D215 Auditing, Pre-Assesment PA
Which type of work performed by a CPA is an attestation service?
Financial statement review
3 multiple choice options
Which entity may obtain audited financial statements to ensure a company is complying with
industry regulations?
Governments
3 multiple choice options
Which group performs an audit and review of financial statements to ensure financial statement
users' needs are met?
Independent third-party auditors
3 multiple choice options
Which type of report should be issued if an auditor has determined that a company has
maintained effective internal controls over financial reporting for the period under audit?
Unqualified
3 multiple choice options
A new CPA is aware of how accounting affects stakeholders.
Which characteristic of professionalism is motivating this awareness?
Concern for the public interest
3 multiple choice options
Which component of the AICPA Code of Professional Conduct provides the tenets of ethical
conduct that govern the professional responsibility of its members?
Principles
3 multiple choice options
A CPA firm provides tax services for a large automotive client. Over the years, the client has
continually pushed 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?
Undue influence
3 multiple choice options
A CPA has prepared a couple's joint tax returns for 10 years, but the couple is now experiencing
a complicated 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?
Integrity and Objectivity
3 multiple choice options
A large client asks a CPA firm for consulting help with their quarterly sales and use tax reporting.
The CPA firm 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?
The CPA firm must send the CPAs to a continuing professional education course on sales and
use tax reporting.
A junior accountant is providing tax and audit services to a large company that is pressuring the
accountant to 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?
Due Professional Care
3 multiple choice options
A CPA firm has been retained to audit a client's financial statements. The client's bank has
requested audited financial statements in order to approve or deny a loan to 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 type of work performed by a CPA is an attestation service?
Financial statement review
3 multiple choice options
Which entity may obtain audited financial statements to ensure a company is complying with
industry regulations?
Governments
3 multiple choice options
Which group performs an audit and review of financial statements to ensure financial statement
users' needs are met?
Independent third-party auditors
3 multiple choice options
Which type of report should be issued if an auditor has determined that a company has
maintained effective internal controls over financial reporting for the period under audit?
Unqualified
3 multiple choice options
A new CPA is aware of how accounting affects stakeholders.
Which characteristic of professionalism is motivating this awareness?
Concern for the public interest
3 multiple choice options
Which component of the AICPA Code of Professional Conduct provides the tenets of ethical
conduct that govern the professional responsibility of its members?
Principles
3 multiple choice options
A CPA firm provides tax services for a large automotive client. Over the years, the client has
continually pushed 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?
Undue influence
3 multiple choice options
A CPA has prepared a couple's joint tax returns for 10 years, but the couple is now experiencing
a complicated 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?
Integrity and Objectivity
3 multiple choice options
A large client asks a CPA firm for consulting help with their quarterly sales and use tax reporting.
The CPA firm 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?
The CPA firm must send the CPAs to a continuing professional education course on sales and
use tax reporting.
A junior accountant is providing tax and audit services to a large company that is pressuring the
accountant to 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?
Due Professional Care
3 multiple choice options
A CPA firm has been retained to audit a client's financial statements. The client's bank has
requested audited financial statements in order to approve or deny a loan to 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.
