No matter competent a CPA may be, his opinion on financial statements will be of little value to those who rely upon him unless he: a. Maintains his independence. b. Maintains professional competence. c. Maintains a program of continuing education. d. Serves his clients with professional concern.

No matter competent a CPA may be, his
opinion on financial statements will be of
little value to those who rely upon him
unless he:
a. Maintains his independence.
b. Maintains professional competence.
c. Maintains a program of continuing
education.
d. Serves his clients with professional
concern.
by

1 Answer

Answer :

Maintains his independence
by

Related questions

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Independent auditors cannot be totally independent a. Because they don’t audit financial statements b. Since they do not possess the CPA license c. As long as employer-employee relationship exists d. Unless their immediate supervisor is a CPA

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This fundamental principle requires a CPA not to use or disclose information acquired during the course of performing professional services without proper and specific authority. a. Objectivity. b. Professional Behavior. c. Professional Competence and Due care. d. Confidentiality

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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

Which of the following is true of the report based on agreed-upon-procedures? a. The report is restricted to those parties who have agreed to the procedures to be performed. b. The CPA provides the recipients of the report limited assurance as to reasonableness of the assertion(s) presented in the financial information. c. The report states that the auditor has not recognized any basis that requires revision of financial statements. d. The report should state that the procedures performed are limited to analytical procedures and inquiry

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Last Answer : The report is restricted to those parties who have agreed to the procedures to be performed

An auditor obtains an understanding of the entity and its environment in order to a. Make constructive suggestions concerning improvements to the client's internal control. b. Understand the events and transactions that may have an effect on the client's financial statements. c. Evaluate whether the aggregation of known misstatements causes the financial statements taken as a whole to be materially misstated. d. Develop an attitude of professional skepticism concerning management's financial statement assertion

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The concept of materiality would be least important to an auditor when considering the a. Decision whether to use positive or negative confirmations of accounts receivable. b. Adequacy of disclosure of a client's illegal act. c. Discovery of weaknesses in a client's internal control structure. d. Effects of a direct financial interest in the client upon the CPA's independence.

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Last Answer : Effects of a direct financial interest in the client upon the CPA's independence.

Which of the following is an indication of lack of objectivity of an auditor? a. The auditor believes that accounts receivable may not be collectible, but accepts management's opinion without an independent evaluation. b. In preparing client's tax return, the CPA encourages client to take a deduction which the CPA believes is valid, but for which there is some but not complete support. c. Both a and b above would be a violation d. Neither would be a violation

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Last Answer : The auditor believes that accounts receivable may not be collectible, but accepts management's opinion without an independent evaluation.

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Last Answer : The distribution of the report will be limited only to specified parties involved.

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Which of the following criteria is unique to the independent auditor's attest function? a. Independence. b. General competence. c. Due professional care. d. Familiarity with the particular industry of each client.

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Last Answer : Independence.

Which of the following is not an assurance that the auditors give to the parties who rely on the financial statements? a. Auditors give assurance that the financial statements are accurate. b. Auditors know how the amounts and disclosures in the financial statements were produced. c. Auditors gathered enough evidence to provide a reasonable basis for forming an opinion. d. If the evidence allows the auditors to doso, auditors give assurance in the form ofopinion, as to whether the financialstatements taken as a whole are fairlypresented in conformity with GAAP

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Last Answer : Auditors give assurance that the financial statements are accurate

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Last Answer : Appearance

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Last Answer : Appearance

Which of the following acts of the CPA would be most likely a violation of the Code of Ethics? a. Assisting a client in preparing a financial forecast. b. Acting as auditor of a non-charitable organization with audit client serving as president. c. Accepting a fee in a tax matter that is contingent upon the result of an administrative proceeding. d. Having an immaterial loan to the president of an audit

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Last Answer : Having an immaterial loan to the president of an audit

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Last Answer : Ordinary negligence

For which of the following services is a CPA professional not required to be independent? a. Tax returns preparation b. Audits of historical financial statements c. Review engagement d. Examination of a forecast

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Last Answer : Tax returns preparation

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Last Answer : All of the above

Which of the following is not required by PSA No. 315, "Consideration of Fraud in a Financial Statement Audit"? a. Conduct a continuing assessment of the risks of material misstatement due to fraud throughout the audit. b. Conduct a discussion by the audit team of the risks of material misstatement due to fraud. c. Conduct inquiries of the audit committee as to their views about the risks of fraud and their knowledge of any fraud or suspected fraud. d. Conduct the audit with professional skepticism, which includes an attitude that assumes balances are incorrect until verified by the audito

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Last Answer : The CPA’s conclusion provides a level of assurance about the subject matter.