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AICPA Ethics 113 Final With 100% Correct And Verified Answers
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AICPA Ethics 113 Final With 100% Correct And Verified Answers
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AICPA Ethics 113 Final With 100% CorrectAnd Verified Answers
Any investment made by a covered member in an investment club
is considered an indirect financial interest. Therefore, if club
investments are made in clients, independence is impaired if the
investment is considered material. - Correct Answer-F
According to the ACIPA Code of Conduct of conduct, " a member
who performs auditing, review, compilation, management
consulting, tax, or other professional services must comply with
standards created by the SEC." - Correct Answer-F
The term immediate family member includes spouse, whether or
not dependent; spousal equivalent, whether or not dependent;
former spouse, if legally divorced; dependents, whether or not
related. - Correct Answer-F
"Covered persons" include partners, principals, shareholders, and
employees of the CPA firm who are on the audit engagement. -
Correct Answer-T
The term "immediate family" includes a parent or sibling. - Correct
Answer-F "immediate family" includes spouse, dependents.
An opinion based on an audit of financial statements is a widely
known form of attestation - Correct Answer-T
The Sarbanes-Oxley Act of 2002 limits the engagement of and
concurring audit partners on an engagement to four-year terms. -
Correct Answer-F 5 yrs
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,To be recognized as independent, the auditor must be free from
any obligation to or interest in the client, its management or its
owners - Correct Answer-T
A firm when acting as principal auditor is not required to confirm
the independence of another firm engaged to perform segments of
an engagement - Correct Answer-F
A covered member who is a limited partner in a partnership that
invests in a client has a direct financial interest in that client. -
Correct Answer-F indirect financial interest
Indirect financial interests include a financial interest in the client
held by a close relative of an individual participating in the
engagement. - Correct Answer-T
A member of the AICPA not in public practice need not comply
with Independence Rules of the AICPA's Rules of Professional
Conduct. - Correct Answer-T
Whether or not you are independent for purposes of serving as a
member of an audit team is governed solely by the SEC. - Correct
Answer-F
Independence is essential when a CPA in the practice of public
accounting issues a report that provides assurance on the
reliability of a written assertion that is the responsibility of another
party. This type of engagement is referred to broadly as a
nonassurance service. - Correct Answer-F
assurance
Independence is an essential auditing
standard because the auditor's opinion is
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, provided to enhance confidence in the
reliability of financial statements that are the
representations of the auditors. - Correct
Answer-T
The CPA firm, including its pension,
retirement, and similar plans, must be
independent of the client as if the CPA firm
were a covered member/person. - Correct
Answer-T
A direct financial interest is created when a
covered member invests in a nonclient entity
that has a financial interest in a client -
Correct Answer-F indirect financial interest
Financial interests of a CPA's nondependent
children are attributed directly to the CPA. -
Correct Answer-F indirect financial interest
Whether an indirect financial interest impairs
independence depends on materiality. -
Correct Answer-T
Financial statement audit services are the
only engagements that require
independence . - Correct Answer-F
A direct financial interest is created when a
covered member invests in a nonclient entity
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