1
CPA
CPA Ethics Exam Questions with
Correct Verified Answers Latest
Update (2024/2025) Guaranteed Pass
Jones & Barnes, a public accounting firm, has offices
M
in Minneapolis, Chicago and 10 other cities. The firm 's
executive office and the managing partner are in Chicago.
ED
Each office does all the work and issues the audit reports
for the clients of that office. Black & Co. is an audit client
of the Minneapolis office.
ST
State whether in the following situations the individual
would be a "covered member" with respect to the 2001
calendar year audit of Black & Co.
U
D
Jacobs, an audit manager in the Minneapolis office,
who does no work on the Black & Co. engagement.
Y
(a) is a covered member.
(b) is not a covered member. - ANS ✓(b) is correct. (Covered member
(a)), includes all
people that work on the attest engagement team.
Thus professional staff that work on the audit are
covered members. Since Jacobs does no work on
the Black & Co. engagement, he is not a covered
CPA Ethics Exam
, 2
CPA
member. The fact that he is a manager has no bearing on the answer.
Jones & Barnes, a public accounting firm, has offices
in Minneapolis, Chicago and 10 other cities. The firm 's
executive office and the managing partner are in Chicago.
Each office does all the work and issues the audit reports
for the clients of that office. Black & Co. is an audit client
of the Minneapolis office.
M
State whether in the following situations the individual
would be a "covered member" with respect to the 2001
ED
calendar year audit of Black & Co.
Larson, a consulting services partner, in the Minneapolis
ST
office who has not done any work for Black & Co.
(a) is a covered member
(b) is not a covered member - ANS ✓(a) is correct. (Covered member (d))
U
includes all
D
partners in the office where the lead attest engagement partner
works. Since Minneapolis does all the work for this client, the lead
attest engagement partner has to be in Minneapolis. Larson is a
Y
partner in the Minneapolis office, and therefore he is a covered
member even though he never works on the Black & Co. engagement
Jones & Barnes, a public accounting firm, has offices
in Minneapolis, Chicago and 10 other cities. The firm 's
executive office and the managing partner are in Chicago.
Each office does all the work and issues the audit reports
CPA Ethics Exam
, 3
CPA
for the clients of that office. Black & Co. is an audit client
of the Minneapolis office.
State whether in the following situations the individual
would be a "covered member" with respect to the 2001
calendar year audit of Black & Co.
Olson, a professional staff person below the rank of
manager, who worked for two weeks in 2001 on a
M
non attest consulting services engagement for Black
&Co.
ED
(a) is a covered member
(b) is not a covered member - ANS ✓(b) is correct. (Covered member (c))
holds that
ST
partners or managers who provide ten hours or more of non-attest
services to a client within the year are covered members. Olson
however is not a partner or manager, and thus is not a covered
member even though he did non-attest services for Black & Co.
U
D
Jones & Barnes, a public accounting firm, has offices
in Minneapolis, Chicago and 10 other cities. The firm 's
Y
executive office and the managing partner are in Chicago.
Each office does all the work and issues the audit reports
for the clients of that office. Black & Co. is an audit client
of the Minneapolis office.
State whether in the following situations the individual
would be a "covered member" with respect to the 2001
calendar year audit of Black & Co.
CPA Ethics Exam
, 4
CPA
Corey, secretary to the Minneapolis office managing
partner,
(a) is a covered member
(b) is not a covered member - ANS ✓(b) is correct (Attest engagement
team) does not
include those performing routine clerical functions. Thus (Covered
member (b)) does not apply to nonprofessional people unless they
are in a position where they can influence the attest engagement.
M
Corey, as a secretary, is thus not a covered member.
ED
Porter is a partner in White & Co., CPAs. State whether in
the following situations the person would be classified as
a member of Porter's immediate family.
ST
Porter's dependent daughter who is away at college
(a) is classified as part of Porter's immediate
U
family
D
(b) is not classified as part of Porter's immediate
family - ANS ✓(a) is correct. (Immediate family) says it includes
Y
dependents. Even though she is away at college she is still a
dependent and thus immediate family.
Porter is a partner in White & Co., CPAs. State whether in
the following situations the person would be classified as
a member of Porter's immediate family.
CPA Ethics Exam
CPA
CPA Ethics Exam Questions with
Correct Verified Answers Latest
Update (2024/2025) Guaranteed Pass
Jones & Barnes, a public accounting firm, has offices
M
in Minneapolis, Chicago and 10 other cities. The firm 's
executive office and the managing partner are in Chicago.
ED
Each office does all the work and issues the audit reports
for the clients of that office. Black & Co. is an audit client
of the Minneapolis office.
ST
State whether in the following situations the individual
would be a "covered member" with respect to the 2001
calendar year audit of Black & Co.
U
D
Jacobs, an audit manager in the Minneapolis office,
who does no work on the Black & Co. engagement.
Y
(a) is a covered member.
(b) is not a covered member. - ANS ✓(b) is correct. (Covered member
(a)), includes all
people that work on the attest engagement team.
Thus professional staff that work on the audit are
covered members. Since Jacobs does no work on
the Black & Co. engagement, he is not a covered
CPA Ethics Exam
, 2
CPA
member. The fact that he is a manager has no bearing on the answer.
Jones & Barnes, a public accounting firm, has offices
in Minneapolis, Chicago and 10 other cities. The firm 's
executive office and the managing partner are in Chicago.
Each office does all the work and issues the audit reports
for the clients of that office. Black & Co. is an audit client
of the Minneapolis office.
M
State whether in the following situations the individual
would be a "covered member" with respect to the 2001
ED
calendar year audit of Black & Co.
Larson, a consulting services partner, in the Minneapolis
ST
office who has not done any work for Black & Co.
(a) is a covered member
(b) is not a covered member - ANS ✓(a) is correct. (Covered member (d))
U
includes all
D
partners in the office where the lead attest engagement partner
works. Since Minneapolis does all the work for this client, the lead
attest engagement partner has to be in Minneapolis. Larson is a
Y
partner in the Minneapolis office, and therefore he is a covered
member even though he never works on the Black & Co. engagement
Jones & Barnes, a public accounting firm, has offices
in Minneapolis, Chicago and 10 other cities. The firm 's
executive office and the managing partner are in Chicago.
Each office does all the work and issues the audit reports
CPA Ethics Exam
, 3
CPA
for the clients of that office. Black & Co. is an audit client
of the Minneapolis office.
State whether in the following situations the individual
would be a "covered member" with respect to the 2001
calendar year audit of Black & Co.
Olson, a professional staff person below the rank of
manager, who worked for two weeks in 2001 on a
M
non attest consulting services engagement for Black
&Co.
ED
(a) is a covered member
(b) is not a covered member - ANS ✓(b) is correct. (Covered member (c))
holds that
ST
partners or managers who provide ten hours or more of non-attest
services to a client within the year are covered members. Olson
however is not a partner or manager, and thus is not a covered
member even though he did non-attest services for Black & Co.
U
D
Jones & Barnes, a public accounting firm, has offices
in Minneapolis, Chicago and 10 other cities. The firm 's
Y
executive office and the managing partner are in Chicago.
Each office does all the work and issues the audit reports
for the clients of that office. Black & Co. is an audit client
of the Minneapolis office.
State whether in the following situations the individual
would be a "covered member" with respect to the 2001
calendar year audit of Black & Co.
CPA Ethics Exam
, 4
CPA
Corey, secretary to the Minneapolis office managing
partner,
(a) is a covered member
(b) is not a covered member - ANS ✓(b) is correct (Attest engagement
team) does not
include those performing routine clerical functions. Thus (Covered
member (b)) does not apply to nonprofessional people unless they
are in a position where they can influence the attest engagement.
M
Corey, as a secretary, is thus not a covered member.
ED
Porter is a partner in White & Co., CPAs. State whether in
the following situations the person would be classified as
a member of Porter's immediate family.
ST
Porter's dependent daughter who is away at college
(a) is classified as part of Porter's immediate
U
family
D
(b) is not classified as part of Porter's immediate
family - ANS ✓(a) is correct. (Immediate family) says it includes
Y
dependents. Even though she is away at college she is still a
dependent and thus immediate family.
Porter is a partner in White & Co., CPAs. State whether in
the following situations the person would be classified as
a member of Porter's immediate family.
CPA Ethics Exam
