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question8 (TCO C) Based upon the below four situations, explain your position of why or why...

question8

(TCO C) Based upon the below four situations, explain your position of why or why not the following circumstances would have violated the professions ethical standards when you are a practicing CPA.
1.    Expressed an unmodified opinion on the current year’s financial statements when fees for the prior year’s audit were unpaid
2.    Recommended a controller’s position description with candidate specifications to an audit client
3.    Purchased a CPA firm’s practice of monthly write-ups for a percentage of fees to be received over a 3-year period
4.    Made arrangements with a financial institution to collect notes issued by a client in payment of fees due for the current year’s audit

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Answer:

Given question,

(TCO C) Based upon the below four situations, explain your position of why or why not the following circumstances would have violated the professions ethical standards when you are a practicing CPA.
1.    Expressed an unmodified opinion on the current year’s financial statements when fees for the prior year’s audit were unpaid
2.    Recommended a controller’s position description with candidate specifications to an audit client
3.    Purchased a CPA firm’s practice of monthly write-ups for a percentage of fees to be received over a 3-year period
4.    Made arrangements with a financial institution to collect notes issued by a client in payment of fees due for the current year’s audit

Now answers :

Answer 1. is correct.

Reason :

Review expenses that are long past due interpretation of the qualities of a credit under direct lead 101. Autonomy is weakened whenever charged or unbilled expenses, or a note emerging from the expenses, for customer administrations rendered over 1 year before the current year's report date stay unpaid when the current year's report is issued. Notwithstanding, this decision does not have any significant bearing if the customer is in insolvency. In addition, long late charges don't block the CPA from performing administrations not requiring autonomy.

Answer 2. Incorrect.

Reason : Since a CIPA won't weaken freedom by prescribing work position depictions. Be that as it may, the CPA will be in infringement if (s) he in charge of screening applicants or settling on choices to procure.

Answer 3.   Incorrect.

Reason : Since no proclamation restricts buy of an accounting firm for a level of charges.

Answer 4.   Incorrect.

Reason : Since the AICPA has decided that this training does not damage the code.


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