ACCT 4553 Ethics Final AICPA 60 Questions With Correct Solutions |Test Your Skills
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Course
ACCT 4553 Ethics AICPA
Institution
ACCT 4553 Ethics AICPA
Which statement best describes a significant similarity between the AICPA and IESBA codes? - ️️- Both codes incorporate the conceptual framework approach for evaluating threats when specific rules on a matter do not exist.
Which statement best describes how the IESBA Code impacts the U.S. acco...
ACCT 4553 Ethics Final AICPA 60
Questions
Which statement best describes a significant similarity between the AICPA and IESBA codes? - ✔ ✔ -
Both codes incorporate the conceptual framework approach for evaluating threats when specific rules
on a matter do not exist.
Which statement best describes how the IESBA Code impacts the U.S. accounting profession or AICPA. -
✔ ✔ - The AICPA is required to adopt ethics standards that are at least as restrictive as the IESBA
rules
Which step in the decision-making model is characterized by asking the question, "if you had to discuss
your decision in public, would you be concerned about how it reflects on your ethics? - ✔ ✔ -
Consider your comfort level
Which step in the decision-making model is characterized by putting yourself in the shoes of a person
that the company's policies could impact - ✔ ✔ - Consider the effect on Stakeholders
Who establishes rules with respect to auditing and other attestation engagements, quality control of
audits, and independence of public auditors? - ✔ ✔ - PCAOB
You are receiving requests from all the LPs asking that they receive copies of the partnership records.
They claim the GP refused to furnish these records and referred all inquiries to you. Are you required to
furnish these to all LPs that ask? - ✔ ✔ - No, since they are not the client representative
I also must maintain my objectivity, be free of conflicts of interest, and discharge all my responsibilities
with due - ✔ ✔ Care
If each entity tells you, a publicly traded company, a different set of independence rules, who do you
follow first? - ✔ ✔ - The most restrictive requirements
If you outsource to a third party, you must do all of the following except: - ✔ ✔ - Receive client
approval to use a contractor
Jack Garry receives a call from a recruiting agency offering him a new position with Vertex, a mid-sized
company in Toledo, Ohio and audit client of James & John, P.C. His spouse, Kathy, is a manager in the
consulting practice of James & John, P.C. The position is an entry-level position in the company's internal
audit group. Jack would report to the internal audit manager and help formulate, test, and monitor
internal control over financial reporting. Does Jack's position create significant threats to Kathy's
, independence? Kathy provides occasional consulting services to Vertex. Which should Kathy consider in
evaluating this situation?
Which should Kathy consider in evaluating this situation? - ✔ ✔ - Both a and b are relevant.
(Whether the scope and duties of the entry-level position create threats to Kathy's independence due to
a real or perceived familiarity threat----Whether the scope of Kathy's services will involve the same
subject matter for which Jack is responsible
Larson, Inc., an SEC registrant, requests Jackson & Son's CPA (their auditor) to provide assistance in
performing human resource services. Which service may Jackson & Sons perform for Larson without
violating independence rules? - ✔ ✔ - Advising the client on whether a particular candidate has the
proper qualifications for a specific position
On October 11, 2020, ROC Accountants signed an engagement letter to begin auditing XYZ Corp for the
12-month period ended December 31, 2020. Audit planning is scheduled to commence on November 4,
2020. What is the earliest date on which ROC would be required to be independent of XYZ? - ✔ ✔ -
January 1, 2020
Rogers CPA is engaged to perform bookkeeping services (a nonattest service) for an attest client. Which
activity will impair Roger's independence? - ✔ ✔ - Supervise the client's employees as they perform
their normal activities
Suppose a statue exists in your state that allows you to place a lien on client records in the event of
unpaid fees. Given these facts are you obligated to return the client's records? - ✔ ✔ - Yes, these
records should be provided upon request
Susan, a current senior associate for EY, audits Pokes Corporation and has recently been approached by
Pokes Co. to discuss a possible job opportunity. Susan must remove herself from the engagement until: -
✔ ✔ - The offer is rejected, or communication has ended with Pokes Co.
Suzie Lee, CPA, finds a material error in her client's previously filed tax return and advises the client on
how to correct it. Under AICPA rules, what should Suzie do if the client does not agree to correct the
error? - ✔ ✔ - Consider her continued association with the client
Tax return preparers may generally rely on a client's representations without verification unless: - ✔
✔ - The information seems incorrect, inconsistent, or incomplete
The threat that you will not act with objectivity because your interests are opposed to your clients
describes which of the following? - ✔ ✔ - Adverse interest threat
Trott & Co. CPA's, is performing an audit of Sunshine County under GAS. Which situation would most
likely prompt the firm to consider whether their independence is impaired? - ✔ ✔ - Sunshine's
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