44. It is not a violation of the AICPAs Code of Professional Conduct for a CPA to

a. charge fees as an expert witness determined by the amount awarded to the plaintiff, even though CPA performs a compilation for client use also.

b. base consulting fees on a percentage of a bond issue, even though CPA performs a review for client also.

c. base his or her fee for a tax service on the amount of the refund that client will receive.

d. base consulting fees on a percentage of a bond issue, even though CPA performs an audit for client also.

45. When a CPA firm is requested to provide a written or oral opinion on the application of accounting principles or the type of audit opinion that would be issued for a specific or hypothetical transaction relating to an audit client of another CPA firm, primary among the requirements set forth is that

a. client is entitled to confidentiality, so the consulting CPA firm is forbidden from communicating with the CPA firm which does the audit.

b. the consulted CPA firm should communicate with the entitys existing auditors to ascertain all the available facts relevant to forming a professional judgment on the matters the firm has been requested to report on.

c. client is entitled to confidentiality, so the CPA firm which does the audit should refuse to share any information with the consulting CPA firm under any circumstances.

d. client is not entitled to confidentiality under these circumstances, so the existing auditors should share all information with the consulting CPA firm.

46. The AICPA standard of due care requires CPAs to:

a. discharge professional responsibilities with competence and diligence

b. serve the public without concern for the interests of the client

c. obtain mastery of the common body of knowledge associated with designation as a CPA.

d. all of the above are required by the standard of due care.

e. both a. and c. above are required by the standard of due care.

47. The auditor also provides accounting services for a client. During a period of transition in which the client could not find a replacement for accounting clerks, the auditor prepared source documents to help the client out. Which of the following is true regarding this situation.

a. This poses an adverse interest threat that is likely to be able to be mitigated through safeguards

b. This poses an adverse interest threat that is not likely to be able to be mitigated through safeguards

c. This poses an undue influence threat that is not likely to be able to be mitigated through safeguards.

d. This poses a self-review threat that is not likely to be able to be mitigated through safeguards.

e. This poses a self-review threat that is likely to be able to be mitigated through safeguards.

48. Guitterez, Detwiller, and Chitrakar, CPAs receive Saints tickets from an audit client. Under what circumstances could the tickets be accepted?

a. The client had an audit committee meeting the night before and several board members would be attending the game with the auditors.

b. The tickets are for a playoff game and the auditors are to pick them up at will call (the client is not attending with the auditors).

c. It is 1980 and the Saints have won one game and lost fourteen heading into the final week of the season (assume that current ethics rules apply, thoughjust trying to suggest the item is of low value).

d. The auditor could not accept the tickets under any of the circumstances listed above.

e. The auditor could accept the tickets in situations a. and c. above.

49. As the auditor, you determine that a footnote requires disclosure of sources of supply for a raw material and concentrations of revenue for a particular product. When you confront the client with your position that existing footnote disclosure is inadequate, the client insists that this information is proprietary and confidential, citing a loss of competitive advantages. What are your responsibilities under the Code of Conduct?

a. If the client refuses to disclose, issue an unmodified opinion and document the fact that the information is not quantitative and therefore not material

b. Inform the client that without disclosure a qualified opinion will be issued.

c. Make a supplemental disclosure with the SEC

d. Document that you insisted on disclosure but the client refused. Issue an unmodified opinion based on management assuming responsibility for this item.

50. A CPA has been asked to co-sign checks with a client employee while the company president is on a short vacation. Which of the following statements about the application of the independence rules to this situation is true?

a. Because the CPA will only be co-signing checks, independence is not impaired.

b. Because the CPA is a co-signer for a short time, independence is not impaired.

c. Because the CPA has entered into a joint business venture with the client, independence is impaired.

d. Because check signing is a management function, independence is impaired.