A CPA audits the financial statements of a client. The CPA has been asked to perform bookkeepingfunctions for the client. Under the AICPA Code of Professional Conduct, which of the followingactivities would impair the CPA's independence? a. The CPA records transactions in accordance with classifications determined by management. b. The CPA prepares financial statements from a trial balance provided by management. c. The CPA posts adjusting journal entries prepared by managementto the trial balance. d.The CPA authorizes client transactions and reports them to management.

Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter16: Advanced Topics Concerning Complex Auditing Judgments
Section: Chapter Questions
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A CPA audits the financial statements of a client. The CPA has been asked to perform bookkeepingfunctions for the client. Under the AICPA Code of Professional Conduct, which of the followingactivities would impair the CPA's independence?

a. The CPA records transactions in accordance with classifications determined by management.

b. The CPA prepares financial statements from a trial balance provided by management.

c. The CPA posts adjusting journal entries prepared by managementto the trial balance.

d.The CPA authorizes client transactions and reports them to management.

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