Answer each of the following independent questions, based on your understanding of the AICPA Code of Professional
Question:
Answer each of the following independent questions, based on your understanding of the AICPA Code of Professional Conduct or IFAC Code of Ethics for Professional ACcountants. Cite support for your answer.
a. May an auditor refer business to a client in exchange for commissions?
b. Under what conditions may an auditor allow a departure from GAAP to appear in the financial statements?
c. May an audit firm charge a contingent fee for a client who is attempting to secure a refund from a tax authority (e.g., the U.S. IRS)?
d. Does the auditor have to justify his or her independence to a client's audit committee under any conditions?
e. May a former partner of an audit firm accept a position on the board of directors of a client of that audit firm?
f. May the name of the audit firm include a reference to its specialty?
g. May an audit firm collect a "finder's fee" for referring business to another audit firm?
h. To whom may an auditor reveal information relevant to a regulatory investigation on a client?
Step by Step Answer:
Auditing Assurance And Risk
ISBN: 9780324313185
3rd Edition
Authors: W. Robert Knechel, Steve Salterio, Brian Ballou