AUDITING CASE AN INTERACTIVE
LEARNING APPROACH 7TH EDITION
BEASLEY SOLUTIONS MANUAL
COMPREHENSIVE SCRIPT 2026 COMPLETE
QUESTIONS AND SOLUTIONS GRADED A+
⩥ For each situation (1-5), identify the most applicable AICPA rule of
conduct and whether there is a violation or no violation of the rule (A-
F). One or more letters may not be used.
A.Independence Rule; no violation
B.Independence Rule; violation
C.Confidential Client Information Rule; no violation
D.Confidential Client Information Rule; violation
E.Fees and Other Types of Remuneration Rule; no violation
F.Fees and Other Types of Remuneration Rule; violation
1.Jackson, CPA, and one of his audit clients are considering investing in
a business together. Jackson would own 25% of the business and the
client would own 50%. Jackson's investment in the business is material
to his net worth.
, 2.Feller, CPA, is the corporate controller for Robert Corporation. Feller
believes his employer may have committed an illegal act. After
discussing the matter with his attorney, Feller decides to disclose the
matter to the appropriate. Answer: 1. B
2. C
3. B
4. A
5. F
6. C
7. A
8. B
9. F
10. E
⩥ Julie and Lisa are sisters. Julie is a CPA auditing the company where
Lisa works. Julie's independence is impaired if Answer: Lisa is the
controller.
⩥ According to the Accounting Principles Rule requires the auditor to
adhere to official pronouncements except when Answer: adherence to a
pronouncement would be misleading.
LEARNING APPROACH 7TH EDITION
BEASLEY SOLUTIONS MANUAL
COMPREHENSIVE SCRIPT 2026 COMPLETE
QUESTIONS AND SOLUTIONS GRADED A+
⩥ For each situation (1-5), identify the most applicable AICPA rule of
conduct and whether there is a violation or no violation of the rule (A-
F). One or more letters may not be used.
A.Independence Rule; no violation
B.Independence Rule; violation
C.Confidential Client Information Rule; no violation
D.Confidential Client Information Rule; violation
E.Fees and Other Types of Remuneration Rule; no violation
F.Fees and Other Types of Remuneration Rule; violation
1.Jackson, CPA, and one of his audit clients are considering investing in
a business together. Jackson would own 25% of the business and the
client would own 50%. Jackson's investment in the business is material
to his net worth.
, 2.Feller, CPA, is the corporate controller for Robert Corporation. Feller
believes his employer may have committed an illegal act. After
discussing the matter with his attorney, Feller decides to disclose the
matter to the appropriate. Answer: 1. B
2. C
3. B
4. A
5. F
6. C
7. A
8. B
9. F
10. E
⩥ Julie and Lisa are sisters. Julie is a CPA auditing the company where
Lisa works. Julie's independence is impaired if Answer: Lisa is the
controller.
⩥ According to the Accounting Principles Rule requires the auditor to
adhere to official pronouncements except when Answer: adherence to a
pronouncement would be misleading.