Question

15. An explanatory paragraph would be added to an unqualified

     audit report [“good report”] for:

        a. An accounting (GAAP) problem.

        b. A lack of evidence (scope) problem.

        c. The company’s status as a viable entity (i.e. going

            concern issue) is doubtful.

        d. Lack of independence.

      Answer ____

16. The partner of ABC CPA firm doing the audit of EmilyAnne

     Company owns a few shares of EmilyAnne Company common stock

     (worth about $20). Thus ABC CPA firm would not be considered

     independent of EmilyAnne Company. What concept is most

     likely involved?

      a. Independence in appearance

      b. Independence in attitude

      c. Independence in exercise

      d. Independence in fact

      Answer ____

17. Consider the following statements [Chapter 19]:

     I. Regarding the AICPA Code of Professional Conduct, the

         rules contained in Section 1.200 cover issues relating

        to integrity and objectivity.

    II. “A member shall not commit an act discreditable to the

        profession” can be found in Section 1.400.001 of the

        AICPA’S Rules of Conduct.

      a. I is true; II is true

      b. I is true; II is false                      

      c. I is false; II is true

      d. I is false; II is false

      Answer ____

18. Which of the following is not considered one of the seven

    categories of threats to a CPA’s integrity

      and objectivity (see textbook page 640)?

      a. Adverse-interest threats

      b. Advocacy threats.

      c. Familiarity threats.

      d. Management-participation threats

      e. Professional-interest threats

      f. Self-Interest threats.

      Answer ____

19. According to the AICPA’s Code of Professional Conduct, which

    of the following individuals is in a position to influence

    an attest engagement managed in the Boston office of a CPA

    firm (i.e. a covered member) [Chapter 19]?

    a. Any Professional staff in the Boston office of the CPA

         firm.

      b. The technical partner in Seattle who served as a

         consultant on the engagement.

      c. Any Professional staff in the Seattle office of the CPA

         firm.

      d. Partners in the Seattle office of the CPA firm.

      e. All of the above

      f. None of the above.

      Answer ____

15. An explanatory paragraph would be added to an unqualified

     audit report [“good report”] for:

        a. An accounting (GAAP) problem.

        b. A lack of evidence (scope) problem.

        c. The company’s status as a viable entity (i.e. going

            concern issue) is doubtful.

        d. Lack of independence.

      Answer ____

16. The partner of ABC CPA firm doing the audit of EmilyAnne

     Company owns a few shares of EmilyAnne Company common stock

     (worth about $20). Thus ABC CPA firm would not be considered

     independent of EmilyAnne Company. What concept is most

     likely involved?

      a. Independence in appearance

      b. Independence in attitude

      c. Independence in exercise

      d. Independence in fact

      Answer ____

17. Consider the following statements [Chapter 19]:

     I. Regarding the AICPA Code of Professional Conduct, the

         rules contained in Section 1.200 cover issues relating

        to integrity and objectivity.

    II. “A member shall not commit an act discreditable to the

        profession” can be found in Section 1.400.001 of the

        AICPA’S Rules of Conduct.

      a. I is true; II is true

      b. I is true; II is false                      

      c. I is false; II is true

      d. I is false; II is false

      Answer ____

18. Which of the following is not considered one of the seven

    categories of threats to a CPA’s integrity

      and objectivity (see textbook page 640)?

      a. Adverse-interest threats

      b. Advocacy threats.

      c. Familiarity threats.

      d. Management-participation threats

      e. Professional-interest threats

      f. Self-Interest threats.

      Answer ____

19. According to the AICPA’s Code of Professional Conduct, which

    of the following individuals is in a position to influence

    an attest engagement managed in the Boston office of a CPA

    firm (i.e. a covered member) [Chapter 19]?

    a. Any Professional staff in the Boston office of the CPA

         firm.

      b. The technical partner in Seattle who served as a

         consultant on the engagement.

      c. Any Professional staff in the Seattle office of the CPA

         firm.

      d. Partners in the Seattle office of the CPA firm.

      e. All of the above

      f. None of the above.

      Answer ____

Answer 1

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15. An explanatory paragraph would be added to an unqualified audit report [“good report”] for:

a. An accounting (GAAP) problem.

16. The partner of ABC CPA firm doing the audit of Emily Anne Company owns a few shares of Emily Anne Company common stock (worth about $20). Thus ABC CPA firm would not be considered independent of Emily Anne Company. What concept is most

a. Independence in appearance

Answer 17

b. I is true; II is false.

18. Which of the following is not considered one of the seven categories of threats to a CPA’s integrity.

e. Professional-interest threats

19. According to the AICPA’s Code of Professional Conduct, which of the following individuals is in a position to influence an attest engagement managed in the Boston office of a CPA firm (i.e. a covered member) [Chapter 19]?

b. The technical partner in Seattle who served as a consultant on the engagement.