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| 1 | |
The ethical philosophy that considers the consequences of similar persons acting in the same manner under similar circumstances is called the |
| | A) | Utilitarian Principle. |
| | B) | Virtue Ethics. |
| | C) | Categorical Imperative. |
| | D) | Generalization Argument. |
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| 2 | |
Which of the following is NOT one of the AICPA's Code of Professional Conduct principles? |
| | A) | The public interest. |
| | B) | Integrity. |
| | C) | Quality control. |
| | D) | Scope and nature of services. |
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| 3 | |
The fundamental issues related to independence require that the auditor avoid |
| | A) | Financial connections with the client and financial connections with the client's competitors. |
| | B) | Representing the shareholders interests. |
| | C) | Responsibility for auditing the client's internal control system. |
| | D) | Financial connections with the firm and acting as management. |
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| 4 | |
According to Sarbanes-Oxley, what party is responsible for assuring auditor independence? |
| | A) | Audit committee. |
| | B) | Engagement partner. |
| | C) | Shareholders. |
| | D) | Public Company Accounting Oversight Board (PCAOB). |
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| 5 | |
Rule 102, Integrity and Objectivity applies to |
| | A) | Only audit services. |
| | B) | All attestation services. |
| | C) | All accounting and audit services. |
| | D) | All professional services. |
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| 6 | |
Rule 201, General Standards, requires a member in public practice to a follow all of the following standards except |
| | A) | Professional competence. |
| | B) | Due professional care. |
| | C) | Integrity and objectivity. |
| | D) | Sufficient relevant data. |
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| 7 | |
Rule 301, Confidentiality, allows an auditor to disclose client information under several different conditions. Which of the following statements is NOT one of the conditions where an auditor is allowed to disclose client information? |
| | A) | In response to a subpoena from a court of law. |
| | B) | In response to an inquiry by a state licensing board. |
| | C) | In response to a peer review. |
| | D) | In response to a request from a major shareholder. |
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| 8 | |
Which of the following is NOT considered an act discreditable to the profession when auditing an SEC client? |
| | A) | Withholding a client's records. |
| | B) | Discrimination in employment. |
| | C) | Performing audit and other services prohibited by the SEC. |
| | D) | Failure to follow government audit standards in a government audit. |
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| 9 | |
According to Rule 502, Advertising and Other Forms of Solicitation, CPAs practicing public accounting may |
| | A) | Only advertise in professional publications. |
| | B) | Use advertisements that contain statements from clients regarding the quality of work performed by the firm. |
| | C) | Obtain clients by hiring a marketing firm to try and circumvent the rule. |
| | D) | Only advertise services other than audit services. |
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| 10 | |
According to Rule 503, Commissions and Referral Fees, a commission is acceptable if it is disclosed to the client and |
| | A) | The accountant performs an audit of the financial statements. |
| | B) | The accountant performs a review of financial statements rather than an audit. |
| | C) | The accountant performs a compilation of financial statements that is for internal use only. |
| | D) | The accountant performs an examination of prospective financial information. |
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