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"Do that action which will bring about the greatest good for the greatest number of people," is the basic concept of which ethical theory?egoism deontology utilitarianism virtue ethics

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"Do that action which will bring about the greatest good for the greatest number of people," is the basic concept of which ethical theory?utilitarianism

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Each of the following characteristics describes the importance of integrity in decision making except for:Acting out of moral principle Being loyal to one's superior Having the courage to do the right thing Not subordinating professional judgment to others

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Each of the following characteristics describes the importance of integrity in decision making except for:Being loyal to one's superior

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Each of the following is an element of trustworthiness according to the Josephson Institute except for:Reliability Loyalty Fairness Honesty

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Each of the following is an element of trustworthiness according to the Josephson Institute except for:Fairness

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Eddie paid an $8 restaurant check with a $10 bill. The waitress gave him $12 back. The most ethical action for Eddie is to:Keep the extra $10Inform the waitress of her overpayment Inform the manager of the restaurant of the overpayment Leave a larger tip for the waitress

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Eddie paid an $8 restaurant check with a $10 bill. The waitress gave him $12 back. The most ethical action for Eddie is to:Inform the waitress of her overpayment

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Ethical relativism can best be described as a: Point of view that morality is relative to the norms of one's culture. Concept that holds that integrity should be maintained in the face of pressure by others. An ethical reasoning method that holds one should always act out of selfinterest. An ethical reasoning method that holds one should always consider the effect of one's actions on others.

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Ethical relativism can best be described as a: Point of view that morality is relative to the norms of one's culture.

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George is in the middle of a high stakes poker game when he notices what he thinks is cheating by another player. It appears to George that this player took a card from his lap and switched it with a card that he was dealt. If George is a utilitarian thinker, he should:Accuse the alleged cheater of cheating in front of all the other playersConsider what might happen if he accuses the player of cheating and he is wrong Speak to the alleged cheater during a regularly scheduled break and tell him not to do it again Forget about the whole matter

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George is in the middle of a high stakes poker game when he notices what he thinks is cheating by another player. It appears to George that this player took a card from his lap and switched it with a card that he was dealt. If George is a utilitarian thinker, he should:Consider what might happen if he accuses the player of cheating and he is wrong

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Greatest good for the greatest number of people is the theory of. Rights Deontology Utilitarianism Justice

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Greatest good for the greatest number of people is the theory of. Utilitarianism

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If one's reputation is tainted it may create a: Conflict of interests Loss of independence Lack of trust All of these

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If one's reputation is tainted it may create a: Lack of trust

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Jane finds a material misstatement while auditing a client's accounts receivables. Her senior tells her to ignore the misstatement so that the client does not get upset. Jane wants to be viewed as a team player in order to advance in the firm. So Jane follows her senior's instructions and ignores the misstatement. Which ethical theory did Jane use to make her decision?Egoism Justice Virtue ethics Utilitarianism

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Jane finds a material misstatement while auditing a client's accounts receivables. Her senior tells her to ignore the misstatement so that the client does not get upset. Jane wants to be viewed as a team player in order to advance in the firm. So Jane follows her senior's instructions and ignores the misstatement. Which ethical theory did Jane use to make her decision?Egoismtính ích k?

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Kelly is the controller of a small company. One day the CFO comes in and tells her to lower the estimate of uncollectible accounts receivable. Kelly insists her numbers are correct as is. The CFO tells her it will mean her job at the company if she doesn't go along with the smaller estimate. The primary virtue that would enable Kelly to resist the pressure to manipulate the number is:Loyalty Integrity Caring Civic responsibility

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Kelly is the controller of a small company. One day the CFO comes in and tells her to lower the estimate of uncollectible accounts receivable. Kelly insists her numbers are correct as is. The CFO tells her it will mean her job at the company if she doesn't go along with the smaller estimate. The primary virtue that would enable Kelly to resist the pressure to manipulate the number is:Integrity

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Objectivity requires that a CPA should: Maintain a mental attitude of impartiality Maintain a mental attitude of intellectual honesty Be free of conflicts of interest All of these

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Objectivity requires that a CPA should: Selected Answer: All of these

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Respect is an important character of behavior because: It encompasses attributes of how we should treat others It entails a loyalty obligation to one's superior It enables one to perform professional services competently It is critical to maintaining one's integrity

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Respect is an important character of behavior because: It encompasses attributes of how we should treat others

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Steve is deep in debt due to a gambling problem. He is the bookkeeper for a family owned business, Cal Poly Greenery. The company has only three employees Steve, the husband, and the wife. All three have been friends for many years. One day the loan shark who lent Steve $20,000 comes knocking at his door asking for repayment of the loan. Steve convinces the loan shark to give him another day. The following day Steve writes a check on the company's books to himself for $20,000. Since he reconciles the bank accounts and prepares the financial statements, Steve knows it's unlikely the owners will ever know about what he has done. From an ethical perspective, Steve hasViolated the trust placed in him by the ownersRisked his reputation if the owners find out Compromised his integrity All of these

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Steve is deep in debt due to a gambling problem. He is the bookkeeper for a family owned business, Cal Poly Greenery. The company has only three employees Steve, the husband, and the wife. All three have been friends for many years. One day the loan shark who lent Steve $20,000 comes knocking at his door asking for repayment of the loan. Steve convinces the loan shark to give him another day. The following day Steve writes a check on the company's books to himself for $20,000. Since he reconciles the bank accounts and prepares the financial statements, Steve knows it's unlikely the owners will ever know about what he has done. From an ethical perspective, Steve hasAll of these

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The ancient Greeks thought of the virtues as characteristics of behavior that: Could lead to a good life Make up the "six pillars of character" Support the rights theory All of these

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The ancient Greeks thought of the virtues as characteristics of behavior that: Could lead to a good life

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The country with the highest Power Distance score is Russia United States United Kingdom Japan

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The country with the highest Power Distance score is Russia

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The credibility standard in the Statement of Ethical Professional Practice of the IMA requires that an accounting professional should: Communicate information fairly and objectively Disclose all relevant information that might affect the intended user's understanding of the reports, analyses or recommendations Disclose delays or deficiencies in information, timeliness, processing or internal controls in conformance with organization policy and the law All of these

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The credibility standard in the Statement of Ethical Professional Practice of the IMA requires that an accounting professional should: All of these

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The ethical reasoning method that is based on treating equals, equally and unequals, unequally is: Enlightened egoism Act utilitarianism Justice Virtue

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The ethical reasoning method that is based on treating equals, equally and unequals, unequally is: Justice

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The method of ethical reasoning that does not deal with making decisions after considering the interests of others is: Egoism Enlightened Egoism Utilitarianism Rights Theory

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The method of ethical reasoning that does not deal with making decisions after considering the interests of others is: Egoism

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The method of ethical reasoning that requires selecting the correct moral rule that produces the greatest benefits over harms is: Act Utilitarianism Rule Utilitarianism Rights Theory Justice

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The method of ethical reasoning that requires selecting the correct moral rule that produces the greatest benefits over harms is: Rule Utilitarianism

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The most important duty of public accounting is to the: Securities Exchange Commission Current stockholders Management Investing public

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The most important duty of public accounting is to the: Investing public

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Treating other fairly encompasses treating them: Equally, impartially, and responsibly Equally, responsibly, and openly Impartially, openly, and diligently Equally, impartially, and openly

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Treating other fairly encompasses treating them: Equally, impartially, and openly

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Virtue ethics is Doing what is right One's duty to act in a socially acceptable manner One's ability to meet or exceed their potential What one ought to do when presented with an ethical dilemma

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Virtue ethics is Doing what is right

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What is the one virtue that people should want in a boss to trust the boss? Diligence Commitment Honesty Sense of humor

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What is the one virtue that people should want in a boss to trust the boss? Honesty

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When an employee is given a job evaluation, he has a right to expect Fair, but honest evaluations Glowing reports 360 degree evaluations from everyone in the firm Evaluations of technical, not personal skills

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When an employee is given a job evaluation, he has a right to expect Fair, but honest evaluations

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When is it appropriate to contact the audit committee about a difference of opinion with the CFO over an accounting or financial reporting manner? If the CFO does not agree to correct the financial statements The CEO supports the CFO and does not agree to correct the financial statements The external auditors support the CEO and do not agree to correct the financial statements The audit committee should always be the first to be informed about such a difference of opinion

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When is it appropriate to contact the audit committee about a difference of opinion with the CFO over an accounting or financial reporting manner? The CEO supports the CFO and does not agree to correct the financial statements

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Which theory is based on doing what is right despite the consequences? Deontology Virtue ethics Teleology Egoism

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Which theory is based on doing what is right despite the consequences? Deontology

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Your manager asks you to "cook the books" to support a loan application at the local bank. The manager insists it is a onetime request. If you are a person of integrity, what should you do? Go along with the manager's request Talk to others in the company to determine how they handled such situations Refuse to go along with the request Inform the audit committee

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Your manager asks you to "cook the books" to support a loan application at the local bank. The manager insists it is a onetime request. If you are a person of integrity, what should you do? Refuse to go along with the request

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# 2 At which stage of Kohlberg's view on ethical development is an individual's actions influenced by group norms?Stage 1 Stage 2 Stage 3 Stage 4

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At which stage of Kohlberg's view on ethical development is an individual's actions influenced by group norms? Stage 3

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Each of the following considerations should help to evaluate alternative courses of action in the decision making model except for: Whether the alternatives are consistent with professional standards Whether the alternatives are consistent with firm policies and its own code of ethics The stage of moral development of the decision maker The potential harms and benefits of alternative courses of action

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Each of the following considerations should help to evaluate alternative courses of action in the decision making model except for: The stage of moral development of the decision maker

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In Thorne's model of ethical decision making, the instrumental virtues relate to: Moral sensitivity Ethical reasoning Ethical motivation Ethical character

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In Thorne's model of ethical decision making, the instrumental virtues relate to: Ethical character

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In reference to Rest's four component Model of Morality, which component reflects an individual's willingness to place ethical values ahead of non ethical values that relate to self interest?Moral Character Moral Motivation Moral Sympathy Moral Judgment

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In reference to Rest's four component Model of Morality, which component reflects an individual's willingness to place ethical values ahead of non ethical values that relate to self interest?Moral Motivation

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In stage 3 of Kohlberg's model, ethical reasoning is motivated by: Satisfaction of one's needs Acting in the best interests of others Upholding the rights, values, and legal contracts of society Acting based on universal principles

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In stage 3 of Kohlberg's model, ethical reasoning is motivated by: Acting in the best interests of others

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Individuals who reason at stage 6 incorporate ethical reasoning based on: The morality of law and duty to the social order A rational calculation of benefits and harms to society Universal ethical principles All of these

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Individuals who reason at stage 6 incorporate ethical reasoning based on: All of these

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James Rest's model of ethical action involves four components inherent to the ethical decision making process. Which of the following relates to a person's moral judgment?Interpreting a situation as a moral dilemmaWillingness to place ethical values ahead of nonethical values Intention to act ethically aligning to his values Outcome of one's prescriptive reasoning

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James Rest's model of ethical action involves four components inherent to the ethical decision making process. Which of the following relates to a person's moral judgment?Outcome of one's prescriptive reasoning

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Keesha is the CEO of a publiclyowned company. She was informed by the CFO that the company's earnings were down 30 percent from the prior year due to the recession. The company's stock price has declined by 20 percent. The CFO comes up with a scheme to hide debt and inflate revenues by selling under performing assets to a special purpose entity affiliated with the company. Keesha is concerned about possible effects on the creditors but ultimately she agrees to the accounting. Keesha is reasoning at:Stage 1 Stage 2 Stage 3 Stage 4

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Keesha is the CEO of a publiclyowned company. She was informed by the CFO that the company's earnings were down 30 percent from the prior year due to the recession. The company's stock price has declined by 20 percent. The CFO comes up with a scheme to hide debt and inflate revenues by selling under performing assets to a special purpose entity affiliated with the company. Keesha is concerned about possible effects on the creditors but ultimately she agrees to the accounting. Keesha is reasoning at:Stage 2

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Kohlberg's model can best be described as: The various phases in one's moral development and related levels of moral reasoning A model of ethical action that is based on one's moral development A predictive tool to determine how a person will reason ethically based on one's moral development A model of agespecific levels of moral reasoning

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Kohlberg's model can best be described as: The various phases in one's moral development and related levels of moral reasoning

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Rest's "Four Component Model of Morality" can best be described as: A description of the values that influence ethical decision making A model of the relationship between ethical action and one's level of moral development A model of moral judgment based on one's possession of certain virtues of behavior All of these

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Rest's "Four Component Model of Morality" can best be described as: A model of the relationship between ethical action and one's level of moral development

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Rest's components of a moral model include all but Moral sensitivity Moral development Moral judgment Moral character

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Rest's components of a moral model include all but Moral development

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Steve is in charge of accounting for the purchase of equipment at Cal Works, Inc. The company has a policy that all expenditures less than $1,000 must be expensed. Steve decides to take a $900 expenditure and separate $600 one and combine them into one $1,500 expenditure so that the total can be capitalized thereby eliminating the effects on income. Steve's actions can be characterized as:Lacking in of moral sensitivity Lacking in professional skepticism Loyal to the company's best interests All of these

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Steve is in charge of accounting for the purchase of equipment at Cal Works, Inc. The company has a policy that all expenditures less than $1,000 must be expensed. Steve decides to take a $900 expenditure and separate $600 one and combine them into one $1,500 expenditure so that the total can be capitalized thereby eliminating the effects on income. Steve's actions can be characterized as:Lacking in of moral sensitivity

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The ethical domain in accounting and auditing refers to: The important constituent groups affected by accounting and auditing work The stages of the moral development of accountants and auditors The decision making process followed by accountants and auditors All of these

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The ethical domain in accounting and auditing refers to: The important constituent groups affected by accounting and auditing work

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The importance of framing the ethical issue in the decision making model is: Identify the stakeholders affected by intended actions Evaluating alternative courses of action using moral reasoning methods Identify the accounting issues present in a case Providing a perspective to apply the decision making model to specific facts of the case

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The importance of framing the ethical issue in the decision making model is: Providing a perspective to apply the decision making model to specific facts of the case

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What are the implications of reasoning at stages 3 and 4? A CPA unable to apply technical accounting standards is unlikely to be influenced by others. A CPA is unlikely to be influenced by rules or authority. A CPA is unlikely to be influenced or give into pressures. A CPA unable to apply technical accounting standards is likely to be influenced by others.

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What are the implications of reasoning at stages 3 and 4? A CPA unable to apply technical accounting standards is likely to be influenced by others.

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What needs to be coupled with moral motivation to act on moral judgment? Courage External pressures Loyalty Internal pressures

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What needs to be coupled with moral motivation to act on moral judgment? Courage

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Each of the following is an ethical issue in business except for: Honesty and fairness Independence Conflicts of interest Fraud

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Each of the following is an ethical issue in business except for: Independence

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Fraud can be defined as: A deliberate misrepresentation to gain an advantage over another party A coverup of a mistake made in the financial statements An error in preparing financial statements All of these

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Fraud can be defined as: A deliberate misrepresentation to gain an advantage over another party

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In the Ethical Dissonance Model, a high person organization fit requires: High organizational ethics, low individual ethics High organizational ethics, high individual ethics Low organizational ethics, high individual ethics Low organizational ethics, low individual ethics

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In the Ethical Dissonance Model, a high person organization fit requires: High organizational ethics, high individual ethics

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A unique aspect of occupational fraud is: The misuse of company assets The falsification of financial statements The failure to disclose full and complete information All of these

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A unique aspect of occupational fraud is: The misuse of company assets

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According to the 2012 Global fraud Study of the ACFE, the most common method of initial detection of occupational fraud is: Internal audit Management review External audit Tip

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According to the 2012 Global fraud Study of the ACFE, the most common method of initial detection of occupational fraud is: Tip

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Each of the following is a pillar of corporate governance except for: Responsibility Accountability Fairness Independence

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Each of the following is a pillar of corporate governance except for: Independence

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The Agency Theory can best be described as: The relationship between top management and the board of directors The relationship between the board of directors and shareholders The relationship between top management and the board of directors, and shareholders The relationship between the external auditors and top management

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The Agency Theory can best be described as: The relationship between top management and the board of directors, and shareholders

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The stakeholder view emphasizes the obligations of management to: The shareholders The shareholders and creditors All parties impacted by corporate decisions in a significant way The board of directors

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The stakeholder view emphasizes the obligations of management to: All parties impacted by corporate decisions in a significant way

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The level of care expected of a reasonable person under similar circumstances in meeting one's fiduciary duty is called: Duty of loyalty Duty of care Transparency All of these

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The level of care expected of a reasonable person under similar circumstances in meeting one's fiduciary duty is called: Duty of care

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An ethical corporate culture can best be established by: Setting a proper tone at the top Establishing strong internal controls Having an effective internal audit function All of these

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An ethical corporate culture can best be established by: All of these

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The ethical dissonance model looks at the ethical fit of the organizational and individual values. The optimal fit for an individual with high individual ethics would be: High High High Low Low High Low Low

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The ethical dissonance model looks at the ethical fit of the organizational and individual values. The optimal fit for an individual with high individual ethics would be: High High

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A seemingly positive result of the 2011 National Business Ethics Survey is: The percentage of employees who had reported misconduct at work is increasing Pressure to compromise ethical standards has been decreasing The rate of retaliation against whistle blowers has been decreasing The percentage of employees who said they could question management without fear of retaliation is decreasing

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A seemingly positive result of the 2011 National Business Ethics Survey is: The percentage of employees who had reported misconduct at work is increasing

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The 2011 National Business Ethics Survey indicates each of the following with respect to how employees view the ethics and ethical practices of organizations they work for except for: Misconduct at work has declined over the years Whistle blowing is up Ethical cultures are weaker Pressure to cut corners is lower

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The 2011 National Business Ethics Survey indicates each of the following with respect to how employees view the ethics and ethical practices of organizations they work for except for: Ethical cultures are weaker

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A reason that Bernie Madoff was able to pull off the Ponzi scheme for so long was: He was trusted by those who invested with him The SEC failed to act on tips about Madoff's questionable practices The auditors either looked the other way or didn't look too hard to find the fraud All of these.

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A reason that Bernie Madoff was able to pull off the Ponzi scheme for so long was: All of these.

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The COSO report states that management should enact five components related to internal control objectives including each of the following except for: Control environment Risk assessment Risk activities Monitoring

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The COSO report states that management should enact five components related to internal control objectives including each of the following except for:Risk activities

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Which of the following is not an ethical issue in business? Conflicts of interest Maximization of profits Discrimination Information technology

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Which of the following is not an ethical issue in business? Maximization of profits

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Which is a questionable ethical work behavior of an employee? Handing in all assignments on time. Taking time off without pay to attend to a family crisis. Using social media during the work day to update your Facebook page. Giving your best effort during work time.

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Which is a questionable ethical work behavior of an employee? Using social media during the work day to update your Facebook page.

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What is the agency problem? Managers place corporate goals ahead of personal goals. Managers place personal goals ahead of corporate goals. Managers place social goals ahead of personal goals. Managers place corporate goals ahead of social goals.

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What is the agency problem? Managers place personal goals ahead of corporate goals.

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Which of the following is not used to overcome the agency problem? Executive compensation Audited financial statements Related party transactions Internal controls

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Which of the following is not used to overcome the agency problem? Related party transactions

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The 2010 DoddFrankAct includes additional incentives for whistleblowers. What is the act's effect on whistleblowing by accountants? No accountant, internal or external, whether by job title or certification may receive a reward. All accountants who whistleblow are protected against retaliation. Internal auditors who whistleblow may receive a reward. A CPA may report a violation of a public accounting firm's performance in an audit.

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The 2010 DoddFrankAct includes additional incentives for whistleblowers. What is the act's effect on whistleblowing by accountants? A CPA may report a violation of a public accounting firm's performance inan audit.

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The relationship between the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy and rule of law is known as Code of ethics Corporate sustainability Corporate responsibility Corporate governance

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The relationship between the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy and rule of law is known as Corporate governance

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The most important values included in corporate values statements include: Pursuit of selfinterests Commitment to beating the competition Diversity Integrity and ethical behavior

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The most important values included in corporate values statements include: Integrity and ethical behavior

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To whom does the management owe its ultimate allegiance? Employees Creditors Shareholders Government

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To whom does the management owe its ultimate allegiance? Shareholders

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A similarity between the Bernie Madoff situation and that of R. Allen Stanford is they both were: The head of a major U.S. stock exchange The CEO of a company that went out of business after a major financial statement fraud Involved in Ponzi schemes Exonerated in a trial because of lack of evidence of wrongdoing

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A similarity between the Bernie Madoff situation and that of R. Allen Stanford is they both were: Involved in Ponzi schemes

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An ethical organization incorporates what into their decision making process: Core values Strategic policies Reporting responsibilities All of these

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An ethical organization incorporates what into their decision making process: All of these

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The primary ethical concern when contemplating whistleblowing as an accountant is: It may violate my ethical obligations It may fail to correct the matter It may not be considered ethical by my employer All of these

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The primary ethical concern when contemplating whistleblowing as an accountant is: It may violate my ethical obligations

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Each of the following were themes of the investigations of the accounting profession during the 1970s and 1980s except for: Whether low balling to obtain audits impairs independence Whether nonaudit services impair auditor independence The need for a report on internal controls The importance of developing techniques to prevent and detect fraud

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Each of the following were themes of the investigations of the accounting profession during the 1970s and 1980s except for: Whether low balling to obtain audits impairs independence

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The House Subcommittee on Oversight and Investigations made its recommendations after looking into failures at: ESM Government Securities Continental Illinois National Bank and Trust Penn Square Bank All of these

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The House Subcommittee on Oversight and Investigations made its recommendations after looking into failures at: All of these

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In its investigation of ZZZZ Best, the House Subcommittee on Oversight and Investigations looked into: Why the board of directors failed to uncover the fraud at ZZZZ Best How the company was able to create 80% or more fictitious revenue How the company was able to create cookie jar reserves All of these

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In its investigation of ZZZZ Best, the House Subcommittee on Oversight and Investigations looked into: How the company was able to create 80% or more fictitious revenue

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The cost to the public to clean up 1,043 failed savings and loan institutions during the period of 1986- 1995 was: $152.9 billion including $123.8 billion of U.S. taxpayer losses $300 million including $123.8 million of U.S. taxpayer losses $400 billion including $152.9 billion of U.S. taxpayer losses $400 million including $152.9 billion of U.S. taxpayer losses

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The cost to the public to clean up 1,043 failed savings and loan institutions during the period of 1986- 1995 was: $152.9 billion including $123.8 billion of U.S. taxpayer losses

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One of the Contributions of the Treadway Commission Report and the work of the Committee of Sponsoring Organizations (COSO) was: To establish a voluntary process for peer review To identify red flags that might lead to fraud To identify the tone at the top for management to create an ethical culture All of these

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One of the Contributions of the Treadway Commission Report and the work of the Committee of Sponsoring Organizations (COSO) was: To identify the tone at the top for management to create an ethical culture

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James Doty, the chairman of the PCAOB, in his testimony before Congress on the financial crisis of 2007 2008, admitted that auditors should have been more vigilant—not just at Lehman Brothers, but across the board. Which audit areas did Doty signal out for criticism?Inventories and cash flowCapital and operating expenses Special purpose and related party entities Valuations and end of period transactions

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James Doty, the chairman of the PCAOB, in his testimony before Congress on the financial crisis of 2007 2008, admitted that auditors should have been more vigilant—not just at Lehman Brothers, but across the board. Which audit areas did Doty signal out for criticism?Valuations and end of period transactions

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The ethics rules that applies solely to those who conduct an audit of a client entity is: Independence Objectivity Integrity All of these

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The ethics rules that applies solely to those who conduct an audit of a client entity is: Independence

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The conceptual framework for the AICPA Independence standards can best be characterized as: A model to prevent fraud from occurring An approach to identify threats to independence An approach to identify fraud risks A model to assist controllers in dealing with differences of opinion with top management on accounting issues

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The conceptual framework for the AICPA Independence standards can best be characterized as: An approach to identify threats to independence

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In the ESM fraud discussed in this chapter, Jose Gomez violated the Independence standard because he: Had loans outstanding from the client Engaged in a business relationship with the client Had family members who owned stock directly in the client All of these

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In the ESM fraud discussed in this chapter, Jose Gomez violated the Independence standard because he: Had loans outstanding from the client

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To avoid violating independence when engaged in nonattest services for an audit client, a CPA must: Make all management decisions and perform all management decisions Evaluate the adequacy and results of the services performed Avoid being biased when providing nonattest services for the audit client Avoid being pressured by the client when providing nonattest services for the audit client

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To avoid violating independence when engaged in non attest services for an audit client, a CPA must: Avoid being biased when providing nonattest services for the audit client

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Under the Sarbanes Oxley Act, the auditor's responsibility with respect to internal controls can best be stated as: Develop a system of internal controls that helps to prevent and detect fraud Assess whether the internal controls helps to prevent and detect fraud Assess management's report on internal controls All of these

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Under the Sarbanes Oxley Act, the auditor's responsibility with respect to internal controls can best be stated as: Assess management's report on internal controls

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The due care principle in the AICPA code: Addresses the quality of the individual who performs professional services Addresses the quality of services performed by the CPA Addresses whether the independence standards has been met All of these

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The due care principle in the AICPA code: Addresses the quality of services performed by the CPA

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The confidentiality standard in the AICPA code provides for exceptions to the rule in: In response to a validly issued court summons To provide information to the CPA's peer reviewers To defend oneself in an ethics investigation All of these

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The confidentiality standard in the AICPA code provides for exceptions to the rule in: All of these

question

In the Fund of Funds case discussed in this chapter, the external auditors violated which rule of conduct? Due care The financial statements were certified as being in conformity with GAAP when that was not the case The financial statements were certified as being in conformity with generally accepted auditing standards when that was not the case Confidentiality

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In the Fund of Funds case discussed in this chapter, the external auditors violated which rule of conduct? Confidentiality

question

If a client refuses to accept an auditors' report that has been modified, the public accounting firm should withdraw from the engagement and give its reasons in writing to the board of directors except when: The auditor is unable to obtain sufficient appropriate evidence about a suspected illegal act The client fails to account for or disclose properly a material amount connected with an illegal act The auditor is unable to estimate amounts involved in an illegal act The auditor is unable to observe the physical inventory

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If a client refuses to accept an auditors' report that has been modified, the public accounting firm should withdraw from the engagement and give its reasons in writing to the board of directors except when: The auditor is unable to observe the physical inventory

question

A CPA can accept a contingent fee in providing tax services for an attest client if: The CPA discloses this fact to the tax client The CPA receives the permission of the client to accept such a form of payment The CPA's tax services will be reviewed by a taxing authority All of these

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A CPA can accept a contingent fee in providing tax services for an attest client if: The CPA's tax services will be reviewed by a taxing authority

question

CPAs can advertise and solicit clients as long as such practices are: Conducted in a professional manner Informative about the CPA's services Not conducted in a misleading or deceptive manner Paid for by outside parties

answer

CPAs can advertise and solicit clients as long as such practices are: Not conducted in a misleading or deceptive manner

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