Exam (elaborations)
AICPA Ethics 113 Final With 100% Correct And Verified Answers
- Course
- Institution
AICPA Ethics 113 Final With 100% Correct And Verified Answers
[Show more]
Content preview
AICPA Ethics 113 Final With 100% CorrectAnd Verified Answers
Any investment made by a covered member in an investment club
is considered an indirect financial interest. Therefore, if club
investments are made in clients, independence is impaired if the
investment is considered material. - Correct Answer-F
According to the ACIPA Code of Conduct of conduct, " a member
who performs auditing, review, compilation, management
consulting, tax, or other professional services must comply with
standards created by the SEC." - Correct Answer-F
The term immediate family member includes spouse, whether or
not dependent; spousal equivalent, whether or not dependent;
former spouse, if legally divorced; dependents, whether or not
related. - Correct Answer-F
"Covered persons" include partners, principals, shareholders, and
employees of the CPA firm who are on the audit engagement. -
Correct Answer-T
The term "immediate family" includes a parent or sibling. - Correct
Answer-F "immediate family" includes spouse, dependents.
An opinion based on an audit of financial statements is a widely
known form of attestation - Correct Answer-T
The Sarbanes-Oxley Act of 2002 limits the engagement of and
concurring audit partners on an engagement to four-year terms. -
Correct Answer-F 5 yrs
Vendarsol
,To be recognized as independent, the auditor must be free from
any obligation to or interest in the client, its management or its
owners - Correct Answer-T
A firm when acting as principal auditor is not required to confirm
the independence of another firm engaged to perform segments of
an engagement - Correct Answer-F
A covered member who is a limited partner in a partnership that
invests in a client has a direct financial interest in that client. -
Correct Answer-F indirect financial interest
Indirect financial interests include a financial interest in the client
held by a close relative of an individual participating in the
engagement. - Correct Answer-T
A member of the AICPA not in public practice need not comply
with Independence Rules of the AICPA's Rules of Professional
Conduct. - Correct Answer-T
Whether or not you are independent for purposes of serving as a
member of an audit team is governed solely by the SEC. - Correct
Answer-F
Independence is essential when a CPA in the practice of public
accounting issues a report that provides assurance on the
reliability of a written assertion that is the responsibility of another
party. This type of engagement is referred to broadly as a
nonassurance service. - Correct Answer-F
assurance
Independence is an essential auditing
standard because the auditor's opinion is
Vendarsol
, provided to enhance confidence in the
reliability of financial statements that are the
representations of the auditors. - Correct
Answer-T
The CPA firm, including its pension,
retirement, and similar plans, must be
independent of the client as if the CPA firm
were a covered member/person. - Correct
Answer-T
A direct financial interest is created when a
covered member invests in a nonclient entity
that has a financial interest in a client -
Correct Answer-F indirect financial interest
Financial interests of a CPA's nondependent
children are attributed directly to the CPA. -
Correct Answer-F indirect financial interest
Whether an indirect financial interest impairs
independence depends on materiality. -
Correct Answer-T
Financial statement audit services are the
only engagements that require
independence . - Correct Answer-F
A direct financial interest is created when a
covered member invests in a nonclient entity
Vendarsol
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Vendarsol. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
82871 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now