In which circumstance is a CPA firm's independence most likely to be impaired? a. An individual on the audit has a close relative who is a receptionist for the client. b. The father of the audit senior holds a material financial interest in the client of which the senior is unaware. c. The spouse of a staff member on the audit has an immaterial common stock investment in the audit client. d. The partner in charge of the office's compensation is affected by office profitability, a portion of which arises from this audit.

In which circumstance is a CPA firm's
independence most likely to be impaired?
a. An individual on the audit has a close
relative who is a receptionist for the
client.
b. The father of the audit senior holds a
material financial interest in the client of
which the senior is unaware.
c. The spouse of a staff member on the
audit has an immaterial common
stock investment in the audit client.
d. The partner in charge of the office's
compensation is affected by office
profitability, a portion of which arises
from this audit.
by

1 Answer

Answer :

The spouse of a staff member on the
audit has an immaterial common
stock investment in the audit client.
by

Related questions

In which circumstance is a CPA firm's independence most likely to be impaired? a. An individual on the audit has a close relative who is a receptionist for the client. b. The father of the audit senior holds a material financial interest in the client of which the senior is unaware. c. The spouse of a staff member on the audit has an immaterial common stock investment in the audit client. d. The partner in charge of the office's compensation is affected by office profitability, a portion of which arises from this audit

Description : In which circumstance is a CPA firm's independence most likely to be impaired? a. An individual on the audit has a close relative who is a receptionist for the client. b. The father of ... of the office's compensation is affected by office profitability, a portion of which arises from this audit

Last Answer : The spouse of a staff member on the audit has an immaterial common stock investment in the audit client

Which of the following partners is least likely to be considered a "covered member" for purposes of rendering assurance service to of Company A, a nonaudit client, performed by the head office of a national CPA firm? a. The partner in charge of the Davao office. b. The partner in charge of the entire CPA firm. c. A partner in the Cebu office of the CPA firm who maintains a small, immaterial investment in Company A. d. A partner in the Davao office who worked on the Company A for a different assurance engagement in previous years, but currently has no responsibilities with respect to the engagement

Description : Which of the following partners is least likely to be considered a "covered member" for purposes of rendering assurance service to of Company A, a nonaudit client, performed by the ... assurance engagement in previous years, but currently has no responsibilities with respect to the engagement

Last Answer : A partner in the Cebu office of the CPA firm who maintains a small, immaterial investment in Company A.

Which of the following partners is least likely to be considered a "covered member" for purposes of rendering assurance service to of Company A, a nonaudit client, performed by the head office of a national CPA firm? a. The partner in charge of the Davao office. b. The partner in charge of the entire CPA firm. c. A partner in the Cebu office of the CPA firm who maintains a small, immaterial investment in Company A. d. A partner in the Davao office who worked on the Company A for a different assurance engagement in previous years, but currently has no responsibilities with respect to the engagement

Description : Which of the following partners is least likely to be considered a "covered member" for purposes of rendering assurance service to of Company A, a nonaudit client, performed by the ... assurance engagement in previous years, but currently has no responsibilities with respect to the engagement

Last Answer : A partner in the Cebu office of the CPA firm who maintains a small, immaterial investment in Company A.

Which of the following is not likely a threat to independence? a. Acting as an advocate on behalf of an assurance client in litigation or in resolving disputes with third parties. b. Long association of a senior member of the assurance team with the assurance client. c. Threat of replacement over a disagreement with the application of an accounting principle. d. Owning immaterial indirect financial interest in an audit client.

Description : Which of the following is not likely a threat to independence? a. Acting as an advocate on behalf of an assurance client in litigation or in resolving disputes with third parties. b. ... the application of an accounting principle. d. Owning immaterial indirect financial interest in an audit client.

Last Answer : Owning immaterial indirect financial interest in an audit client.

Which of the following is not likely a threat to independence? a. Acting as an advocate on behalf of an assurance client in litigation or in resolving disputes with third parties. b. Long association of a senior member of the assurance team with the assurance client. c. Threat of replacement over a disagreement with the application of an accounting principle. d. Owning immaterial indirect financial interest in an audit client.

Description : Which of the following is not likely a threat to independence? a. Acting as an advocate on behalf of an assurance client in litigation or in resolving disputes with third parties. b. ... the application of an accounting principle. d. Owning immaterial indirect financial interest in an audit client.

Last Answer : Owning immaterial indirect financial interest in an audit client.

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

Description : 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- ... upon the result of an administrative proceeding. d. Having an immaterial loan to the president of an audit

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

Which of the following is least likely considered a financial statement audit risk factor? a. Management operating and financing decisions are dominated by top management. b. A new client with no prior audit history. c. Rate of change in the entity's industry is rapid. Profitability of the entity relative to its industry is inconsistent.d

Description : Which of the following is least likely considered a financial statement audit risk factor? a. Management operating and financing decisions are dominated by top management. b. A new client with no ... entity's industry is rapid d. Profitability of the entity relative to its industry is inconsistent.

Last Answer : Management operating and financing decisions are dominated by top management.

A violation of the ethical standards would most likely have occurred when a CPA a. Made arrangement with a bank to collect notes issued by a client in payment of fees due. b. Joined an accounting firm made up of three non-CPA practitioners. c. Issued an unqualified opinion on the 2006 financial statements when fees for the 2005 audit were unpaid. d. Purchased a bookkeeping firm's practice of monthly write-ups for a percentage of fees received over a three-year period

Description : A violation of the ethical standards would most likely have occurred when a CPA a. Made arrangement with a bank to collect notes issued by a client in payment of fees due. b. Joined an ... bookkeeping firm's practice of monthly write-ups for a percentage of fees received over a three-year period

Last Answer : Issued an unqualified opinion on the 2006 financial statements when fees for the 2005 audit were unpaid

A violation of the ethical standards would most likely have occurred when a CPA a. Made arrangement with a bank to collect notes issued by a client in payment of fees due. b. Joined an accounting firm made up of three non-CPA practitioners. c. Issued an unqualified opinion on the 2010 financial statements when fees for the 2009 audit were unpaid. d. Purchased a bookkeeping firm's practice of monthly write-ups for a percentage of fees received over a three-year period.

Description : A violation of the ethical standards would most likely have occurred when a CPA a. Made arrangement with a bank to collect notes issued by a client in payment of fees due. b. Joined an accounting ... firm's practice of monthly write-ups for a percentage of fees received over a three-year period.

Last Answer : Issued an unqualified opinion on the 2010 financial statements when fees for the 2009 audit were unpaid

A CPA is criminally liable if he a. Refuses to turn over the schedules or working papers prepared by the client staff to the client. b. Performs an audit in a negligent manner. c. Intentionally allows an omission of a material fact required to be stated in a financial statement. d. Was not able to submit the audited financial statements on time

Description : A CPA is criminally liable if he a. Refuses to turn over the schedules or working papers prepared by the client staff to the client. b. Performs an audit in a negligent manner. c. Intentionally ... be stated in a financial statement. d. Was not able to submit the audited financial statements on time

Last Answer : Intentionally allows an omission of a material fact required to be stated in a financial statement

A CPA is criminally liable if he a. Refuses to turn over the schedules or working papers prepared by the client staff to the client. b. Performs an audit in a negligent manner. c. Intentionally allows an omission of a material fact required to be stated in a financial statement. d. Was not able to submit the audited financial statements on time

Description : A CPA is criminally liable if he a. Refuses to turn over the schedules or working papers prepared by the client staff to the client. b. Performs an audit in a negligent manner. c. Intentionally ... be stated in a financial statement. d. Was not able to submit the audited financial statements on time

Last Answer : Intentionally allows an omission of a material fact required to be stated in a financial statement.

The adequacy of disclosures in the financial statements and footnotes is the primary responsibility of the: a. Client b. Auditor in charge of field work c. Partner assigned to engagement d. Staff member who drafted the statements

Description : The adequacy of disclosures in the financial statements and footnotes is the primary responsibility of the: a. Client b. Auditor in charge of field work c. Partner assigned to engagement d. Staff member who drafted the statements

Last Answer : Client

To emphasize auditor independence from management, many corporations follow the practice of a. Appointing a partner of the CPA firm conducting the examination to the corporation's audit committee. b. Establishing a policy of discouraging social contact between employees of the corporation and the staff of the independent auditor. c. Requesting that a representative of the independent auditor be on hand at the annual stockholders' meeting. d. Having the independent auditor report to an audit committee of outside members of the board of directors

Description : To emphasize auditor independence from management, many corporations follow the practice of a. Appointing a partner of the CPA firm conducting the examination to the corporation's audit committee. b ... the independent auditor report to an audit committee of outside members of the board of directors

Last Answer : Having the independent auditor report to an audit committee of outside members of the board of directors

Under the Code of Ethics, a CPA may not: a. Perform bookkeeping services for an audit client. b. Perform advisory services for an audit client. c. Have any direct financial interest in a client during the period covered by the financial statements. d. Having any joint, closely held investments with a principal stockholder of an audit client during the period of audit engagement which is not material in relation to his ne

Description : Under the Code of Ethics, a CPA may not: a. Perform bookkeeping services for an audit client. b. Perform advisory services for an audit client. c. Have any direct financial interest in a client ... of an audit client during the period of audit engagement which is not material in relation to his ne

Last Answer : Have any direct financial interest in a client during the period covered by the financial statements.

It involves a study or evaluation of the quality of audit of financial statements through a review of quality control measures established by on CPA firms and individual CPAs in public practice to ensure compliance with accounting and auditing standards and practices a. External audit b. Compliance audit c. Peer review d. Quality review

Description : It involves a study or evaluation of the quality of audit of financial statements through a review of quality control measures established by on CPA firms and individual CPAs in public practice to ... standards and practices a. External audit b. Compliance audit c. Peer review d. Quality review

Last Answer : Quality review

.In which of the following instances would the independence of the CPA not be considered to be impaired? The CPA has been retained as the auditor of a brokerage firm a. Which owes the CPA audit fees for more than one year. b. In which the CPA has a large active margin account. c. In which the CPA's brother is the controller. d. Which owes the CPA audit fees for services in the current year and has just filed a petition for bankruptcy

Description : .In which of the following instances would the independence of the CPA not be considered to be impaired? The CPA has been retained as the auditor of a brokerage firm a. Which owes the CPA audit ... owes the CPA audit fees for services in the current year and has just filed a petition for bankruptcy

Last Answer : Which owes the CPA audit fees for services in the current year and has just filed a petition for bankruptcy

In which of the following instances would the independence of the CPA not be considered to be impaired? The CPA has been retained as the auditor of a brokerage firm a. Which owes the CPA audit fees for more than one year. b. In which the CPA has a large active margin account. c. In which the CPA’s brother is the controller. d. Which owes the CPA audit fees for the current year services and jusfiled a petition for bankruptcyt

Description : In which of the following instances would the independence of the CPA not be considered to be impaired? The CPA has been retained as the auditor of a brokerage firm a. Which owes the CPA audit ... . Which owes the CPA audit fees for the current year services and just filed a petition for bankruptcy

Last Answer : Which owes the CPA audit fees for the current year services and justfiled a petition for bankruptcy

The Philippine Accountancy Act of 2004 provides that all Working papers made during an audit shall be the property of the auditor. These working papers shall include the following, except: a. Working papers prepared by the CPA and his staff. b. Analysis and schedule prepared and submitted to the auditor by his client's staff. c. Excerpts or copies of documents furnished to the auditor. d. Any report submitted by the auditor to his client.

Description : The Philippine Accountancy Act of 2004 provides that all Working papers made during an audit shall be the property of the auditor. These working papers shall include the following, except: a. Working ... of documents furnished to the auditor. d. Any report submitted by the auditor to his client.

Last Answer : Any report submitted by the auditor to his client.

Which of the following activities is not prohibited for the CPA firm's attestation service clients? a. Referral fees on audit jobs. b. Competitive bidding on audit jobs. c. Contingent fees on audit jobs. d. Commissions for obtaining client services on audit jobs

Description : Which of the following activities is not prohibited for the CPA firm's attestation service clients? a. Referral fees on audit jobs. b. Competitive bidding on audit jobs. c. Contingent fees on audit jobs. d. Commissions for obtaining client services on audit jobs

Last Answer : Competitive bidding on audit jobs

Which of the following activities is not prohibited for the CPA firm's attestation service clients? a. Competitive bidding on audit jobs. b. Contingent fees on audit jobs. c. Commissions for obtaining client services on audit jobs. d. Referral fees on audit jobs.

Description : Which of the following activities is not prohibited for the CPA firm's attestation service clients? a. Competitive bidding on audit jobs. b. Contingent fees on audit jobs. c. Commissions for obtaining client services on audit jobs. d. Referral fees on audit jobs.

Last Answer : Competitive bidding on audit jobs

When determining whether independence is impaired because of an ownership interest in client company,' materiality will affect whether ownership is a violation of rule of independence a. In all circumstances. b. Only for direct ownership. c. Only for indirect ownership. d. Under no circumstances.

Description : When determining whether independence is impaired because of an ownership interest in client company,' materiality will affect whether ownership is a violation of rule of independence a. In all circumstances. b. Only for direct ownership. c. Only for indirect ownership. d. Under no circumstances.

Last Answer : Only for indirect ownership

When determining whether independence is impaired because of an ownership interest in client company, materiality will affect whether ownership is a violation of rule of independence a. In all circumstances. b. Only for direct ownership. c. Only for indirect ownership. d. Under no circumstances.

Description : When determining whether independence is impaired because of an ownership interest in client company, materiality will affect whether ownership is a violation of rule of independence a. In all circumstances. b. Only for direct ownership. c. Only for indirect ownership. d. Under no circumstances.

Last Answer : Only for indirect ownership

A director, an officer or an employee of the assurance client in a position to exert direct and significant influence over the subject matter of the assurance engagement has been a member of the assurance team or partner of the firm. This situation least likely create a. Self-interest threat. b. Advocacy threat. c. Intimidation threat. d. Familiarity threat

Description : A director, an officer or an employee of the assurance client in a position to exert direct and significant influence over the subject matter of the assurance engagement has been a member of the ... create a. Self-interest threat. b. Advocacy threat. c. Intimidation threat. d. Familiarity threat

Last Answer : Advocacy threat.

Which of the following will impair the independence of a CPA in public practice? a. He has his name and address listed on a one-page section of the telephone book. b. He obtained a loan from a bank under the normal lending procedures, terms and requirements of that bank. c. He holds one share of the client's capital stock. d. He failed to disclose a client's departure from GAAP.

Description : Which of the following will impair the independence of a CPA in public practice? a. He has his name and address listed on a one-page section of the telephone book. b. He obtained a loan from a bank ... one share of the client's capital stock. d. He failed to disclose a client's departure from GAAP.

Last Answer : He holds one share of the client's capital stock.

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 significant interests in the affairs of an audit client. c. Possessing the ability to act with integrity and objectivity. d. Possessing the ability to act professionally and accordance with a professional code of ethics.

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.

Which of the following procedures would an auditor be most likely to perform in planning a financial statement audit? a. Reviewing investment transactions of the audit period to determine whether related parties were created. b. Performing analytical procedures to identify areas that may represent specific risks. c. Obtaining a written representation letter from the client to emphasize management's responsibilities. d. Reading the minutes of stockholder and director meetings to discover whether any unusual transactions have occurred.

Description : Which of the following procedures would an auditor be most likely to perform in planning a financial statement audit? a. Reviewing investment transactions of the audit period to determine ... the minutes of stockholder and director meetings to discover whether any unusual transactions have occurred.

Last Answer : Performing analytical procedures to identify areas that may represent specific risks.

Existing accountant, as defined in the Code of Ethics, means a. A professional accountant employed in industry, commerce, the public sector or education. b. Those persons who hold a valid certificate issued by the Board of Accountancy. c. A professional accountant in public practice currently holding an audit appointment or carrying out accounting, taxation, consulting or similar professional services for a client. d. A sole proprietor, or each partner or person occupying a position similar to that of a partner and each staff in a practice providing professional services

Description : Existing accountant, as defined in the Code of Ethics, means a. A professional accountant employed in industry, commerce, the public sector or education. b. Those persons who hold a valid ... a position similar to that of a partner and each staff in a practice providing professional services

Last Answer : A professional accountant in public practice currently holding an audit appointment or carrying out accounting, taxation, consulting or similar professional services for a client.

The criteria for evaluating quantitative information vary. For example, in the audit of historical financial statements by CPA firms, the criteria are usually: a. Generally accepted auditing standards. b. Acceptable financial reporting framework c. Regulations of the Securities and Exchange Commission d. Regulations of the Bureau of Internal Revenue

Description : The criteria for evaluating quantitative information vary. For example, in the audit of historical financial statements by CPA firms, the criteria are usually: a. Generally accepted auditing ... Regulations of the Securities and Exchange Commission d. Regulations of the Bureau of Internal Revenue

Last Answer : Acceptable financial reporting framework

The criteria for evaluating quantitative information vary. For example, in the case of an independent audit of financial statements by CPA firms, the criteria are usually the: a. Philippine Standards on Auditing b. Philippine Financial Reporting Standards c. National Internal Revenue Code d. Securities and Exchange Commission Regulations

Description : The criteria for evaluating quantitative information vary. For example, in the case of an independent audit of financial statements by CPA firms, the criteria are usually the: a. ... Financial Reporting Standards c. National Internal Revenue Code d. Securities and Exchange Commission Regulations

Last Answer : Philippine Financial Reporting Standards

An auditor who accepts an audit engagement and does not possess the industry expertise of the business entity, should a. Engage financial experts familiar with the nature of the business entity. b. Obtain a knowledge of matters that relates to the nature of the entity's business. c. Refer a substantial portion of the audit to another CPA who will act as the principal auditor. d. First inform management that an unqualified opinion cannot be issued

Description : An auditor who accepts an audit engagement and does not possess the industry expertise of the business entity, should a. Engage financial experts familiar with the nature of the business entity. ... as the principal auditor. d. First inform management that an unqualified opinion cannot be issued

Last Answer : Obtain a knowledge of matters that relates to the nature of the entity's business.

An auditor who accepts an audit engagement and does not possess the industry expertise of the business entity, should a. Engage, financial experts familiar with the nature of the business entity. b. Obtain a knowledge of matters that relates to the nature of the entity's business. c. Refer a substantial portion of the audit to another cpa who will act as the principal auditor. d. First inform management that an unqualified opinion cannot be issued

Description : An auditor who accepts an audit engagement and does not possess the industry expertise of the business entity, should a. Engage, financial experts familiar with the nature of the business entity. ... as the principal auditor. d. First inform management that an unqualified opinion cannot be issued

Last Answer : Obtain a knowledge of matters that relates to the nature of the entity's business.

The provision of services by a firm or network firm to an audit client that involve the design and implementation of financial information technology systems that are used to generate information forming part of a client's financial statements may most likely create a. Self-interest threat. b. Self-review threat. c. Intimidation threat. d. Familiarity threat

Description : The provision of services by a firm or network firm to an audit client that involve the design and implementation of financial information technology systems that are used to generate information forming ... Self-interest threat. b. Self-review threat. c. Intimidation threat. d. Familiarity threat

Last Answer : Self-review threat

A CPA firm is considered independent when it performs which of the following services for a publicly traded audit client? a. Serving as a member of the client’s board of directors. b. Accounting information system design and implementation. c. Tax return preparation as approved by the board of directors. d. Determining which accounting policies will be adopted by the client

Description : A CPA firm is considered independent when it performs which of the following services for a publicly traded audit client? a. Serving as a member of the client's board of directors. b. ... approved by the board of directors. d. Determining which accounting policies will be adopted by the client

Last Answer : Tax return preparation as approved by the board of directors.

A CPA firm is considered independent when it performs which of the following services for a publicly traded audit client? a. Serving as a member of the client’s board of directors. b. Accounting information system design and implementation. c. Tax return preparation as approved by the board of directors. d. Determining which accounting policies will be adopted by the client

Description : A CPA firm is considered independent when it performs which of the following services for a publicly traded audit client? a. Serving as a member of the client's board of directors. b. ... approved by the board of directors. d. Determining which accounting policies will be adopted by the client

Last Answer : Tax return preparation as approved by the board of directors.

A CPA firm is considered independent when it performs which of the following services for a publicly-traded audit client? a. Serving as a member of the client's board of directors. b. Determining which accounting policies will be adopted by the client. c. Accounting information system design and implementation. d. Tax return preparation as approved by the board of directors.

Description : A CPA firm is considered independent when it performs which of the following services for a publicly-traded audit client? a. Serving as a member of the client's board of directors. b. ... information system design and implementation. d. Tax return preparation as approved by the board of directors.

Last Answer : Tax return preparation as approved by the board of directors.

A CPA-lawyer, acting as a legal counsel to one of his audit client, is an example of a. Self-interest threat b. Self-review threat c. Advocacy threat d. Familiarity threa

Description : A CPA-lawyer, acting as a legal counsel to one of his audit client, is an example of a. Self-interest threat b. Self-review threat c. Advocacy threat d. Familiarity threa

Last Answer : Advocacy threat

A CPA-lawyer, acting as a legal counsel to one of his audit client, is an example of a. Advocacy threat b. Familiarity threac. Self-interest threat d. Self-review threatt

Description : A CPA-lawyer, acting as a legal counsel to one of his audit client, is an example of a. Advocacy threat b. Familiarity threat c. Self-interest threat d. Self-review threat

Last Answer : Advocacy threa

Which of the following statements is incorrect? a. CPAs lose their independence if they acquire any direct financial interest in a client. b. CPAs lose their independence if they have a material direct financial interest in a client. c. CPAs lose their independence if they acquire any indirect financial interest in a client. d. CPAs lose their independence if they acquire a material indirect financial interest in a client.

Description : Which of the following statements is incorrect? a. CPAs lose their independence if they acquire any direct financial interest in a client. b. CPAs lose their independence if they have a material ... d. CPAs lose their independence if they acquire a material indirect financial interest in a client.

Last Answer : CPAs lose their independence if they acquire any indirect financial interest in a client.

Which of the following statements is incorrect? a. CPAs lose their independence if they acquire any direct financial interest in a client. b. CPAs lose their independence if they acquire any indirect financial interest in a client. c. CPAs lose their independence if they acquire a material indirect financial interest in a client. d. CPAs lose their independence if they have a material direct financial interest in a client

Description : Which of the following statements is incorrect? a. CPAs lose their independence if they acquire any direct financial interest in a client. b. CPAs lose their independence if they acquire any indirect ... . d. CPAs lose their independence if they have a material direct financial interest in a client

Last Answer : CPAs lose their independence if they acquire any indirect financial interest in a client

.Prior to beginning the field work on a new audit engagement in which a CPA does not possess expertise in the industry in which the client operates, the CPA should a. Reduce audit risk by lowering the preliminary levels of materiality. b. Design special substantive tests to compensate for the lack of industry expertise. c. Engage financial experts familiar with the nature of the industry. d. Obtain a knowledge of matters that relates to the nature of the entity's business

Description : .Prior to beginning the field work on a new audit engagement in which a CPA does not possess expertise in the industry in which the client operates, the CPA should a. Reduce audit risk by lowering ... the industry. d. Obtain a knowledge of matters that relates to the nature of the entity's business

Last Answer : Obtain a knowledge of matters that relates to the nature of the entity's business

A CPA is conducting the first audit of a client’s financial statements. The CPA hopes to reduce the audit work by consulting with the predecessor auditor and reviewing the predecessor's working papers. This procedure is a. Acceptable if the CPA refers in the audit report to reliance upon the predecessor auditor's work. b. Required if the CPA is to render an unqualified opinion. c. Unacceptable because the CPA should bring an independent viewpoint to a new engagement. d. Acceptable if the client and the predecessor auditor agree to it.

Description : A CPA is conducting the first audit of a client's financial statements. The CPA hopes to reduce the audit work by consulting with the predecessor auditor and reviewing the predecessor's working papers. ... to a new engagement. d. Acceptable if the client and the predecessor auditor agree to it.

Last Answer : Acceptable if the client and the predecessor auditor agree to it.

A CPA should not submit unaudited financial statements of a non-public entity to a client or others unless, as a minimum, the CPA complies with the provisions applicable to a. Audit engagements. b. Review engagements. c. Assurance engagements. d. Compilation engagements.

Description : A CPA should not submit unaudited financial statements of a non-public entity to a client or others unless, as a minimum, the CPA complies with the provisions applicable to a. Audit engagements. b. Review engagements. c. Assurance engagements. d. Compilation engagements.

Last Answer : Compilation engagements.

In connection with the examination of financial statements, an independent auditor could be responsible for failure to detect a material fraud if a. Accountants performing important parts of the work failed to discover a close relationship between the treasurer and the cashier. b. The auditor planned the work in a hasty and inefficient manner. c. Statistical sampling techniques were not used on the audit engagement. d. The fraud was perpetrated by one client employee, who circumvented the existing internal control

Description : In connection with the examination of financial statements, an independent auditor could be responsible for failure to detect a material fraud if a. Accountants performing important parts of the ... . The fraud was perpetrated by one client employee, who circumvented the existing internal control

Last Answer : The auditor planned the work in a hasty and inefficient manner.

If a firm, or a network firm, has a direct financial interest in an audit client of the firm, the self-interest threat created would be so significant no safeguard could reduce the threat to an acceptable level. The action appropriate to permit the firm to perform the engagement would be to a. Dispose of the financial interest. b. Dispose of a sufficient amount of it so that the remaining interest is no longer material. c. Either a or b d. Neither a nor b

Description : If a firm, or a network firm, has a direct financial interest in an audit client of the firm, the self-interest threat created would be so significant no safeguard could reduce the threat to an acceptable ... that the remaining interest is no longer material. c. Either a or b d. Neither a nor b

Last Answer : Dispose of the financial interest

Which of the following has primary responsibility for the performance of an audit? a. The partner in charge of the engagement b. The senior assigned to the engagementc. The managing partner of the firmd. The manager assigned to theengagement

Description : Which of the following has primary responsibility for the performance of an audit? a. The partner in charge of the engagement b. The senior assigned to the engagement c. The managing partner of the firm d. The manager assigned to the engagement

Last Answer : The partner in charge of the engagement