Accounting Ethics Chapter 4 Learnsmart

The two broad conceptual frameworks in the AICPA Revised Code apply to which of the following? (Select all that apply.) Multiple select question. CPAs in business Members in private practice Members in consulting Members in public practice CPAs in tax services

CPAs in business Members in public practice

Which of the following may violate the Independence Rules? Multiple choice question. Close relatives of a CPA hold management positions at the client A CPA owns a financial interest in an unrelated company The audit firm provides tax services to an attest client.

Close relatives of a CPA hold management positions at the client

Having the appropriate technical qualifications to perform professional services describes what for CPAs in professional practice? Multiple choice question. Due care Confidentiality Independence Compliance Competence

Competence

Which of the following professional standards must tax accountants adhere to when providing professional services? (Check all that apply.) Multiple select question. Independence Rule Confidentiality Rule SSTS Commissions Rule Contingent Fees Rule

Confidentiality Rule SSTS Contingent Fees Rule

Which of the following should be avoided when accountants make professional judgment? (Select all that apply.) Multiple select question. Conflict of interest Undue influence Bias Full knowledge of facts Independence requirements

Conflict of interest Undue influence Bias

Under Interpretation 1-1 , to determine whether required reporting and disclosure standards have been satisfied, a CPA should (check all that apply): Multiple select question. Consider applicable regulations and standards regarding reliance on information and advice received from a third party Consider the business purpose or economic substance of the transaction Identify relevant and immaterial background facts Consider the reasonableness of the assumptions and representations

Consider applicable regulations and standards regarding reliance on information and advice received from a third party Consider the reasonableness of the assumptions and representations

Which of the following are included in protected confidential information? Multiple select question. Customer lists Marketing strategies External financial statements Company Code of Ethics Company Code of Conduct

Customer lists Marketing strategies

The primary concern of the SEC when confidential information about a client is leaked to another party is Blank______. Multiple choice question. the SEC would never be able to prove securities fraud it influences the level playing field that should exist between the auditor and the general public the auditor may receive nothing in return for the leaked information the SEC will be unable to go after the person who received the tip for any improperly received stock gains

it influences the level playing field that should exist between the auditor and the general public

The acceptance of a contingent fee for professional services when also preparing attest-related services for a client is prohibited because Blank______. Multiple choice question. it creates an undue influence threat to independence it creates a self-review threat to independence it is a violation of independence there is no third-party reliance on the services

it is a violation of independence

The potential danger of any family relationship with an audit client is Blank______. (Check all that apply.) Multiple select question. it may create the perception that independence may be impaired the family member may hold a key position with the client the family member might be fired by the client the CPA may not have knowledge of the relationship

it may create the perception that independence may be impaired the family member may hold a key position with the client

In October, 2020, the SEC recommended amendments to Rule 2-01 of Regulation SX to (select all that apply): Multiple select question. lessen threats to an auditor's objectivity increase investor protection improve internal controls improve education requirements for CPAs

lessen threats to an auditor's objectivity increase investor protection

Under the SEC's rules, accountants are not considered to be independent if they: Multiple choice question. maintain bank accounts with an audit client with balances greater than FDIC depositary insurance limits own stock of unrelated companies in their retirement accounts properly disclose all conflicts of interest

maintain bank accounts with an audit client with balances greater than FDIC depositary insurance limits

Restrictions exist on advertising and solicitation practices because they Blank______. Multiple choice question. involve referral fees involve contingent fee payments may lead a reasonable person to misunderstand or be deceived by the nature of the services impair independence when also providing attest services for the client

may lead a reasonable person to misunderstand or be deceived by the nature of the services

The AICPA Revised Code of conduct includes material for CPAs in business to evaluate the relationship between the CPA and their employer and any potential threats to Blank______. Multiple choice question. the Integrity and Objectivity Rule the Insider Trading Rule the Independence Rule the Attest Rule

the Integrity and Objectivity Rule

A CPA can disclose confidential client information when Blank______. Multiple choice question. there is a change of auditor specifically instructed to do so by CPA firm management it is necessary for the financial statements to be presented in conformity with GAAP the client specifically consents

the client specifically consents

Caterpillar was ordered to pay millions in back taxes and penalties because Blank______. (Select all that apply.) Multiple choice question. the firm improperly shifted profits from the U.S. to another country with a lower tax rate the firm failed to properly document contingent fees owed the company created tax shelter investments for wealthy investors their tax shelter transactions broke the law because they involved economic risk

the firm improperly shifted profits from the U.S. to another country with a lower tax rate

.A concern of state boards of accountancy about CPA-firm names is that Blank______. (Check all that apply.) Multiple select question. the firm name may mask the true identity of the firm none of the services provided by the firm are attest services none of the owners are licensed CPAs the firm name may be misleading

the firm name may mask the true identity of the firm the firm name may be misleading

KPMG was criminally prosecuted for its role in a tax shelter scandal during 1996 to 2002, because Blank______. Multiple choice question. it created tax shelter investments for wealthy clients the firm failed to document the true nature of the tax shelters the firm prepared false documents to deceive regulators about the true nature of the tax shelters the tax shelter transactions broke the law because they involved economic risk

the firm prepared false documents to deceive regulators about the true nature of the tax shelters

Multiple Choice Question Resolution of ethical conflict may call for consulting with all of the following individuals except: Multiple choice question. the employer the client legal counsel the media

the media

If a client refuses to provide consent for a predecessor auditor to discuss confidential client information to the successor auditor, the best response by the successor would be Blank______. Multiple choice question. to be skeptical and concerned about the reasons for denying permission to report the matter to regulatory authorities to discuss the matter with top management and the board of directors

to be skeptical and concerned about the reasons for denying permission

True or false: A CPA may recommend a tax return position if she concludes that there is a reasonable basis for the position and advises the taxpayer to disclose that position appropriately.

true

Threats to the independence of CPAs include Blank______. (Check all that apply.) Multiple select question. familiarity threat management oversight threat unlikely influence threat self-review threat financial self-interest threat advocacy threat

familiarity threat self-review threat financial self-interest threat advocacy threat

When a CPA owns stock of a client, this may create a Blank______. Multiple choice question. financial self-interest threat adverse interest threat self-review threat undue influence threat

financial self-interest threat

When a CPA owns stock of a client, this may create a Blank______. Multiple choice question. financial self-interest threat undue influence threat self-review threat adverse interest threat

financial self-interest threat

The spirit of the rules suggests the essence of professionalism is Blank______. (Select all that apply.) Multiple select question. follow the spirit of the rule act ethically whenever economically possible protect the public interest follow the letter of the rule

follow the spirit of the rule protect the public interest follow the letter of the rule

Amendments to Rule 2-01 of Regulation SX would modernize the rules and focus on relationships that may pose threats to an auditor's (select all that apply): Multiple select question. due care confidentiality impartiality Objectivity

impartiality Objectivity

Amendments to Rule 2-01 of Regulation SX would modernize the rules and focus on relationships that may pose threats to an auditor's (select all that apply): Multiple select question. confidentiality impartiality objectivity due care

impartiality objectivity

Safeguards that might eliminate or reduce threats to independence include those Blank______. (Check all that apply.) Multiple select question. implemented by the attest client implemented by the firm created by the profession created by legislation identified in peer reviews created by the facts of a particular situation

implemented by the attest client implemented by the firm created by the profession created by legislation

State board rules of accounting prohibit the use of a firm name that Blank______. (Check all that apply.) Multiple select question. implies unjustified services includes the use of "CPA" is deceptive includes the accountant's name is misleading

implies unjustified services is deceptive is misleading

Circumstances that create doubts about the ability of a CPA to act with integrity, objectivity, or professional skepticism are classified as threats to an auditor's

independence

The acceptance of a contingent fee for certain tax services is prohibited when also providing attest services for the client because of a potential violation of the _______ rule. (Enter one word per blank.)

independence

The state of mind that permits the performance of an attest service without being influenced in ways that compromise professional judgment is called Blank______. Multiple choice question. independence in appearance integrity moral independence independence in fact

independence in fact

If an accountant, with respect to an audit client, is able to exercise objective and impartial judgment on all issues relative to the engagement, the SEC deems the accountant to be ____________

independent

.Advertising and solicitation practices raise ethical issues for CPAs that were not present years ago because Blank______. (Check all that apply.) Multiple select question. CPAs are less ethical today than years ago information is more readily available CPAs have more restrictions on the scope of practices the new forms of advertising create challenges for regulators

information is more readily available the new forms of advertising create challenges for regulators

If a CPA in professional practice employs the services of a third-party provider, the CPA Blank______. Multiple choice question. is responsible for verifying that the third party meets competence standards is prohibited from overseeing the work of the third party is no longer responsible for client confidentiality assumes the third party meets all competence standards

is responsible for verifying that the third party meets competence standards

If the applicable taxing authority does not have written standards that apply to recommending a tax return position or preparing or signing a tax return, how should a CPA proceed? Multiple choice question. a CPA should not take these actions unless the CPA has a good-faith belief that the position meets the realistic possibility of success standard. a CPA should take these actions if the CPA has a good-faith belief that the position meets the Accounting Principles Rule. a CPA should not take these actions unless the CPA has a good-faith belief that the position meets the realistic possibility of meeting the General Standards Rule.

a CPA should not take these actions unless the CPA has a good-faith belief that the position meets the realistic possibility of success standard.

A report prepared on behalf of the UK Parliamentary Labour Party suggests removing conflicts of interest by: Multiple select question. a legal split between audit and nonaudit services an operational split between audit and nonaudit services structural break-up of large firms

a legal split between audit and nonaudit services structural break-up of large firms

Which of the following are common cognitive traps that our judgment can incur? (Select all that apply.) Multiple select question. Professional skepticism Problem solving rush Moral biases Groupthink Judgment triggers

Problem solving rush Groupthink Judgment triggers

The difference between receipt of a contingent fee and a commission or referral fee is that Blank______. (Check all that apply.) Multiple select question. a contingent fee is received regardless of the outcome of the service A contingent fee is conditioned on the outcome of the service a referral fee is typically paid to the CPA by the client for referring a service of the client to another party a commission is typically paid to the CPA for recommending a product of another party to the client the commission is received from an investment company whether or not the client purchases the product

A contingent fee is conditioned on the outcome of the service a referral fee is typically paid to the CPA by the client for referring a service of the client to another party a commission is typically paid to the CPA for recommending a product of another party to the client

The SEC's concerns about the relationships between EY and client personnel include which of the following? (Check all that apply.) Multiple select question. A reasonable observer would conclude that EY was closely identified in fact and appearance with clients. The firm disclosed confidential client information. Clients control the final opinion issued by EY Familiarity threats to independence

A reasonable observer would conclude that EY was closely identified in fact and appearance with clients. Familiarity threats to independence

The model of ethics standards for CPAs in the United States comes from the ____________ Code of Professional Conduct.

AICPA

The sources of rules that should guide ethical behavior of CPAs include which of the following? (Check all that apply.) Multiple select question. Voluntary organizations Philosophical reasoning methods AICPA Code of Conduct State CPA societies State board of accountancy regulations

AICPA Code of Conduct State CPA societies State board of accountancy regulations

The rule that may hold CPAs accountable for personal and professional actions is the_______ _________ Rule. (Enter one word per blank.)

Acts discreditable

Which of the following is considered an act discreditable? Multiple choice question. Advertising misleading accreditation Advertising CPA certification Advertising relevant experience

Advertising misleading accreditation

.A CPA is prohibited from receiving a contingent fee from a client when also performing which of the following? (Check all that apply.) Multiple select question. An audit or review of financial statements A compilation of financial statements that are prepared for the client A compilation of financial statements when there is third-party reliance and the lack of independence is not disclosed Nonattest services An examination of prospective financial information

An audit or review of financial statements A compilation of financial statements when there is third-party reliance and the lack of independence is not disclosed An examination of prospective financial information

.A CPA is prohibited from receiving a contingent fee from a client when also performing which of the following? (Check all that apply.) Multiple select question. Nonattest services An examination of prospective financial information A compilation of financial statements that are prepared for the client An audit or review of financial statements A compilation of financial statements when there is third-party reliance and the lack of independence is not disclosed

An examination of prospective financial information An audit or review of financial statements A compilation of financial statements when there is third-party reliance and the lack of independence is not disclosed

Which of the following nonattest service is prohibited for attest clients? Multiple choice question. Assurance services Tax services Personal financial planning services Appraisal or valuation services

Appraisal or valuation services

The public watchdog function requires that accountants do which of the following: Demonstrate complete fidelity to the public trust. Maintain ultimate allegiance to the corporation's shareholders and creditors. Act out of allegiance to one's employer at all times. Maintain total independence from the client at all times. Be loyal to one's supervisor.

Demonstrate complete fidelity to the public trust. Maintain ultimate allegiance to the corporation's shareholders and creditors. Maintain total independence from the client at all times.

Unlike the acceptance of a contingent fee, a CPA who receives a commission or referral fee must Blank______. Multiple choice question. maintain objectivity when providing attest services for a client to whom a recommendation of a product or service was made Disclose permitted contingent fees to any party to whom the service is provided disclose permitted commissions and referral fees to any party to whom the recommendation is made receive the approval of the client to accept the fee

Disclose permitted contingent fees to any party to whom the service is provided

Which of the following relate to the professional standards of a tax accountant? (Check all that apply.) Multiple select question. Act objectively and only in the client's interests Exercise due care Act honestly Eliminate threats to independence Act as an advocate for his/her client

Exercise due care Act honestly Act as an advocate for his/her client

CPAs may be exposed to disciplinary action when engaged in which of the following acts discreditable? (Check all that apply.) Multiple select question. Internet marketing of professional services Failure to follow all relevant rules and regulations pertaining to government audits Retaliation when the CPA is a victim of discrimination or harassment Negligence in the preparation of financial statements or records Failure to file personal tax returns or pay tax liability

Failure to follow all relevant rules and regulations pertaining to government audits Negligence in the preparation of financial statements or records Failure to file personal tax returns or pay tax liability

28.Which of the following nonattest services are prohibited for attest clients under SOX? (Check all that apply.) Multiple select question. Financial information systems design and installation Internal audit outsourcing services Tax services Actuarial services Assurance services and other attest services

Financial information systems design and installation Internal audit outsourcing services Actuarial services

How individuals should bring their concerns to superiors within the organization and how possible objections can effectively be counteracted are addressed by the Blank______. Multiple choice question. Giving Voice to Values methodology Undue Influence methodology Subordination of Judgment safeguard Conflict of Interest safeguard

Giving Voice to Values methodology

Which of the following are included in the conceptual framework for CPAs in business? (Select all that apply.) Multiple select question. Independence in appearance Integrity Attest Objectivity Independence in fact

Integrity Objectivity

Ethical values as well as one's knowledge of the accounting issues in question influence the professional _________of accountants.

Judgement

The process of reaching a decision or drawing a conclusion where there are a number of possible alternative solutions is referred to as

Judgement

The SEC investigated Scott London's dealings with Brian Shaw because Blank______. (Check all that apply.) Multiple select question. London benefited financially from his leak of confidential information to Shaw Shaw received cash and a Rolex watch from London because of the tip London leaked confidential information of two KPMG clients to Shaw Shaw leaked information about the quarterly earnings information to London

London benefited financially from his leak of confidential information to Shaw London leaked confidential information of two KPMG clients to Shaw

Multiple Select Question Select all that apply During the period of an attest engagement, a CPA can perform nonattest services for an audit client without impairing independence when the client does which of the following? (Check all that apply.) Multiple select question. Allows the CPA to make some management decisions Allows the CPA to make all judgments related to the services provided Makes all management decisions and performs all management functions Designates an individual with the necessary abilities to oversee the services Evaluates the adequacy and results of the services performed

Makes all management decisions and performs all management functions Designates an individual with the necessary abilities to oversee the services Evaluates the adequacy and results of the services performed

Which threat to independence occurs when a CPA performs duties that should be completed by company executives? Multiple choice question. Management participation threat Undue influence threat Financial self-interest threat Familiarity threat

Management participation threat

Which of the following are sections in the AICPA Revised Code of Professional Conduct? (Select all that apply.) Multiple select question. Members in tax services Members in business Members in private practice Members in public practice Members in audit

Members in business Members in public practice

What is at the center of the KPMG Professional Judgment Framework? Multiple choice question. Ethical intent Mindset Objectives Conclusions Independence

Mindset

The elements of a tax return position include which of the following? (Check all that apply.) Multiple select question. Position about which a CPA has knowledge of all material facts Reflected on a tax return on which the CPA has specifically advised a taxpayer The defense taken for the tax position Informing the tax authority of the tax return position

Position about which a CPA has knowledge of all material facts Reflected on a tax return on which the CPA has specifically advised a taxpayer

Applying ethical reasoning to identify shareholder interests and the effect of actions on shareholders is inconsistent with which cognitive judgment trap? Multiple choice question. Confirmation tendency Groupthink Rush to judgment Judgment triggers Availability tendency

Rush to judgment

Which independence threat occurred when PwC used their decision-making authority in the design and implementation of software relating to an audit client's financial reporting? Multiple choice question. Undue influence threat Self-review threat Self-interest threat Familiarity threat

Self-review threat

The strategy used by a taxpayer to lower their tax bill by structuring transactions to obtain the largest tax benefits, this is called: Multiple choice question. Tax evasion Tax avoidance

Tax avoidance

A fraudulent intent for reporting different amounts on a corporation's return and amounts reported on its financial statements is a potential example of: Multiple choice question. Tax avoidance Tax evasion

Tax evasion

Unless prohibited by law, a professional responsibility exists to disclose confidential information under which of the following conditions? (Select all that apply.) Multiple select question. To respond to any inquiry made by the Professional Ethics Division or trial board of the AICPA To protect the CPA's professional interests in legal proceedings To obtain employment with a supplier of the client To report questionable accounting to the complaint hotline To obtain personal financing through a company lender

To respond to any inquiry made by the Professional Ethics Division or trial board of the AICPA To protect the CPA's professional interests in legal proceedings To report questionable accounting to the complaint hotline

The SEC's concerns related to when EY partners violated rules that ensure objectivity and impartiality during audits included which of the following? (Check all that apply.) Multiple select question. Disclosure of confidential information Travel and entertainment expenses to socialize with clients Clients and EY worked together to manipulate earnings Personal relationships that may impair judgment

Travel and entertainment expenses to socialize with clients Personal relationships that may impair judgment

True or false: Audit independence will be impaired when nonattest services are provided for an audit client unless management accepts responsibility for the results of the services. True false question. True False

True

True or false: Independence rules may extend to certain family members of the CPA. True false question. True False

True

Which threat to independence occurs when a member of management attempts to coerce the CPA? Multiple choice question. Undue influence threat Familiarity threat Management participation threat Financial self-interest threat

Undue influence threat

In which situation would marketing accounting services be considered an act discreditable? Multiple choice question. When promotional materials are informative When an accountant overstates his/her experience When an accountant claims they are a CPA when they are not When promotional materials are accurate

When an accountant claims they are a CPA when they are not

each type of document prepared by the member/CPA with the correct description

Work product=Deliverables required by the engagement Working papers=Documents prepared solely for purposes of the engagement Member-prepared records=Records generated by the member in the engagement

A loan from a financial institution client might impair audit independence when Blank______. (Check all that apply.) Multiple select question. a member of the audit engagement team has the outstanding loan obligation with an officer of the client the loan obligation is to an individual owning the client's outstanding equity securities a member of the audit engagement team has the outstanding loan obligation with the client entity the loan obligation is for an automobile purchased by the auditor

a member of the audit engagement team has the outstanding loan obligation with an officer of the client a member of the audit engagement team has the outstanding loan obligation with the client entity

The SEC was concerned about the relationship between EY and PeopleSoft because Blank______. Multiple choice question. EY prepared the financial statements for PeopleSoft a reasonable observer would conclude that EY was closely identified in fact and appearance with PeopleSoft EY created aggressive tax shelters for PeopleSoft and did not properly disclose the risks for them

a reasonable observer would conclude that EY was closely identified in fact and appearance with PeopleSoft

The SEC was concerned about the relationship between EY and PeopleSoft because Blank______. (Check all that apply.) Multiple select question. a symbiotic relationship existed between EY and PeopleSoft PeopleSoft was able to control the final opinion issued by EY a mutuality of interests in the EY/GEMS partnership the firm disclosed confidential client information

a symbiotic relationship existed between EY and PeopleSoft a mutuality of interests in the EY/GEMS partnership

Member (CPA)-prepared records include Blank______. Multiple choice question. hard-copy or electronic reproductions of client records records provided to the CPA by or on behalf of the client supporting schedules and documents that are proposed or prepared by the client as part of the engagement adjusting, closing, combining, or consolidated journal entries

adjusting, closing, combining, or consolidated journal entries

When a CPA makes a whistleblowing charge against the employer under Sarbanes-Oxley or Dodd-Frank, a(n) Blank______ threat arises. Multiple choice question. self interest undue influence advocacy adverse interest Familiarity

adverse interest

.Circular 230, Regulations Governing Practice Before the Internal Revenue Service, requires tax practitioners to Multiple choice question. advise the client promptly of any noncompliance, error, or omission and its consequences promptly correct issues of noncompliance, error, or omission in a tax return

advise the client promptly of any noncompliance, error, or omission and its consequences

Safeguards implemented by the attest client include Blank______. (Check all that apply.) Multiple select question. peer review an ethical tone at the top external review by an audit firm of its quality control system an active audit committee a commitment to fair financial reporting

an ethical tone at the top an active audit committee a commitment to fair financial reporting

In developing a tax return position, a CPA should Blank______. Multiple choice question. make sure the position would be accepted in a court of law apply the good faith belief standard adopt the reasonable basis position apply the realistic possibility of success standard

apply the realistic possibility of success standard

Examples of member's working papers include Blank______. (Check all that apply.) Multiple select question. electronic copies of client records audit programs statistical sampling analyses tax returns analytical review schedule

audit programs statistical sampling analyses analytical review schedule

Examples of member's working papers include Blank______. (Check all that apply.) Multiple select question. electronic copies of client records audit programs statistical sampling analyses tax returns analytical review schedules

audit programs statistical sampling analyses analytical review schedules

The independent auditor's public responsibility underlies its Blank ______. (Check all that apply.) Multiple select question. certification of public reports allegiance to creditors and shareholders fidelity to the public trust responsibility to the client responsibility to the audit firm

certification of public reports allegiance to creditors and shareholders fidelity to the public trust

Multiple Choice Question When state board rules differ from those of the AICPA with respect to withholding client records pending fee payment, the licensed CPA is expected to Blank ______. Multiple choice question. comply with the state board's rules withhold client records pending fee payment comply with AICPA rules comply with either the state board or AICPA rules

comply with the state board's rules

The Giving Voice to Values methodology relates to the conceptual framework for CPAs in business with the goal of Blank______. Multiple choice question. avoiding conflicts of interest maintaining independence convincing others of the most ethical action identifying discreditable acts

convincing others of the most ethical action

February, 2019, the SEC announced that Deloitte Touche Tohmatsu LLC (Deloitte Japan) will pay $2 million to settle charges of independence violations for issuing audit reports for an audit client when: Multiple choice question. insider trading violations dozens of its employees maintained bank accounts with the client's subsidiary partners had personal relationships with company management

dozens of its employees maintained bank accounts with the client's subsidiary

The General Standards Rule calls for Blank______. (Select all that apply.) Multiple select question. due care objectivity gathering all data Competence

due care Competence

The UK Competition and Markets Authority, issued a report on April 18, 2019, that recommends: Multiple choice question. new certification guidelines for CPAs increased internal controls at all public companies an overhaul of the auditing competence rules operational split of audit and nonaudit services

operational split of audit and nonaudit services

With respect to prospective and completed transactions, tax planning includes recommending Blank______. (Check all that apply.) Multiple select question. or expressing an opinion in written or oral form on a tax return position a position that reflects favorable treatment for the taxpayer or expressing an opinion in written or oral form on a specific tax plan developed positions that have a realistic possibility of success

or expressing an opinion in written or oral form on a tax return position or expressing an opinion in written or oral form on a specific tax plan developed

The independence rules apply to close relatives of the CPA who Blank______. (Check all that apply.) Multiple select question. own a financial interest in the client that is material to their net worth and is known by the CPA hold a key position with the client that enables them to exercise significant influence over the client. also qualify as an immediate family member own a financial interest in the client that is material to their net worth

own a financial interest in the client that is material to their net worth and is known by the CPA hold a key position with the client that enables them to exercise significant influence over the client.

A situation may cause the SEC to determine that auditor independence is impaired when the situation Blank______. (Check all that apply.) Multiple select question. places the accountant in a position of being an advocate for the client creates safeguards to mitigate threats to independence creates a mutual or conflicting interest between the CPA and the audit client prevents the accountant from rendering an opinion on the financial statements results in the accountant acting as management or an employee of the audit client places the accountant in the position of auditing his own work

places the accountant in a position of being an advocate for the client creates a mutual or conflicting interest between the CPA and the audit client results in the accountant acting as management or an employee of the audit client places the accountant in the position of auditing his own work

A self-review threat occurs when a CPA Blank______. Multiple choice question. is threatened by a client because of a disagreement on a matter pertaining to the financial statements reviews her own audit work for a client prepares source documents that are used to generate the client's financial statements evaluates internal controls

prepares source documents that are used to generate the client's financial statements

When a CPA assesses whether an ethical conflict exists, they should assess (check all that apply) Multiple select question. relevant facts cost to investigate applicable laws established internal procedures

relevant facts applicable laws established internal procedures

With regard to a tax return position, a CPA should should advise a taxpayer of Blank______. Multiple choice question. penalties imposed by the taxing authority recent tax court rulings on similar tax positions the CPA's ethical obligations when adopting a tax return position relevant tax return disclosure responsibilities

relevant tax return disclosure responsibilities

Rule 1.700.001 provides that a CPA can divulge confidential client information without violating the rule in order to Blank______. (Check all that apply.) Multiple select question. provide the information to a successor auditor support the CPA's defense in a disciplinary investigation respond to a validly issued subpoena or summons enable an inspection of the CPA's professional practice by the PCAOB adhere to applicable laws and regulations participate in insider trading

support the CPA's defense in a disciplinary investigation respond to a validly issued subpoena or summons enable an inspection of the CPA's professional practice by the PCAOB adhere to applicable laws and regulations

Recommending or expressing an opinion on a tax return position that relates to prospective or completed transactions is referred to as _______ _______. (Enter one word per blank.)

tax planning

Contingent fees for tax services provided to an audit client can be accepted Blank______. (Check all that apply.) Multiple select question. when the CPA and client agree to a stipulated percentage of any tax savings based on the outcome of the tax advice when filing an amended tax return or claim for tax refund greater than $1 million after the tax return has been reviewed by a taxing authority the CPA reasonably expects a claim for tax refund would be subject to review by a taxing authority

when filing an amended tax return or claim for tax refund greater than $1 million the CPA reasonably expects a claim for tax refund would be subject to review by a taxing authority

Multiple Choice Question A self-interest threat exists for a CPA in business Blank______. Multiple choice question. when the CPA promotes the employing organization's position to the point of objectivity being compromised when the CPA could benefit from a relationship with the employing organization when the CPA uses a close relative's company as a supplier to the employer when the CPA subordinates their judgment to that of a superior

when the CPA could benefit from a relationship with the employing organization

.The AICPA Revised Code applies to CPAs in the performance of all professional services except Blank______. Multiple choice question. when the client interest is sacrificed when external pressures exist when internal pressures exist when the wording of the rule indicates otherwise

when the wording of the rule indicates otherwise