accounting affects Concern for the public interest
stakeholders. 3 multiple choice options
Which characteristic of professionalism is motivating this
awareness?
Which component of the AICPA Code of Professional Principles
Conduct provides the tenets of ethical conduct that 3 multiple choice options
govern the professional responsibility of its members?
, A CPA firm provides tax services for a large automotive Undue influence
client. Over the years, the client has continually pushed 3 multiple choice options
for aggressive tax strategies that the CPA does not always
agree with.
While performing the current year tax return, the client
threatens to discontinue the relationship with the CPA
firm if they continue to disagree with the strategies
presented.
Which type of threat to ethical decision-making is
demonstrated by this practice?
A CPA has prepared a couple's joint tax returns for 10 Integrity and Objectivity
years, but the couple is now experiencing a complicated
3 multiple choice options
divorce where both parties wish to claim the same child
as a dependent. The CPA agrees to work with both clients
on their tax returns.
Which standard of the AICPA Code of Professional
Conduct is being violated by this CPA's action?
A large client asks a CPA firm for consulting help with The CPA firm must send the CPAs to a continuing professional education course
their quarterly sales and use tax reporting. The CPA firm on sales and use tax reporting.
specializes in audit and tax preparation and has not dealt
with this type of work in the past but would like to add it.
The firm decides to accept the job.
Which step is required to maintain compliance with the
general standards of the AICPA Code of Professional
Conduct?
A junior accountant is providing tax and audit services to Due Professional Care
a large company that is pressuring the accountant to 3 multiple choice options
reduce the amount of taxes the company owes. The junior
accountant decides to use last year's tax laws instead of
the current year's laws since the older laws will save the
company money.
Which general standard of the AICPA Code of
Professional Conduct is the junior accountant violating?
A CPA firm has been retained to audit a client's financial This fee structure is not permitted under ethical standards applicable to the
statements. The client's bank has requested audited auditing profession.
financial statements in order to approve or deny a loan to 1 multiple choice option
the client. The client has suggested that the CPA firm will
earn a $20,000 bonus if the bank grants the loan to the
client.
Which statement characterizes the permissibility of this
fee structure?
