Exam 3 Test Bank-Ethics WITH 100% CORRECT ANSWERS

1. CPA Brown's client Joe Jones went to another firm without paying his final bill, which was due to CPA Brown's firm. When Joe asks for his books and records, CPA Jones can refuse to give them to him until he pays his bill. B. False Normally in the absence of an agreement of contract a CPA owns his work papers while the client does not, under what circumstances is the client entitled receive copies of the CPAs work papers after terminating the CPA's services He entitled to the work papers without which the clients books and records would be incomplete 3. The CPE requirements to maintain your CPA license requires, amongst other things The licensee takes at least 20 hours in each of the two years, of which 12 must be technical in nature The licensee take a total of 80 hours of CPE in the two year period of which at least 40 hours must be of a technical nature 4. A CPA may not show client work papers without getting permission from the client to the FBI and secret service A CPA may show client work papers without getting permission from the client A. A company looking to buy his practice B. Government regulators such as the SEC and stateboard of accountancy C. Peer Reviews D. FBI E. A.B.C are correct E. A.B.C are correct 6. When a CPA moves he must notify the state board of accountancy of his new address Within 30 days if he has had a license regardless of whether it is active, inactive, expired, or revoked. 7. You're a CPA in the state of California and you're informed you're the subject of an investigation by the PCAOB you must report the opening of the investigation to the state board of accountancy within 30 days 8. Which of the following circumstances would prevent a CPA from ethically receiving a commission? A. He is doing work for the client which would require independence, such as an auditor review B. He is receiving it for referring his client to the services of another person of business C. He has not properly disclosed to his client in proper writing in writing on letterhead that he is receiving commision D. All of the above D. All of the above 9. In order to sign off on financial statements, a CPA must Get 24 hours of audit and accounting courses, plus 4 hours of fraud classes, and 4 hours of ethics classes, plus 80 hours every two years of which 40 must be in a technical area. You must also get 20 hours in each of the two years of which 12 must be technical. Every third renewal period you must give two additional hours of regulatory ethics 10. A CPA may use confidential client information without obtaining client permission to the extent necessary to defend himself from malpractice charges brought to him by the client A. True B. False A. True