Acct 4553 - Study guides, Class notes & Summaries

Which statement best describes a significant similarity between the AICPA and IESBA codes? A.) Both codes contain specific ethics and independence provisions related to public interest entities. B.) The codes contain the exact same provisions for corporate accountants. C.) The codes combine the rules for members in business and public practice in one section. D.) Both codes incorporate the conceptual framework approach for evaluating threats when specific rules on a matter do n...

In which way do DOL independence rules differ from the AICPA rules? A.) The DOL rules on non-attest services are more comprehensive than the AICPA independence rules. B.) The DOL rules ban auditors from providing actuarial services to benefit plans that they audit. C.) The DOL permits auditors to perform recordkeeping whereas the AICPA rules would not. D.) The DOL defines a member much more broadly than the AICPA's covered member. D.) The DOL defines a member much more broa...

Which statement best describes the AICPA ethics rules relating to a member's failure to file his personal tax return in a timely manner? A.) The member is strongly encouraged to file his/her personal tax returns in a timely manner. B.) The member is not in violation of any ethics rules as long as the failure to file a personal tax return in a timely manner was due to a heavy workload. C.) The failure to file a personal tax return in a timely manner must be disclosed to all client...

A member has been asked to co-sign checks with a client employee while the company president is on vacation. Which statement about the application of the AICPA independence rules to this situation is correct? A.) Because the member will only be co-signing checks, independence is not threatened. B.) Because the member has entered into a joint venture with the client, independence is impaired. C.) Because check-signing is a management function, independence is impaired. D.) Becau...

Zelada and Smith, CPAs, and their client, Harris Electrical, are discussing a possible advisory engagement in which the firm would review Harris' accounts receivable system and recommend changes that would streamline the company's collection process. Harris will pay Zelada and Smith a fee based on improved performance in accounts receivable collections. Would this contingent fee arrangement raise any ethical concerns under the profession's rules? Yes, but only if Zelada and Smith was per...

Jane, a partner in a CPA firm, borrows $100,000 on a secured note from one of the firm's bank audit clients to build a new dormer on her house. The amount of the loan is material to Jane. Jane practices in the same office as the lead partner on the bank's audit. Jane will not provide any services to the bank and she is unable to influence the engagement. Is Jane's independence impaired under the AICPA code? A.) No, because Jane is not on the attest team or able to influence the engagement....

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