Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN: 9781337619455
Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher: Cengage Learning
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Question
Chapter 1, Problem 10CYBK
To determine
Introduction:AICPA regulates accounting profession within the country and issues codes of professional conduct that are to be followed by the AICPA members.
To examine:Whether the given statement is true or false.
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Students have asked these similar questions
Which of the following would be considered a self-interest threat?
When a member of the assurance team was previously a director or officer of the assurance client
Potential employment with an assurance client
A member of the assurance team has a close family member who is a director or officer of the assurance client
Acting as the client’s advocate in a legal proceeding
If the agency relationship is undisclosed, the agent is liable to the third party if they fail to perform.
T/F
Which of the following would be considered a self-interest threat?
When a member of the assurance team was previously a director or officer of the assurance client
Acting as the client’s advocate in a legal proceeding
Potential employment with an assurance client
A member of the assurance team has a close family member who is a director or officer of the assurance clientWhich of the following would be considered a self-interest threat?
When a member of the assurance team was previously a director or officer of the assurance client
Acting as the client’s advocate in a legal proceeding
Potential employment with an assurance client
A member of the assurance team has a close family member who is a director or officer of the assurance client
Chapter 1 Solutions
Auditing: A Risk Based-Approach (MindTap Course List)
Ch. 1 - Prob. 1CYBKCh. 1 - Prob. 2CYBKCh. 1 - Prob. 3CYBKCh. 1 - Prob. 4CYBKCh. 1 - Prob. 5CYBKCh. 1 - Prob. 6CYBKCh. 1 - Prob. 7CYBKCh. 1 - Prob. 8CYBKCh. 1 - Prob. 9CYBKCh. 1 - Prob. 10CYBK
Ch. 1 - Prob. 11CYBKCh. 1 - Prob. 12CYBKCh. 1 - Utilitarian theory holds that what is ethical is...Ch. 1 - Prob. 14CYBKCh. 1 - Which of the following statements related to...Ch. 1 - Utilitarianism does not require which of the...Ch. 1 - Prob. 17CYBKCh. 1 - Prob. 18CYBKCh. 1 - Prob. 19CYBKCh. 1 - Which of the following factors is not an example...Ch. 1 - Prob. 1RQSCCh. 1 - Prob. 2RQSCCh. 1 - Prob. 3RQSCCh. 1 - Prob. 4RQSCCh. 1 - Prob. 5RQSCCh. 1 - Prob. 6RQSCCh. 1 - Prob. 7RQSCCh. 1 - Prob. 8RQSCCh. 1 - Prob. 9RQSCCh. 1 - Prob. 10RQSCCh. 1 - Prob. 11RQSCCh. 1 - Prob. 12RQSCCh. 1 - Prob. 13RQSCCh. 1 - Prob. 14RQSCCh. 1 - Prob. 15RQSCCh. 1 - Prob. 16RQSCCh. 1 - Prob. 17RQSCCh. 1 - Prob. 18RQSCCh. 1 - Prob. 19RQSCCh. 1 - Prob. 20RQSCCh. 1 - Prob. 21RQSCCh. 1 - Prob. 22RQSCCh. 1 - Prob. 23RQSCCh. 1 - Prob. 24RQSCCh. 1 - Prob. 25RQSCCh. 1 - Prob. 26RQSCCh. 1 - Prob. 27RQSCCh. 1 - Prob. 28RQSCCh. 1 - Prob. 29RQSCCh. 1 - Prob. 30RQSCCh. 1 - Prob. 31RQSCCh. 1 - Refer to the Why It Matters feature “What Is...Ch. 1 - Prob. 33RQSCCh. 1 - Prob. 34RQSCCh. 1 - Prob. 35RQSCCh. 1 - Prob. 36RQSCCh. 1 - Prob. 37RQSCCh. 1 - As the auditor for XYZ Company, you discover that...Ch. 1 - Prob. 39RQSCCh. 1 - Prob. 40RQSCCh. 1 - Prob. 41RQSCCh. 1 - Prob. 42RQSCCh. 1 - Prob. 43FFCh. 1 - Prob. 44FFCh. 1 - Prob. 45FFCh. 1 - Prob. 46FF
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Similar questions
- Roger Royce, CPA, has encountered a situation that he thinks may pose a threat to his independence with respect to Watson, Incorporated an audit client. The situation is not addressed by an independence rule or regulation. Using the AICPA Conceptual Framework for Independence Standards, describe how Royce can determine whether the threat truly impairs his independence.arrow_forwardAccoring to the AICPA Code of Professional Conduct, which of the following activities result in an act discredible to the profession? A. A CPA solicits recent niform PA Examination questions without written authorization from the AICPA. B. A CPA signs a document containing immaterial false and misleading information, or permits or directs aother CPA to do so. C. A CPA who is engaged to perform a government audit neglects to follow certain government auditing requirements and discloses in the audit report the fact that such requirements were NOT followed ad te reasons for it. D. A CPA fails to give a client copies of the CPA's workpapers related to a completed and issued work product upon the clients request because the cliet has not paid fees payable to the CPA for the work product.arrow_forwardAuditor’s failure to exercise sufficient care and skill in carrying out their audit might lead to legal action by those who claim to rely on the work of the auditor (Che-Ahmad et. Al., 2018). REQUIRED: Discuss THREE (3) safeguards by auditors that could help minimize the risk of legal liability.arrow_forward
- AICPA independence requirements suggest that a CPA should evaluate whether a particular threat to independence would lead a reasonable person, aware of all the relevant facts, to conclude that: a A questioning mind reveals doubt as to independence. b An unacceptable risk of non-independence exists. c The accountant is definitely not independent. d There is substantial cause for a legal finding of non-independence.arrow_forwardAuditor’s failure to exercise sufficient care and skill in carrying out their audit might lead to legal action by those who claim to rely on the work of the auditor (Che-Ahmad et. Al., 2018). Discuss THREE (3) safeguards by auditors that could help minimize the risk of legal liability.arrow_forwardAfter accepting an engagement, a CPA discovers that the client’sindustry is more technical than he realized and that he is not competent in certain areasof the operation. What are the CPA’s options?arrow_forward
- Which of the following family relationships is most likely to impair a CPA's independence with respect to a particular audit client on which the CPA works as a “covered member”? Select one: The CPA's spouse participates in a savings plan sponsored by the client. A cousin has an immaterial investment in the client of which the CPA is aware. The CPA's father is president of the audit client. A close relative has a material investment in that client of which the CPA is not aware.arrow_forwardWhat are the rights and duties of the CPA? What obligation does the CPA have to a user of the document who did not pay for the report? What right does the client have to direct the work of the CPA? Is a client always owed the duty of confidentiality?arrow_forwardDefine the obligations of auditors in the event that a client fails to comply with applicable laws or regulations.arrow_forward
- A CPA wishes to use representation letter as a substitute for performing other audit procedures. Doing so: Violates professional standards, Is acceptable, but should only be done when cost justified, Is acceptable, but only for non-public clients, Is acceptable and desirable under all conditionsarrow_forwardUnder the AICPA Code of Professional Conduct, which of the following rules is not applicable to CPAs in business? A. Integrity and objectivity B. General standards C. Independence D. Acts discreditablearrow_forwardWhen the client is not permit the communication between the predecessor auditor and the successor auditor or the predecessor is not provide a comprehensive response, the successor should perform additional investigations to reach the decision of accepting a prospective client Select one: True or Falsearrow_forward
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