Ethics - AICPA

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CPA Auditing and Attestation (AUD) › Ethics - AICPA

Questions 1 - 6
1

“Responsibilities Principle” requires a member to:

uphold a client’s wishes

maintain public confidence

Provide information to those requesting

All of the above

Explanation

Under the AICPA code of professional conduct, the responsibility principle refers to maintaining public trust.

2

A member of the AICPA performing an audit, review, compilation, or other professional services must abide by:

Professional competence

Strict audit procedures

PCAOB procedures

All of the answer choices are correct

Explanation

PCAOB procedures are to be obeyed for public company engagements. In addition to professional competence, there is due professional care, planning and supervision, and sufficient relevant data.

3

An independent auditor must have which of the following?

Experience in taxation that is sufficient to comply with GAAS

Technical training that is adequate to meet the requirements of a professional

A background in many different disciplines

A pre-existing and well informed point of view with respect to the audit

Explanation

The General Standards Rule of the AICPA Code of Professional Conduct states that the auditor must have adequate technical training as an auditor.

4

The Concept of “due care” requires

Perfection

Continual improvement

Best of ability

None of the above

Explanation

According to AU 230: The auditor’s responsibility to exercise due care: “Due professional care requires the auditor to exercise professional skepticism. The auditor uses the knowledge, skill, and ability called for by the profession of public accounting to diligently perform, in good faith and with integrity, the gathering and objective evaluation of evidence. Under these guidelines, none of the answers suffice.

5

Under the “Scope and nature of services principle; a member is required to:

offer services on request

maintain quality of control procedures

monitor other members

be annually reviewed by the AICPA

Explanation

Under the AICPA code of professional conduct, the “scope and nature of services” principle requires that practitioners work in firms that maintain appropriate quality control procedures.

6

A CPA who is not in public practice is obligated to follow which of the following rules of conduct?

Contingent fees

Independence

Commissions

Integrity and objectivity

Explanation

A CPA must maintain objectivity and integrity in the performance of any professional service.

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