BA 323 – NIELANDER – EXAM 1 2026 FINAL
PAPER COMPLETE QUESTIONS AND ANSWERS
FULL SOLUTION
◉ Who oversees the formulation of international accounting
principles?
Answer: IFRS Foundation
◉ Who issues international accounting principles?
Answer: IASB
◉ What does the ASB issue?
Answer: Statements on Auditing Standards (SAS)
◉ Which of the Principles of Professional Conduct, Rules of Conduct,
and Interpretations of Rules of Conduct are not specifically
enforceable?
Answer: Principles of Professional Conduct
◉ Which of the Principles of Professional Conduct, Rules of Conduct,
and Interpretations of Rules of Conduct are specifically enforceable?
Answer: Rules of Conduct
,◉ Which of the Principles of Professional Conduct, Rules of Conduct,
and Interpretations of Rules of Conduct are not specifically
enforceable, but departures must be justified?
Answer: Interpretations of Rules of Conduct
◉ Which of the Principles of Professional Conduct, Rules of Conduct,
and Interpretations of Rules of Conduct is the most general?
Answer: Principles of Professional Conduct
◉ Which of the Principles of Professional Conduct, Rules of Conduct,
and Interpretations of Rules of Conduct is between general and
specific?
Answer: Rules of Conduct
◉ Which of the Principles of Professional Conduct, Rules of Conduct,
and Interpretations of Rules of Conduct is the most specific?
Answer: Interpretations of Rules of Conduct
◉ Definition of Principles of Professional Conduct
Answer: Ideal attitudes and behaviors
◉ Definition of Rules of Conduct
,Answer: Minimally acceptable standards
◉ Definition of Interpretations of Rules of Conduct
Answer: Detailed interpretation and answers to questions regarding
rules of conduct
◉ Six principles of professional conduct
Answer: Responsibilities
The Public Interest
Integrity
Objectivity and Independence
Due Care
Scope and Nature of Services
◉ SEC's rules are predicated on four basic principles of auditor
objectivity and independence
Answer: 1. An auditor should not audit his or her own work.
2. An auditor should not function in the role of management.
3. An auditor should not serve in an advocacy role for the entity.
4. An auditor should not have a mutual or conflicting interest with
an audit client.
, ◉ Prohibited non-audit services for public entities (9)
Answer: Bookkeeping
Actuarial Services
Broker or Dealer
Financial Information Systems Design and Implementation
Internal Audit Outsourcing Services
Legal Services
Appraisal or Valuation
Management Functions or HR
Expert Services
◉ Lead and engagement review partners and limited to how many
consecutive terms?
Answer: 5
◉ How long is the "cooling off period" for employees in a "financial
reporting oversight role" who previously worked with the CPA firm
performing the audit?
Answer: 1 audit cycle
◉ Is a firm independent if an audit partner's compensation is based
on selling engagements to that client for services other than audit,
review, and attest services?
PAPER COMPLETE QUESTIONS AND ANSWERS
FULL SOLUTION
◉ Who oversees the formulation of international accounting
principles?
Answer: IFRS Foundation
◉ Who issues international accounting principles?
Answer: IASB
◉ What does the ASB issue?
Answer: Statements on Auditing Standards (SAS)
◉ Which of the Principles of Professional Conduct, Rules of Conduct,
and Interpretations of Rules of Conduct are not specifically
enforceable?
Answer: Principles of Professional Conduct
◉ Which of the Principles of Professional Conduct, Rules of Conduct,
and Interpretations of Rules of Conduct are specifically enforceable?
Answer: Rules of Conduct
,◉ Which of the Principles of Professional Conduct, Rules of Conduct,
and Interpretations of Rules of Conduct are not specifically
enforceable, but departures must be justified?
Answer: Interpretations of Rules of Conduct
◉ Which of the Principles of Professional Conduct, Rules of Conduct,
and Interpretations of Rules of Conduct is the most general?
Answer: Principles of Professional Conduct
◉ Which of the Principles of Professional Conduct, Rules of Conduct,
and Interpretations of Rules of Conduct is between general and
specific?
Answer: Rules of Conduct
◉ Which of the Principles of Professional Conduct, Rules of Conduct,
and Interpretations of Rules of Conduct is the most specific?
Answer: Interpretations of Rules of Conduct
◉ Definition of Principles of Professional Conduct
Answer: Ideal attitudes and behaviors
◉ Definition of Rules of Conduct
,Answer: Minimally acceptable standards
◉ Definition of Interpretations of Rules of Conduct
Answer: Detailed interpretation and answers to questions regarding
rules of conduct
◉ Six principles of professional conduct
Answer: Responsibilities
The Public Interest
Integrity
Objectivity and Independence
Due Care
Scope and Nature of Services
◉ SEC's rules are predicated on four basic principles of auditor
objectivity and independence
Answer: 1. An auditor should not audit his or her own work.
2. An auditor should not function in the role of management.
3. An auditor should not serve in an advocacy role for the entity.
4. An auditor should not have a mutual or conflicting interest with
an audit client.
, ◉ Prohibited non-audit services for public entities (9)
Answer: Bookkeeping
Actuarial Services
Broker or Dealer
Financial Information Systems Design and Implementation
Internal Audit Outsourcing Services
Legal Services
Appraisal or Valuation
Management Functions or HR
Expert Services
◉ Lead and engagement review partners and limited to how many
consecutive terms?
Answer: 5
◉ How long is the "cooling off period" for employees in a "financial
reporting oversight role" who previously worked with the CPA firm
performing the audit?
Answer: 1 audit cycle
◉ Is a firm independent if an audit partner's compensation is based
on selling engagements to that client for services other than audit,
review, and attest services?
