AICPA Final Exam Already Solved And Graded A+ 2024 update

AICPA Final Exam Already Solved And Graded A+ 2024 update AICPA Final Exam Already Solved And Graded A+ 2024 update 4 parts - Answer Ethical principles Rules of conduct Interpretations Ethical rulings Ethical principles - Answer Ideal standards of ethical conduct stated in philosophical terms: Responsibilities The public interest Integrity Objectivity and independence Due care Scope and nature of services Though not enforceable, the burden of proof on CPA for noncompliance rules of conduct (100-500) - Answer Minimum standards of ethical conduct stated as specific rules These are enforceable Other organizations' rules of conduct can be less or more restrictive than AICPA's: SEC TSBPA For frequent, recurrent questions about a specific rule of conduct Though not enforceable, a CPA must justify departure Prepared by AICPA Division of Professional Ethics ethical rulings - Answer Explanations to specific important questions about rules of conduct Based on questions submitted to AICPA by practitioners Not enforceable, but a CPA must justify departure What Should You Do When AICPA Rules of Conduct Differ from SEC, TSBPA? - Answer Follow whichever is more restrictive If you're not sure about an ethics issue, call the TSBPA AICPA Also Recently Adopted a "Covered Person" Independence Perspective - Answer Previous AICPA rules took a "firm wide" Independence perspective Intended to modernize rules for auditor independence regarding: Investments in audit clients Employment relationships Scope of services provided to SEC clients Old rules were out of date and unnecessarily restrictive, given increasing numbers of dual income families Firm wide perspective: Partners could not own any stock in any client company Managers and below could not own stock of the client if they were in the office doing the audit for the client For example: Joe Abston, manager in Honolulu office, transferred to Dallas office and had to sell Dr Pepper covered persons - Answer The audit engagement team members Persons within the chain of command in relation to the audit team [including concurring partner, Office partner in charge [PIC], regional partner] Partners and managers providing at least 10 hours of non-audit services to the audit client [SEC position] Other partners in the office of the engagement partner The firm and its employee benefit plans An entity controlled by a covered member Safe harbor provision for unsolicited gifts or a bequest that would have impaired independence: SEC 30 days immediate family members - Answer spouse, spousal equivalent, or dependent These relationships are considered ascribed to the covered person independence rule 101 - Answer is impaired if a covered party has a direct financial interest in a client, or a material indirect financial interest in a client A direct interest is ownership of equity shares Indirect interests exemplified: A past due audit fee A relative or dependent owning client equity shares A "low-balled" audit fee Member ownership of shares of mutual fund which owns client shares Some CPA Firms Are Continuing to Follow The More Conservative "Firm-Wide" Approach: i.e. - Answer You Cannot Own Stock in Any Client Company! Interpretation 101-1: Independence Impaired If a Covered Party: - Answer Served as officer or director of an audit client Was trustee or executor having direct or material indirect financial interest in an enterprise [client] Had joint business investment with client or officer thereof material in relation to the member's net worth Had any loan to or from client or officer thereof, except as per interpretation 101-5 Honorary Director or Trustee Positions with Audit Clients: - Answer Independence not impaired if: Organization is a not-for-profit [charitable, religious] audit client Position is purely honorary CPA does not vote or participate in management functions Interpretation 101-2: Former Partners or Shareholders Working for Audit Clients - Answer Firm independence is not affected if: