Audit Ch 3 Questions

The AICPA Code of Professional Conduct states that a CPA shall not disclose any confidential information obtained in the course of a professional engagement except with the consent of the client. This rule may preclude a CPA from responding to an inquiry made by?

A CPA shareholder of the client corporation

In which of the following situations would a public accounting firm have violated the AICPA Code of Professional Conduct in determining its fee?

A fee is based on whether or not the public accounting firms audit report lead to the approval of the clients application for bank financing.

Which of the following is not a covered member for an attest engagement under the Independence rule of the AICPA code of professional conduct?

A partner in the national office of the fir that performs marketing services.

A public accounting firm would least likely be considered in violation of the AICPA Independence rule in which of the following instances?

A partner's checking account, which is fully insured by the Federal Deposit insurance corp is held at a financial institution for which the public accounting firm perform attest services.

Which of the following is not prohibited by the AICPA Code of Professional Conduct? a. Advertising in newspapers b. Payment of commission to obtain an audit client c. acceptance of a contingent fee for a review of financial statements. 4. Engaging in discriminatory employment practices

Advertising in newspapers

Which of the following is most likely to be a violation of the AICPA rules of conduct by Bill Jones a sole practitioner with no other employees?

Jones names his firm Jones and Smith, CPA

Which of the following nonattest services may be performed by the auditors of a public company?

Preparation of the company's tax returns

Compliance with Standard Rules requires CPAs to adhere to all of the following applicable standards except:

Statements on Responsibilities for Assurance Services

Bill Adams CPA accepted the audit engagement of Kelly Company. During the audit Adams became aware of his lack of competence required for the engagement. What should Adams do

Suggest that Kelly company engage another CPA to perform the audit.

Which of the following is implied when a CPA signs the preparer's declaration on a federal income tax return?

The return is not misleading based on all information of which the CPA has knowledge

In providing nonattest services to an attest client, a CPA is allowed to perform which of the following functions?

Training client employees

Which of the following provisions is not included in The Institute of Internal Auditors Code of Ethics?

Use of appropriate sampling methods used to select areas for audit.