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Category: Accounting

When should a member apply the conceptual framework for members in public practice? Which rule or rules have their own conceptual framework?

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4-26 (OBJECTIVES 4-5, 4-6) The following relate to auditors’ independence: a. Why is independence so essential for auditors? b. Compare the importance of independence of CPAs with that of other professionals,such as attorneys. c. Explain the difference between independence in appearance and independence of mind. d. Assume that a partner of a CPA firm owns […]

According to the profession’s ethical standards, which of the following events may justify a departure from GAAP?

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MULTIPLE CHOICE QUESTIONS 4-20 (OBJECTIVES 4-5, 4-6, 4-7) The following questions concern auditor professional responsibilities. Choose the best response.a. The concept of materiality would be least important to an auditor when consideringthe(1) adequacy of disclosure of a client’s illegal act. (2) effects of a direct financial interest in the client on the CPA’s independence. (3) […]

What are the six core ethical values described by the Josephson Institute? What are some other sources of ethical values?

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Describe the enforcement mechanisms for CPA conduct REVIEW QUESTIONS 4-1 (OBJECTIVE 4-1) What are the six core ethical values described by the Josephson Institute?What are some other sources of ethical values? 4-2 (OBJECTIVE 4-2) Describe an ethical dilemma. How does a person resolve an ethicaldilemma? 4-3 (OBJECTIVE 4-3) Identify some of the most important ways […]

Distinguish between independence of mind and independence in appearance. Identify an activity that may not affect independence of mind but is likely to affect independence in appearance.

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ASSIGNMENT 1.Distinguish between independence of mind and independence in appearance. Identify anactivity that may not affect independence of mind but is likely to affect independence inappearance.2. Explain the role of the audit committee in enhancing auditor independence.

Why is there a special need for professional conduct by CPAs? How does this differ from the need for special conduct in other professions?

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ASSIGNMENT 1.Suppose that you share a ride to a client with another audit staff member. Your colleague proposes that you both submit mileage reimbursement requests for each dayof the audit even though you share rides. Explain the six-step approach to resolving anethical dilemma and apply it to this situation. 2. Why is there a special […]

PROFESSIONAL ETHICS-Describe the purpose an content of the AICPA Code of Professional Conduct.

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PROFESSIONAL ETHICS Distinguish ethical from unethical behavior in personal and professional contexts. 4-2 Resolve ethical dilemmas using an ethical framework. 4-3 Explain the importance of ethical conduct for the accounting profession. 4-4 Describe the purpose an content of the AICPA Code of Professional Conduct. 4-5 Apply the AICPA Coderules and interpretations on independence and explain […]

Did the audit firm issue a combined or separate report(s) on the financial state- ments and on internal controls over financial reporting?

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ASSIGNMENT 3-30 (OBJECTIVES 3-3, 3-4) Publicly traded companies must electronically file a variety of forms or reports with the SEC, including the Form 10-K, which includes the audited annual financial statements. The SEC makes most of these electronic documents available on the Internet via EDGAR, which stands for Electronic Data Gathering, Analysis, and Retrieval system. […]

Describe how users of the financial statements may benefit from communications about these matters in an audit report.

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ASSIGNMENT 3-27 (OBJECTIVES 3-3) PCAOB Rule 3211, Auditor Reporting of Certain Audit Participants, requires that an audit firm file a form, referred to as Form AP, for each initial issuance of an auditreport. On Form AP, the audit firm discloses the name of each audit engagement partnerwho participated in the audit, as well as the […]

Identify and explain any items included in “Other Information” that need not be part of the auditor’s report.

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ASSIGNMENT a. Identify and explain any items included in “Other Information” that need not be partof the auditor’s report. b. Explain the deficiencies in Patel’s report as drafted.* The following are independent situations for which you will recommend an appropriate audit report: 1. Subsequent to the date of the financial statements as part of his […]

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