4. Which section of the regulations requires a CPA to comply with Generally Accepted Accounting Principles and Generally Accepted Auditing Standards?

• If compliance is required by other organizations (PCAOB, AICPA, etc.) why do you think this requirement is also included in the regulations?

5. If the provisions of section 63 are already included in other federal and state laws, why do you think they are also included in regulation 63?

6. Section 65 is very important. If it is so important, why do you think it is so short?

7. Explain how sections 63 and 67 are related.

8. Assume that during the course of an audit, an auditor identifies errors in the accounting records and financial statements. They notify the client and then prepare proposed journal entries for the client to correct the errors. These journal entries become part of the audit working papers. The client is delinquent in paying the audit fee, but they have requested a copy of the proposed journal entries.

• Despite not being paid for their work, is the CPA firm required to provide the journal entries to the client?
• Which regulation provides guidance on this question?

9. View disciplinary documents against Deloitte & Touche on August 21, 2011 by the Board of Accountancy (see Fall 2011 UPDATE (Links to an external site.). After reading the brief summary, research further to investigate what happened.

• Do you believe the discipline was appropriate?
• What different discipline do you think would have been appropriate?

Answer rating: 100% (QA)

4Generally Accepted Accounting Principles GAAP and Generally Accepted Auditing Standards GAAS are both established by the American Institute of Certified Public Accountants AICPA In the United States ... View the full answer