UNIT 2- Professional Obligations
Multiple Decision Quiz 1
A CPA's preservation of client-provided records as a way of improving payment associated with an overdue audit fee is an action that is| В
| Prohibited under the AICPA Code of Professional Carry out. | | A breach of GAAS.
| Not addressed by the AICPA Code of Specialist Conduct. | | Suitable if endorsed by point out law.
Johnson, CPA, is a partner of Johnson Accounting Firm. Johnson audited the books of Hometown Traditional bank. Smith's freedom would be impaired under which in turn of the next circumstances? | В
| Smith had an account with Hometown Traditional bank 2 years back.
| Jones has a collateralized automobile bank loan with Home town Bank. | | Jones is a movie director of Hometown Bank.
| Smith and a Hometown Bank panel member belong to the same cathedral.
Conduct Guideline 501 claims that a member of the AICPA shall not devote ani towards the profession. Which will of the pursuing most likely is usually not regarded such an act? | В
| Retention of client-provided documents after a demand is made for these questions state that particularly grants the CPA a lien upon all client records. | | Following your relationship of your nonowner member with the organization is terminated, the member takes replications from the business's client files without agreement. | | Failure to provide the client with consumer records made by the member. | | Withholding because of nonpayment of fees to get a completed engagement adjusting and closing record entries not reflected in the client's literature.
According to Conduct RuleВ 102, Integrity and Objectivity, a member of the AICPA| В
| Is usually subject to Regulation 102 the moment engaged in teaching but not exploration. | | Who has a dispute with his/her director about documenting of ventures has no accountability to act set up supervisor's placement is not an acceptable alternate. | | Has no requirement to respond to inquiries by simply his/her employer's external documentalist. | | Who has a dispute with his/her boss about assertion preparation comes with an obligation to do something if a material misstatement will otherwise consequence.
Which of the following, in the event that any, is definitely prohibited by the AICPA Code of Professional Conduct? | В
| Practice of community accounting in the form of a professional organization that uses a firm identity indicating specialty area. | | Use of the partnership identity for a limited period by simply one of the companions in a open public accounting firm after the loss of life or drawback of all other partners. | | Faltering to provide working papers towards the client after having a request has become made. | | Each of the answers are permitted by the AICPA Code of Professional Execute.
In which from the following scenarios is there a infringement of customer confidentiality within the AICPA Code of Professional Conduct? | В
| A part discloses confidential client data to a specialist liability insurance company after learning of a potential claim resistant to the member. | | An associate discloses confidential client info to a the courtroom in connection with arbitration proceedings in relation to the client. | | A part whose practice is generally bankruptcy discloses a client's name. | | A member uses a records preservation agency to store clients' documents that contain private client information.
Among other things, Perform Rule 102, Integrity and Objectivity, forbids knowing misrepresentation of details. A member from the AICPA violates this element of the regulation when (s)he| В
| Suggests that a client buy a business where the member has an interest. | | Fails to correct a great entity's documents that are inaccurate even if (s)he has no power to do so. | | Knowingly makes phony and deceptive journal entries in the records if many are material. | | Indicators a document containing false and misleading information regardless of its substantialness.
According to the PCAOB, an accounting firm is most likely to be impartial of...