Pickens and perkins - Study guides, Class notes & Summaries

Chapter 01 The Role of the Public Accountant in the American Economy True / False Questions 1. Independent audits of today place more emphasis on sampling than did the audits of the 19th century. True False 2. The American Institute of Certified Public Accountants issues CPA certificates and permits CPAs to practice. True False 3. A company is either audited by the GAO or internal auditors, but not both. True False 4. The SEC does not pass on the merits of the securities that are registe...

Pickens and Perkins, CPAs, decide to incorporate their practice of accountancy. According to the AICPA Code of Professional Conduct: a. This is an acceptable form of organization. b. This is an acceptable form of organization if a minority interest of public shareholders is established. c. This is not an acceptable form of organization. d. This is only an acceptable form of organization if the firm performs no audits. - ANSWER a. This is an acceptable form of organization. The AICPA Cod...