AICPA Code Of Professional Conduct Practice Test

Your firm performs a review engagement for a nonissuer technology startup. The client’s chief financial officer asks you to design and implement the company’s revenue recognition controls because “you know what auditors look for,” and offers an increased fee if you can complete it before year-end. You are concerned this would involve assuming management responsibilities. How should the auditor ensure compliance with the AICPA Code?

Your firm is engaged to audit a nonissuer entity that has adopted new accounting guidance requiring specialized valuation skills. The engagement partner plans to rely on prior-year workpapers and assign the valuation testing to a first-year staff member without involving a specialist to control costs. No one on the team has recent training in valuation techniques. How should the auditor ensure compliance with the AICPA Code?