In the practice of public accounting, an auditor who is a member of the AICPA is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In the practice of public accounting, an auditor who is a member of the AICPA is expected to comply with the rules of the AICPA Code of Professional Conduct. Listed below are circumstances that raise a question about an auditor's ethical conduct. 1. The auditor has a bank loan with a bank that is an audit client. 2. An unqualified opinion is expressed when the financial statements of a county are prepared in conformity with principles established by the Governmental Accounting Standards Board. 3. An auditor retains the client's records as a means of enforcing payment of an overdue audit fee. 4. The auditor makes retirement payments to individuals who formerly were members of his firm. 5. An auditor sells her shares of stock in a client company in April prior to beginning work on the audit for the year ending December 31. 6. An auditor accepts an engagement knowing that he does not have the expertise to do the audit. 7. The auditor quotes a client an audit fee but also states that the actual fee will be contingent on the amount of work done. 8. The auditor's firm states in a newspaper advertisement that it has had fewer lawsuits than its principal competitors. 9. The auditor resigns her position as treasurer of the client on May 1, prior to beginning the audit for the year ending December 31. 10. The auditor discloses confidential information about a client to a successor auditor. 11. The auditor accepts an audit engagement when he has a conflict of interest. 12. An auditor prepares a small brochure containing testimonials from existing clients that he mails to prospective clients. 13. An auditor complies with the technical standards of the Accounting and Review Services Committee in reviewing the financial statements of a non-public entity. 14. An auditor audits the financial statements of a local bank and also serves on the bank's committee that approves loans. 15. An auditor pays a commission to an attorney to obtain a client. In the practice of public accounting, an auditor who is a member of the AICPA is expected to comply with the rules of the AICPA Code of Professional Conduct. Listed below are circumstances that raise a question about an auditor's ethical conduct. 1. The auditor has a bank loan with a bank that is an audit client. 2. An unqualified opinion is expressed when the financial statements of a county are prepared in conformity with principles established by the Governmental Accounting Standards Board. 3. An auditor retains the client's records as a means of enforcing payment of an overdue audit fee. 4. The auditor makes retirement payments to individuals who formerly were members of his firm. 5. An auditor sells her shares of stock in a client company in April prior to beginning work on the audit for the year ending December 31. 6. An auditor accepts an engagement knowing that he does not have the expertise to do the audit. 7. The auditor quotes a client an audit fee but also states that the actual fee will be contingent on the amount of work done. 8. The auditor's firm states in a newspaper advertisement that it has had fewer lawsuits than its principal competitors. 9. The auditor resigns her position as treasurer of the client on May 1, prior to beginning the audit for the year ending December 31. 10. The auditor discloses confidential information about a client to a successor auditor. 11. The auditor accepts an audit engagement when he has a conflict of interest. 12. An auditor prepares a small brochure containing testimonials from existing clients that he mails to prospective clients. 13. An auditor complies with the technical standards of the Accounting and Review Services Committee in reviewing the financial statements of a non-public entity. 14. An auditor audits the financial statements of a local bank and also serves on the bank's committee that approves loans. 15. An auditor pays a commission to an attorney to obtain a client.
Expert Answer:
Answer rating: 100% (QA)
1The auditor has a bank loan with a bank that is an audit client The professional ethics that applies is objectivity and independence An auditor must not take loan from a bank that is an audit client ... View the full answer
Related Book For
Principles of Auditing and Other Assurance Services
ISBN: 978-0078025617
19th edition
Authors: Ray Whittington, Kurt Pany
Posted Date:
Students also viewed these accounting questions
-
A self-review threat arises when: (a) the auditor has a loan from the client. (b) the auditor represents the client in negotiations with a third party. (c) the auditor performs services for the...
-
All other things being held constant, what is the change in the dependent variable for a unit change in X1 for the multiple regression equation: ? = 5.2 + 6.3X1 - 7.1 X2? +5.2 +6.3 +4.4 -7.1
-
Determine CPI, ETC (1), and EAC. Activity Total PV 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 6 6 2 20 10 10 3 30 9 6 6 6 3 4 20 8 2 5 5 5 16 4 4 4 4 6 18 9 9 7 8 4 4 Status Report: Ending Period 5 Task %...
-
Sandra, a sole proprietor, is an interior designer and has thefollowing account balances on December 31, 20X0: Cash $2,500,Inventory $9,000, Equipment $25,000, Accumulated depreciation$5,000, Liabi 2...
-
Consider the same setting as that of Exercise 4.39. Of the 100 participants, 45 are male and 55 are female. During the design of the study, one member of the research team suggests that all males be...
-
What information should normally be included in an operational audit report? How does the evolving audit report differ from the traditional audit report?
-
What are the ways that social media sites are affecting courtrooms?
-
The Circulation Manager of the Daily Advocate newspaper commissions a market research study to determine what factors underlie the circulation attrition. Specifically, the survey is designed to...
-
Your sisters Rebecca and Debra each just bought a house. Each sister paid $750,000 for the house. Each sister had a down payment of $200,000. Each sister got a mortgage with a 5 year term and a 25...
-
Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2020. She is 45 years old and has been divorced for four years. She receives $1,200 of alimony payments each month from...
-
"Draw a chart/graph in Excel for the T-v or P-v values, of the ammoniac. Annotate the variables, important points, and specify the substance and conditions. Mark the regions on the graph (include the...
-
Explain how a competitive firm selects the amount of labor it employs. Assume that the labor market is also competitive.
-
People and firms invest in human and physical capital. Both types of capital are durable goods, the benefits from which can last for many years. Entering into a credit agreement is often key in...
-
Suppose that competitive firms use a fixed proportions production process to assemble bicycles using one frame and two tires. Each frame costs \(p_{F}\) and each tyre costs \(p_{T}\). What is the...
-
Initially, the market has many souvenir shops, each of which charges \(p_{m}\) (because consumers do not know the shops' prices), and buyers' search costs are \(c\). If the government pays for half...
-
You want to determine whether or not buying stock in a certain company is a good investment. Can you use the following information to help answer this question? If so, how would it help you determine...
-
1. m A cannonball is fired at an angle of 37.0 above the horizontal and a speed of 33.0- S . It is fired from the top edge of a cliff that is 17.5m high, and land somewhere on the ground below the...
-
A test car is driven a fixed distance of n miles along a straight highway. (Here n Z+.) The car travels at one mile per hour for the first mile, two miles per hour for the second mile, four miles...
-
It is sometimes said that audit work on cash is facilitated by the existence of two independent records of the clients cash transactions, which are available for comparison by the auditors. Identify...
-
Define and give the purpose of each of the following controls: a. Record counts b. Limit test c. Validity test d. Hash totals
-
Your new client, Black Angus Valley Ranch, is a small corporation with fewer than 100 stockholders. It does not utilize the services of an independent stock registrar or transfer agent. For your...
-
Albatross Plc, the Australian subsidiary of a British packaging company, is preparing its budget for the year to 30 June 2013. In respect of fuel oil consumption, it is desired to estimate an...
-
The following details show the direct labour requirements for the first six batches of a new product that were manufactured last month: The Management Accountant reported the following variances: The...
-
According to the Techleader blog on South Africas Mail and Guardian website, e-books are about to do to the publishing sector what iTunes did to the music industry. According to the blog post, e-book...
Study smarter with the SolutionInn App