ACC 3005 Mod 2 Quiz on AICPA Code
of Professional conduct
"Solicitation by means of the use of coercion, over-reaching, or harassing behavior is illegal."
This assertion may be found in:
a. 1.600.001 Advertising and Other Forms of Solicitation Rule
b. 1.Four hundred.001 Acts Discreditable Rule
c. 1.500.008 Unpaid Fees - ANS-a. 1.600.001 Advertising and Other Forms of Solicitation
Rule
A bank retains a CPA company to perform an audit. During the duration of the professional
engagement, a manager within the CPA firm obtains a loan from the bank. He works in the
equal workplace because the lead associate at the audit however does not offer any
offerings to the financial institution. Is the company's independence impaired?
A. No
b. Yes - ANS-a. No
A CPA company is considering hiring the controller of one of its audit clients as a
component-time unbiased contractor throughout tax season. She might assist put together
tax returns for other customers of the CPA company, all of which are nonattest customers.
The firm has places of work and she or he would be operating out of the only that doesn't
provide any offerings to her number one corporation. If she is hired, could the CPA
company's independence be impaired with appreciate to that consumer?
A. Yes
b. No - ANS-a. Yes
A CPA firm performs an audit of a big manufacturing employer. One of the firm's managers,
who plans to provide a sizable quantity of tax offerings to the employer, has a spouse who
inherited a small quantity of inventory in it. The manager does now not work within the same
workplace as the lead audit companion. Is the company's independence impaired?
A. No
b. Yes - ANS-b. Yes
A manager in a multioffice CPA company serves on the board of directors of a capacity
assessment patron. The manager might now not be assigned to provide services to the
purchaser nor placed inside the office that would perform the engagement. Is the company
unbiased to carry out the evaluate?
A. No
of Professional conduct
"Solicitation by means of the use of coercion, over-reaching, or harassing behavior is illegal."
This assertion may be found in:
a. 1.600.001 Advertising and Other Forms of Solicitation Rule
b. 1.Four hundred.001 Acts Discreditable Rule
c. 1.500.008 Unpaid Fees - ANS-a. 1.600.001 Advertising and Other Forms of Solicitation
Rule
A bank retains a CPA company to perform an audit. During the duration of the professional
engagement, a manager within the CPA firm obtains a loan from the bank. He works in the
equal workplace because the lead associate at the audit however does not offer any
offerings to the financial institution. Is the company's independence impaired?
A. No
b. Yes - ANS-a. No
A CPA company is considering hiring the controller of one of its audit clients as a
component-time unbiased contractor throughout tax season. She might assist put together
tax returns for other customers of the CPA company, all of which are nonattest customers.
The firm has places of work and she or he would be operating out of the only that doesn't
provide any offerings to her number one corporation. If she is hired, could the CPA
company's independence be impaired with appreciate to that consumer?
A. Yes
b. No - ANS-a. Yes
A CPA firm performs an audit of a big manufacturing employer. One of the firm's managers,
who plans to provide a sizable quantity of tax offerings to the employer, has a spouse who
inherited a small quantity of inventory in it. The manager does now not work within the same
workplace as the lead audit companion. Is the company's independence impaired?
A. No
b. Yes - ANS-b. Yes
A manager in a multioffice CPA company serves on the board of directors of a capacity
assessment patron. The manager might now not be assigned to provide services to the
purchaser nor placed inside the office that would perform the engagement. Is the company
unbiased to carry out the evaluate?
A. No
