AICPA-120 Exam 2 Review End Of Year Questions| With Answers
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Course
AICPA
Institution
AICPA
A member must be qualified to supervise and evaluate the work of specialists that he or she employs. - ️️True
The Sarbanes-Oxley Act of 2002 created a new Public Company Accounting Oversight Board that has many responsibilities, including the establishment and enforcement of ethics standards. ...
AICPA-120 Exam 2 Review End Of Year
Questions
A member must be qualified to supervise and evaluate the work of specialists that he or she employs. -
✔ ✔ True
The Sarbanes-Oxley Act of 2002 created a new Public Company Accounting Oversight Board that has
many responsibilities, including the establishment and enforcement of ethics standards. - ✔ ✔ True
The Sarbanes-Oxley Act of 2002 makes it unlawful for a registered accounting firm to perform any
auditing services for a public company for a one year period starting from the date the public company
hired a CEO, CFO, controller, chief accounting officer, or any equivalent position, where that person was
previously employed by that accounting firm and had participated in the audit of that public company. -
✔ ✔ True
The Sarbanes-Oxley Act of 2002 makes it unlawful for a registered accounting firm to perform several
nonattest services for a public company audit client, however, internal audit oursourcing services can be
performed for an audit client. - ✔ ✔ False
The SEC does not consider independence impaired if a CPA firm rents a block of computer time to a
client. - ✔ ✔ False
The SEC Practice Section prohibits members from performing public opinion polls for clients. - ✔ ✔
True
The SEC prohibits auditors from being a broker-dealer. - ✔ ✔ True
The SEC prohibits auditors from engaging in a commercial business even though it is not in direct
competition with the business of a client. - ✔ ✔ False
A code of ethics serves as a reference and benchmark for acceptable professional behavior. - ✔ ✔
True
A conflict of interest does not exist when a member in public practice provides taxes services to a
divorced couple. - ✔ ✔ True
A conflict of interest would exist when a member in public practice serves as a director of a nonclient
bank. - ✔ ✔ True
A conflict of interest would exist when a member in public practice serves the nonclient bank as a
consultant to the board of directors. - ✔ ✔ False
, A conflict of interest would not result if a member provided personal financial planning services to
several members of a family who may have opposing interests. - ✔ ✔ False
A covered member has to be independent to perform a compilation. - ✔ ✔ False
A covered member's close relatives could include his mother, his nephew, and his brother. - ✔ ✔
False
A covered member's immediate family member's employment with an attest client would impair the
attest firm's independence. - ✔ ✔ False
A member or CPA firm is responsible for directing the internal audit function. - ✔ ✔ False
A member or CPA firm is responsible for establishing and maintaining internal control. - ✔ ✔ False
A member who retains client records after the client requests them commits a discreditable act. - ✔
✔ True
A member who solicits or knowingly discloses Uniform CPA Exam questions without written
authorization of the AICPA commits a discreditable act. - ✔ ✔ True
A member, who violates any state or federal anti-discrimination law, including laws prohibiting sexual or
other forms of harassment, commits a discreditable act. - ✔ ✔ True
A member's independence is impaired as a result of serving on a citizens' committee that is studying the
financial status of the state when the client is a county in that state. - ✔ ✔ False
A permitted service under the AICPA rules includes interviewing candidates to provide input to
management in arriving at a listing of best qualified applicants to be provided to management. - ✔ ✔
True
A violation of the Integrity and Objectivity Rule would result when a member in public practice serves as
a director of a non-client bank. - ✔ ✔ True
Acceptance of a gift from a client will not impair independence if the gift is lavish, but not excessive
considering the audit fee. - ✔ ✔ False
Acceptance of a gift from a client will not impair independence if the item receiving is a token gift. - ✔
✔ True
According to the PCAOB quality control standards applying to an audit, the engagement quality reviewer
evaluates the auditor report but not the internal control report. - ✔ ✔ False
According to the PCAOB quality control standards applying to an audit, the engagement quality reviewer
most liked may be an engagement partner on a prior audit but not the current audit. - ✔ ✔ False
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