Part One: True or False - 1 point each one

1. Ethical values such as caring have been incorporated into the laws, as caring now been defined enough to be legally enforceable.

2. The role of the independent auditor is to ensure that information is fair to all parties and biased to benefit only a credit team of the entity.

3. The interpretations of the code of ethics of AICPA provide guidelines as to the scope and application of rules.

4. The rules of the code professional conduct (Code of FASB) are provided overall framework.

5. The integrity and objectivity rule applies to all members of the AICPA and all services provides by CPA.

6. Independence: a member shall comply with the following standards and with any interpretations thereof by bodies designated by AICPA.

7. The accounting principles rule recognizes the authority of certain designated to issue generally accepted accounting principles.

8. The confidential relationship rule prohibits certified public accounts from directly disclosing such information to outside parties, unless the auditors have a legal duty to do so.

9. The auditor generally owes a duty of care to third parties who are part of a limited group of persons whose reliance is "foreseen" by the auditor.

10. Since the Sarbanes-Oxley Act of 2002, both the number of lawsuits and the sizes of awards to plaintiffs in the courts have been reduced against auditors.