Auditing and Assurance services CPA practice Questions And Answers Chapters 1-3 2024/2025
Auditing and Assurance services CPA practice Questions And Answers Chapters 1-3 2024/2025 1) Spinner, CPA, had audited Lasco Corp.'s financial statements for the past several years. Prior to the current year's engagement, a disagreement arose that caused Lasco to change auditing firms. Lasco has demanded that Spinner provide Lasco with Spinner's working papers so that Lasco may show them to prospective auditors to help them prepare their bids for Lasco's audit engagement. Spinner refused and Lasco commenced litigation. Under the ethical standards of the profession, will Spinner be successful in refusing to turn over the working papers? A. Yes, because Spinner is the owner of the working papers B. Yes, because Lasco is required to direct prospective auditors to contact Spinner to make arrangements to view the working papers in Spinner's office C. No, because Lasco has a legitimate business reason for demanding that Spinner surrender the working papers D. No, because it was Lasco's financial statements tha - ANS-A. Yes, because Spinner is the owner of the working papers 2) Which of the following acts by a CPA is a violation of professional standards regarding the confidentiality of client information? A. Releasing financial information to a local bank with the approval of the client's mail clerk B. Allowing a review of professional practice without client authorization C. Responding to an enforceable subpoena D. Faxing a tax return to a loan officer at the request of the client - ANS-
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