Exam (elaborations)
A6_M8_The AICPA Code of Professional Conduct – Q&A
- Course
- Institution
A6_M8_The AICPA Code of Professional Conduct – Q&A
[Show more]
Seller
Follow
LeCrae
Reviews received
Content preview
A6_M8_The AICPA Code of Professional Conduct – Q&AState board: Correct Ans - ☐ issues CPA .
☐ renews.
☐ suspends.
☐ revokes.
The AICPA's code of professional conduct governs any service that a
member of the AICPA performs. These services include audits, special
reports, compilations , reviews, and services performed on financial
forecasts and projections, as well as attestation engagements. Correct
Ans - members not in public practice are governed by certain
requirements of the Code of Professional Conduct as well.
A professional code of conduct is a distinguishing mark of a profession that
accepts a high degree of responsibility toward the public. it is a voluntary
acceptance for the purpose of benefiting society. Correct Ans - The
AICPA Code of Professional Conduct addresses the question of what is
"right" and "just." the code consists of principles and rules as well as
interpretations and other guidance.
The code utilizes certain terms to enhance the clarity of the interpretations
and definitions.
☐ Consider: used when the member is required to think about several
matters. Correct Ans - ☐ Evaluate: Used when the member has to
assess and weigh the significance of matter.
☐ Determine: Used when the member has to come to a conclusion and
make a decision on a matter.
The code is separated into three parts: Correct Ans - (1). members
in public practice.
(2). members in business.
(3). other members.
Principles provide the framework that is basis for the code of conduct.
Correct Ans - ☐ Responsibilities:
☐ Public Interest:
☐ integrity:
,☐ objectivity and independence:
☐ Due care:
☐ Scope and Nature of Services:
☐ Responsibilities: Correct Ans - in carrying out their
responsibilities as professionals, members should exercise sensitive
professional and moral judgements in all their activities.
☐ Public Interest: "members should accept the obligation to act in a way
that will serve the public interest, honor the public trust, and demonstrate
commitment to professionalism." Correct Ans - this relates to the
profession's acceptance of responsibility to the public.
☐ integrity: "to maintain and broaden public confidence, members should
perform all professional responsibilities with the highest sense of
integrity." Correct Ans - integrity addresses the question of what is
right and just.
☐ objectivity and independence: "a member should maintain objectivity
and be free of conflicts of interest in discharging professional
responsibilities. Correct Ans - a member in public practice should
be independent in fact and appearance when providing auditing and other
attestation services." [emphasis added.]
☐ Due care:
"a member should observe the profession's technical and ethical standards,
Correct Ans - strive continually to improve competence and the quality
of services, and discharge professional responsibility to the best of the
members' ability."
☐ Scope and Nature of Services: "a member in public practice should
observe the Principles Correct Ans - of the Code of Professional
Conduct in determining the scope and nature of services to be provided."
For exam purposes, it is key to remember that objectivity applies to all
services rendered; Correct Ans - but independence applies to
attestation services only [audits, special reports, and reviews].
This requires members to:
, (1). have adequate internal quality control measures to ensure quality
work; Correct Ans - (2). determine whether, for audit clients,
conflicts of interest arise due to the scope and nature of other services; and
(3). assess whether the firm's activities are consistent with
professionalism.
The "rules" portion of the code consists of rules, interpretations, and
rulings that govern the specific performance of members. Correct Ans
- The rules that apply to members are based on whether they are a
member in public practice, a member in business, and / or an other
member.
Member in public practice:
☐ independence rule.
☐ integrity and objectivity rule.
☐ General standards rule.
☐ compliance with standards rule.
☐ accounting principles rule. Correct Ans - ☐ confidential client
information rule.
☐ contingent fees rule.
☐ acts discreditable rule.
☐ advertising and other forms of solicitation rule.
☐ commissions and referral fees rule.
☐ form of organization and name rule.
Member in business: Correct Ans - ☐ integrity and objectivity rule.
☐ General standards rule.
☐ compliance with standards rule.
☐ accounting principles rule.
☐ acts discreditable rule.
Other member [i.e., retired or unemployed] Correct Ans - ☐ acts
discreditable rule.
Covered member: Correct Ans - audit team & office / boss "chain of
command."
Immediate family: Correct Ans - spouse and dependents [living
under your roof].
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LeCrae. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $19.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now