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2.
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When CPAs are able to take an unbiased viewpoint in the performance of professional services, it is referred to as independence. 0
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  In fact.
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In appearance.
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In conduct.
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In total.
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3.
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Which AICPA Conduct Rule applies only to members in the practice of public accounting? 0
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Compliance with Standards (202).
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General Standards (201).
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Accounting Principles (203).
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Contingent fees (302).
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4.
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Which of the following statements best explains why the accounting profession has found it essential to promulgate ethical standards and to establish means for ensuring their observance? 0
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Vigorous enforcement of an established code of ethics is the best way to prevent unscrupulous acts.
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Ethical standards that emphasize excellence in performance over material rewards establish a reputation for competence and character.
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A distinguishing mark of a profession is its acceptance of responsibility to the public.
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A requirement for a profession is to establish ethical standards that stress primarily a responsibility to clients and colleagues.
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5.
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Which of the following most completely describes how independence has been defined by the accounting profession? 0
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Performing an audit from the viewpoint of the public.
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Avoiding the appearance of significant interests in the affairs of an audit client.
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Possessing the ability to act with integrity, objectivity, and professional skepticism.
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Accepting responsibility to act professionally and in accordance with a professional code of ethics.
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6.
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When a CPA is associated with financial statements that do not comply with promulgated GAAP because the statements would be misleading without the departure, the CPA is not required to disclose 0
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The departure.
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The approximate effects of the departure in comparison to the application of GAAP.
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The reason the departure does not have a material effect on the statements.
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The reasons compliance would have been misleading.
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7.
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The CPA must not subordinate his or her professional judgment to that of others 0
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In every engagement.
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In every audit engagement.
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In every engagement except tax services.
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In every engagement except management advisory services.
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8.
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Which of the following is required for a CPA firm to designate itself as "Members of the AICPA" on its letterhead? 0
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All CPA owners must be members.
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The owners whose names appear in the firm name must be members.
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At least one of the owners must be a member.
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The firm must be a dues-paying member.
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9.
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Mark is the executive partner of Mark & Co. , CPAs. One of its smaller clients is a large nonprofit charitable organization. The organization has asked Mark to be on its board of directors, which consists of a large number of the community's leaders. Membership on the board is honorary. Mark & Co. would be considered to be independent 0
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Under no circumstances.
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As long as Mark's directorship was disclosed in the organization's financial statements.
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As long as Mark was not directly in charge of the audit.
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As long as Mark does not perform or give advice on management functions of the organization.
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10.
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According to the profession's ethical standards, an auditor would be considered independent in which of the following instances? 0
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The auditor's checking account, which is fully insured by a federal agency, is held at a client financial institution.
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The auditor is also an attorney who advises the client as its general counsel.
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A member donates service as treasurer of a charitable organization that is a client during the period covered by the financial statements.
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The client owes the auditor fees for two consecutive annual audits.
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11.
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Which of the following bodies ordinarily would have the authority to suspend or revoke a CPA's license to practice public accounting? 0
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The SEC.
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The AICPA.
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A state CPA society.
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A state board of accountancy.
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