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Module 2_ Unit 1 & 2 (100%Verified )Answers
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Module 2_ Unit 1 & 2 (100%Verified )Answers
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Module 2: Unit 1 & 2 (100%Verified)Answers
A CPA shall comply with standards and interpretations by bodies designated by
Council.ANS- - What are the general standards set by the AICPA?
1. FASAB (Federal Accounting Standards Advisory Board)
2. FASB (Financial Accounting Standards Board)
3. GASB (Governmental Accounting Standards Board)
4. IASB (International Accounting Standards Board)ANS- - General standards set by the
AICPA state that a CPA shall comply with standards and interpretations by what bodies
designated by Council? (4)
General Standards RuleANS- - What is AICPA code 1.300?
1. professional competence
2. due professional care
3. Planning and supervision
4. Sufficient relevant dataANS- - AICPA code 1.300 states that a CPA shall comply with
what 4 standards?
1. knowledge of the profession's standards,
2. techniques and the technical subject matter involved, and
3. to the capability to exercise sound judgment in applying such knowledge in the
performance of professional services.ANS- - competence relates to... (3)
This is ok because you are just doing due diligence to provide a good serviceANS- - In
regards to competence, what if a CPA must use additional research ot consultation with
others to perform professional services?
the member should suggest, in fairness to the client and the public, the engagement of
someone competent to perform the needed professional service, either independently
or as an associate.ANS- - What happens if a member is unable to gain sufficient
competence through alternative means?
professional qualifications, technical skills and other resources required.ANS- - When
selecting subcontractors to assist with competence, the CPA has a responsibility to
, ensure that the subcontractors have.... (3)
A
(Using due care requires that a CPA take those steps that are reasonably necessary to
ensure the accuracy of an audit. If others are assisting in the audit, the accountant in
charge has a duty to look over their work, as he/she is ultimately responsible for
it.)ANS- - To exercise due professional care, an auditor should:
a. Critically review the judgment exercised by those assisting in the audit. b. Examine
all available corroborating evidence supporting management's assertions. c. Design
the audit to detect all instances of illegal acts.
d. Attain the proper balance of professional experience and formal education.
Although supervision does not require that the CPA be qualified to perform each of the
specialist's tasks, the CPA should be able:
1. to define the tasks and
2. evaluate the end product.ANS- - A CPA would like to add to the CPA's staff a systems
analyst who specializes in developing computer systems. Must the CPA be able to
perform all of the services that the specialist can perform in order to be able to supervise
the specialist?
the cpa should be able to... (2)
express an opinion or state affirmatively that the financial statements or other financial
data of any entity are presented in conformity with generally accepted accounting
principles or
state that he or she is not aware of any material modifications that should be made to
such statements or data in order for them to be in conformity with generally accepted
accounting principles,
IF such statements or data contain any departure from an accounting principle has a
material effect on the statements or data taken as a whole.ANS- - the general standards
state that a member shall not.... (3)
due to unusual circumstances the financial statements would have otherwise been
misleadingANS- - According to the general standards in 1.300, when can financial
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