Which of the following would be considered a self-interest threat? When a member of the assurance team was previously a director or officer of the assurance client Potential employment with an assurance client A member of the assurance team has a close family member who is a director or officer of the assurance client Acting as the client’s advocate in a legal proceeding

Q: Given what you have learned about independence, do you believe that there would be a…

A: Definition: Auditor’s Opinion: It is a written statement describing an auditor’s liberated,…

Q: Accoring to the AICPA Code of Professional Conduct, which of the following activities result in an…

A: All the AICPA members are obligated to follow all the norms of the code of professional conduct. It…

Q: The selection of a right applicant for a vacant position will be an asset to the organization, which…

A: Screening candidates is an important element of a startup's hiring process; it entails going over…

Q: Which of the following would not be considered confidential information obtained in thecourse of an…

A: In the course of an engagement, there are some confidential information for which client's consent…

Q: irector of the client. B. An auditor acts as an advocate on behalf o

A: Here in the given MCQ, the option C & D are self interest threats. (whereas other two options…

Q: sufficient care and skill in carrying out their audit might lead to legal action by those who claim…

A: Auditing refers to the process when an accounting professional collects and rechecks all the…

Q: T F There is added protection for whistle-blowerswho report violations of the Sarbanes–Oxley Act.

A: People who report violation to Sarbanes Oxley Act are protected as per law under Section 806 of SOX

Q: a. What is the relationship between a. the ethical obligation of honesty and truth telling?b. Is it…

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Q: Who can sue the auditor? how they can sue the auditor. Explain.

A: An auditor is a person or an entity (if the auditor is a firm), who is authorized and assigned/hired…

Q: For what type of actions can clients bring suit against auditors under common law? What must…

A: Given: The clients can bring suit against auditors for breach of contract under common liability…

Q: Auditors may be held liable to both their clients and third parties under common law. a. What must…

A: An auditor has an obligation to their clients and third part to exercise due professional care.…

Q: When the client is not permit the communication between the predecessor auditor and the successor…

A: Auditing means the independent checking of company operation by outsider.

Q: What ethical responsibilities do members of the AICPA have for acts of nonmembers who are under…

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Q: In which of the following situations is there a violation of client confidentiality under the AICPA…

A: American Institute of CPA is the body which is issues the AICPA code of professional conduct. The…

Q: Why is it important for a CPA to promote professional services in an ethical manner? Do you believe…

A: Professionalism is the level of knowledge and expertise a person has in his profession. Work ethic…

Q: Some criticize the accounting profession for using expressions in the audit report that seem to be…

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Q: Analyze each of the following situations below and provide your assessment of the potential…

A: An auditor is a person who is authorized to assess and verify the accuracy of financial papers, as…

Q: Which statement is FALSE?

A: ANSWER The Second Statement is FALSE As it establishes a mutuality of interest between KPMG and the…

Q: Please summarize tthings that CPAs can do to limit their liability and prevent lawsuit

A: CPAs are certified public accountants. In other words they are licensed accounting professionals who…

Q: According to the AICPA Code of Professional Conduct, which of the following actions will impair…

A: AICPA code of professional gives the specified code of conduct, ethical practice, and outlines the…

Q: Each of the following situations involves possible violations ofthe AICPA Code of Professional…

A: The audit firm of Miller and Yancy, CPAs, has joined an association of other CPAfirms across the…

Q: What are the concepts of legal responsibility applicable to the accountant in his audit functions…

A: Legal Responsibility of Auditor: Every day, more and more people are becoming concerned about the…

Q: If either party fails to perform their contractual obligations according to the contract terms, it…

A: Auditing refers to the examination of the financial records of a business organization to verify the…

Q: A number of cases have considered the auditor’s liability in relation to persons other than the…

A: Generally, it is considered that the auditor's liability in relation to person other than the…

Q: Discuss how each of the following could affect independence of mind and independence in appearance,…

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Q: How would an auditor communicate  known there are violations of the law and the auditor's…

A: Audit is the process in which auditor independently examined the financial information of any type…

Q: Roger Royce, CPA, has encountered a situation that he thinks may pose a threat to his independence…

A: Independence: Independence assures auditors have no financial interest in audited businesses. An…

Q: What does “conflicting out an expert” mean? a. Firing an expert due to a conflict of interest b. The…

A: When the investigation of financial manipulation or fraud is done, it is called forensic accounting,…

Q: What factors should auditors consider in deciding whether to accept or continue the engagement with…

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Q: How should a successor auditor respond to a client's refusal to permit communication with the…

A: Inquiry of the predecessor auditor is a necessary procedure because the predecessor auditor may be…

Q: he communications between CPAs and their clients are privileged under federal law. True or False

A: Auditing means the inspection of financial accounts of the company to determine if the records are…

Q: Question 6 Which of the following is an example of an "Advocacy" threat to compliance with which of…

A: Auditing refers to the evaluation of companies' books of accounts and financial reports prepared by…

Q: The scope of an audit is not restricted when an attorney letter limits the response toa. Matters to…

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Q: Do you believe that the SEC should prohibit auditors from providing all nonaudit services for audit…

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: What defenses are available to auditors against suits brought by clients under common law? Against…

A: Under common law, clients can bring suits against the auditors and there are various defenses…

Q: Define the obligations of auditors in the event that a client fails to comply with applicable laws…

A: Report of the auditor: An auditor's report is a formal document created by an auditor. The auditor…

Q: What are the responsibilities of (a) client management, (b) auditors, and (c) the client’s…

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Q: Distinguish between the legal concepts of actually foreseen third-party users and reasonably…

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Q: Discuss why many CPA firms have willingly settled lawsuits outof court. What are the implications to…

A: CPA firm are the firms which are certified and licensed by the state in which they operate. These…

Q: Has the accounting profession created a situation in which auditors’ ethical behavior is impaired by…

A: Legal liability of an auditor is to give a proper audit report to his clients by keeping his ethical…

Q: Explain when exculpatory agreements, agreements involving the commitment of a tort, and agreements…

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Q: What are the implications of the cautious person notion for the auditor's legal responsibility?

A: This question explains about the implications of the cautious person notion for the auditor's legal…

Q: Analyze what to do if an attorney refuses to share information that falls within the attorney's…

A: This question explains about the attorney's purview and directly impacts the financial reporting.