Which of the following best describes due
care?
a. Reasonable infallibility
b. Tact in avoiding legal liability
c. Requisite skill and diligence
d. Freedom from undue influence

1 Answer

Answer :

Requisite skill and diligence

Related questions

Description : Which of the following best describes the primary purpose of audit procedures? a. To detect errors or fraud b. To comply with generally accounting principles c. To gather sufficient, appropriate evidence d. To verify the accuracy of account balances

Last Answer : To gather sufficient, appropriate evidence

Description : In performing a financial statement audit, which of the following would an auditor least likely consider? a. Internal control. b. Compliance with GAAP. c. Fairness of the financial statement amounts. d. Quality of management’s business decisions.

Last Answer : Quality of management’s business decisions.

Description : Management assertions are a. Stated in the footnotes to the financial statements. b. Provided to the auditor in the assertions letter, but are not disclosed in the financial ... the accounts in the financial statements. d. Explicitly expressed representations about the financial statements

Last Answer : Implied or express representations about the accounts in the financial statements.

Description : To raise the standards of the profession, the Philippine Accountancy Act of 2004 requires that the CPA profession be integrated under the rules to be established by a. The PICPA. b. The Board of Accountancy. c. The Professional Regulation Commission. d. The Government Association of CPAs.

Last Answer : The Professional Regulation Commission

Description : Which of the following is not one of the concepts in the framework of auditing theory? a. Evidence b. Ethical conduct c. Fair presentation d. Conflict of interest

Last Answer : Conflict of interest

Description : It is essential that users regard CPA firms as: a. Competent. b. Unbiased. c. Technically proficient. d. All of the above

Last Answer : All of the above

Description : Which of the following methods is most commonly used to reduce information risk? a. Allow users to verify information. b. Allow all users to prepare the statements. c. Users share information risk with management. d. Have the financial statements audited

Last Answer : Have the financial statements audited

Description : An audit designed to determine the extent to which the desired results of an activity established by the legislative or other authorizing body are being achieved. a. Economy audit b. Efficiency audit c. Program results audit d. Financial-related audit

Last Answer : Program results audit

Description : An audit of financial statements is conducted to determine if the a. Organization is operating efficiently and effectively b. Client's internal control is functioning as intended. c. ... d. Overall financial statements are stated in accordance with an identified financial reporting framework

Last Answer : Overall financial statements are stated in accordance with an identified financial reporting framework

Description : Users of financial statements demand independent audit because a. Users demand assurance that fraud does not exist. b. Management may not be objective in reporting. c. Users expect auditors to correct management errors. d. Management relies on the auditor to improve internal control.

Last Answer : Management may not be objective in reporting

Description : It refers to the attribute or quality of audit evidence. a. Sufficiency b. Relevance c. Reliability d. Appropriateness

Last Answer : Appropriateness

Description : On every audit engagement, the CPA should comply with applicable PSAs a. Without exception. b. Except in examinations that result in a qualified report. c. Except in examinations of ... financial statements. d. Except in circumstances where the CPA is associated with unaudited financial statements

Last Answer : Without exception

Description : The assumption underlying an audit of financial statements is that they will be used by a. Different groups for different purposes. b. The general public in making investment decisions. c ... dividends. d. The regulatory agencies to verify information that is relevant to their supervisory functions.

Last Answer : Different groups for different purposes.

Description : An auditor should not render a report on: a. Client internal control. b. Management performance. c. The achievability of forecasts. d. Quarterly financial information.

Last Answer : The achievability of forecasts.

Description : Independent auditing can best be described as a a. Subset or branch of accounting. b. Professional activity that measures and communicates financial accounting data. c. A discipline or ... of financial statements. d. Regulatory activity that prevents the issuance of improper financial information

Last Answer : A discipline or professional activity that attests to the fair presentation of financial statements.

Description : Which of the following engagements is covered by the Framework for Assurance Engagements? a. Consulting engagements b. Preparation of tax returns c. Independent financial statements audit d. Agreed-upon procedures

Last Answer : Independent financial statements audit

Description : The principle professional competence and due care imposes which of the following obligations on professional accountants? a. To maintain professional knowledge and skill at the level required to ensure that a ... , conflict of interest or undue influence of others. d. To be fair and truthful.

Last Answer : To maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service.

Description : How old is our little star?

Last Answer : Veeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee eeeeeeeeeeeeeeeeeeeeeeeeeeery old. Hearsay.

Description : What is catch 22 situation?

Last Answer : A catch 22 is when two things block each other, but if only one could be fixed, both will work. Eg. You call a cab to take you to an ATM to get cash. The cabbie won't take you without advance cash ... the ATM already, you could get cash to take a cab, but you are home, with no cash. You are stuck.

Description : What are your views on the 12/21/12 theory?

Last Answer : This sums it up for me.

Description : Are fringe theories, by definition, unpopular?

Last Answer : A fringe theory is one that goes against or is different from mainstream theories. Since it is outside the mainstream of thought, it makes sense that it would be less popular.

Description : Has there ever been a conspiracy theory which was proved true?

Last Answer : Watergate?

Description : The cross product of the vectors 3i + 4j – 5k and –i + j – 2k is, a) 3i – 11j + 7k b) -3i + 11j + 7k c) -3i – 11j – 7k d) -3i + 11j – 7k

Last Answer : Answer: b Explanation: Cross product of two vectors is, A X B = (a2*b3 – b2*a3)i – (a1*b3 – b1*a3)j + (a1*b2 – b1*a2)k. Using the formula, the answer can be calculated.

Description : When two vectors are perpendicular, their a) Dot product is zero b) Cross product is zero c) Both are zero d) Both are not necessarily zero

Last Answer : Answer: a Explanation: Dot product of two perpendicular vectors is given by A.B = |a||b|cos 90, which is zero. Thus, dot product is zero and vectors are perpendicular.

Description : “Cognitive theory” of learning was given by

Last Answer : Jean Piaget

Description : What is mesh in circuit theory?

Last Answer : A mesh is barrier made of conneticonstrands of metal fiber or other flexible or ductile materials

Description : The principle of Professional behavior requires a CPA to: a. Perform professional services with due care, competence and diligence. b. Be straightforward and honest in performing professional ... or influence of others to override objectivity or affect his professional or business judgments.

Last Answer : Act in a manner consistent with the good reputation of the profession and refrain from any conduct which might bring discredit to the profession

Description : The principle of professional behavior requires a CPA to a. Be straightforward and honest in performing professional services. b. Perform professional services with due care, competence and diligence. ... of the profession and refrain from any conduct which might bring discredit to the profession

Last Answer : Act in a manner consistent with the good reputation of the profession and refrain from any conduct which might bring discredit to the profession

Description : Autonomy in clinical studied is defined as a) Freedom, dignity and confidentiality of the subject; right to choose i.e. whether or not to participate in the trial or to continue with ... . d) Observance of fairness, honesty and impartiality in obtaining, analyzing & communicating the data.

Last Answer : a) Freedom, dignity and confidentiality of the subject; right to choose i.e. whether or not to participate in the trial or to continue with it.

Description : Undue influence can be presumed between A. Guardian and Ward B. Mother and Daughter C. Doctor and Patient D. All of the above

Last Answer : D. All of the above

Description : Sonia contracts with Anshul to buy a necklace, believing it is made of pearls whereas in fact it is made of imitation pearls of no value. Anshul knows that Sonia is mistaken and takes no steps ... the contract C. Sonia can cancel the contract alleging undue influence D. Sonia can claim damages

Last Answer : B. Sonia cannot cancel the contract

Description : What does Section 17 of the Indian Contract Act, define? A. Coercion B. Undue influence C. Fraud D. Mistake

Last Answer : C. Fraud

Description : Consent is free under section 14 if not caused by– A. coercion & undue influence B. fraud and misrepresentation C. mistake subject to the provisions of sections 20, 21 and 22 D. all of the above

Last Answer : D. all of the above

Description : Consent is free under section 14 if not caused by A. Coercion & undue influence B. Fraud and misrepresentation C. Mistake subject to the provisions of sections 20, 21 and 22 D. All the above

Last Answer : D. All the above

Description : Undue influence can be exercised only between the parties who are: A. Related to each other B. Not related to each other C. Friendly to each other

Last Answer : A. Related to each other

Description : The threat to commit suicide amounts to (a) Coercion (b) Undue influence (c) Misrepresentation (d) Fraud

Last Answer : (a) Coercion

Description : If a CPA recklessly abandons standards of due care and diligence while performing an audit, he or she may be held liable to unknown third parties for: a. Gross negligence. b. Fraudulent misconduct. c. Gross misconduct. d. Contributory negligence.

Last Answer : Gross negligence

Description : ________________ in the matter of infprmation security plays a big role in arease such as capital market. A. Due Care B. Due Diligence C. Prudence D. Awareness

Last Answer : B. Due Diligence

Description : Do you still believe in the infallibility of the Pope after he drops the F-bomb?

Last Answer : Why not? The claim of infallibilty depends only on people believing the claim and not on any rational job description. 199 cardinals vote, and the winner is proclaimed the new infallible one, no matter who wins the election.

Description : Competence as a certified public accountant includes all of the following except a. Consulting others if additional technical information is needed. b. Possessing the ability to supervise and ... technical qualifications to perform an engagement. d. Warranting the infallibility of the work performed

Last Answer : Warranting the infallibility of the work performed

Description : Scenario: You are on death row with your appetite in tact. What would you order for your final meal?

Last Answer : A whole Maine lobster with drawn butter, corn on the cob, sliced tomatoes. For dessert, a really good, dense new york cheesecake.

Last Answer : strategy , prudence , perception, etc.

Description : Which disease is caused from sexual con- tact?

Last Answer : Gonorrhoea

Description : A teacher commands prestige, authority esteem and respect. He should make use of it through suggestion. He should not try to command respect through Options: A) Scholarship B) Punishing And Creating Revolting Situation C) Experience D) Tact

Last Answer : B) Punishing And Creating Revolting Situation

Description : Which of the following most completely describes how independence has been defined by the CPA profession? a. Performing an audit from the viewpoint of the public. b. Avoiding the appearance of ... . d. Possessing the ability to act professionally and accordance with a professional code of ethics.

Last Answer : Possessing the ability to act with integrity and objectivity.

Description : Those profits which the person in wrongful possession of such property actually  received or might with ordinary diligence have received there from, together with  interest on such profits, but shall not include profits ... (a) Means profit (b) Interest (c) Principal sum (d) None of the above

Last Answer : (a) Means profit

Description : Jessie Cruz, CPA, forgot to test a client’s assessment of goodwill impairment during an audit. Such an act is probably an example of: a. Due diligence b. Reckless professional behavior c. Ordinary negligence d. Fraud

Last Answer : Ordinary negligence

Description : Jessie Cruz, CPA, forgot to test a client’s assessment of goodwill impairment during an audit. Such an act is probably an example of: a. Due diligence b. Reckless professional behavior c. Ordinary negligence d. Fraud

Last Answer : Ordinary negligence

Description : The auditor should not assume that management is dishonest, but the possibility of dishonesty must be considered." This is an example of a. Expectation gap. b. An attitude of professional skepticism. c. Due diligence. d. An ethical requirement

Last Answer : An attitude of professional skepticism.