AUDITING+ASSURANCE 12MONTH ACCESS CARD
17th Edition
ISBN: 9780135635131
Author: ARENS
Publisher: WILEY
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Question
Chapter 2, Problem 1RQ
To determine
Describe the important characteristics of the organization and conduct of CPA firms that allows them for fulfilling the social functions competently and independently.
Expert Solution & Answer
Explanation of Solution
The following are three important characteristics:
- Organizational form: To avoid the employer-employee relationship with the clients the CPA firms are existing as the separate entities. This firm employs one person as a professional staff of sufficient size for preventing one client from constituting an important portion of its total income and thereby endangering the independence of the firm.
- Conduct: For providing a broad range of expertise, continuing education and to promote the professional independent attitude and competence, the CPA employs a professional staff for the particular groups.
- Peer Review: This helps in evaluating the performance of CPA firm in order to keep the competence high.
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Chapter 2 Solutions
AUDITING+ASSURANCE 12MONTH ACCESS CARD
Ch. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - Prob. 3RQCh. 2 - Prob. 4RQCh. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - Prob. 10RQ
Ch. 2 - Prob. 11RQCh. 2 - State what is meant by the term peer review. What...Ch. 2 - Prob. 13.1MCQCh. 2 - Prob. 13.2MCQCh. 2 - Prob. 13.3MCQCh. 2 - Prob. 14.1MCQCh. 2 - Prob. 14.2MCQCh. 2 - Prob. 14.3MCQCh. 2 - Prob. 15.1MCQCh. 2 - Prob. 15.2MCQCh. 2 - Prob. 15.3MCQCh. 2 - Prob. 16DQPCh. 2 - Prob. 17DQP
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Similar questions
- should corporate governance practices be included as part of legislation or is it preferable to allow organisations to self-regulate and hence, choose their own suitable corporate governance practices and structures?arrow_forwardDo firms have any responsibilities to society atlarge?arrow_forwardState the allowable forms of organization a CPA firm may assume.arrow_forward
- Which of the following terms can be defined as "the shared experiences, stories, beliefs, and norms that characterize an organization"? a business mission corporate culture customer relationships an ethical/value statement organizational dynamicsarrow_forwardExplain the reasons for the need of corporate governance codearrow_forwardDemonstrate your understanding of the strategies a company may deploy to establish, manage and regain legitimacy within the confines of Legitimacy Theoryarrow_forward
- What is business ethics?arrow_forwardEntity-level controls support broad organizational objectives while direct controls support objectives at the transactional level. What is a way that internal controls support an organization's transactional objectives? a. preserving shareholders' or stakeholders' interests b. promoting operational efficiency & effectiveness c. ensuring regulatory & legal compliance d. protecting & safeguarding assetsarrow_forwardBusiness is a sub- system of Society‟. Which of the following option supports this claim? Choose correct answer a. Corporate Social Responsibility. b. Corporate Governance. c. Governing Principles. d. Ethics.arrow_forward
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