Professional Responsibilities Flashcards
All members, whether or not in public practice, must act with:
Integrity and Objectivity
A CPA must be independent only when
conducting auditing activities
Are adult children still able to create a conflict of interest?
Yes, children do not need to be dependent for there to be a conflict of interest.
GAAS, or generally accepted accounting principles, are pronouncements issued by
the ASB (accounting standards board)
The only 2 reasons confidential client data can be turned over:
1) valid court order
2) quality review by state CPA Society
Where can someone claim accountant client privileges?
Only in states that have a statute creating that privilege
Is it acceptable to provide for a right of contribution from the client in an audit engagement letter?
Yes, it is NOT discreditable to do that.
Do you need client permission to provide audit documentation to a surviving partner?
No, you do not need client permission
Should you disclose client information when client receives a letter from the IRS?
No, a letter from the IRS is not enough to warrant disclosure of confidential client information.
Who can a CPA charge a commission?
Non-audit clients if commission is disclosed.
Attest firms must have how much CPA membership?
A majority
If a CPA is invested in a 3rd party, when is there an independence problem?
If the CPA controls the 3rd party
An accounting firm name can include the following:
1) names of past owners
2) fictitious names
3) must not be misleading
When May an auditor communicate audit deficiencies?
Either during or up to 60 days after an audit
What does scope paragraph of a forecast examination state?
Assumptions are reasonable have been disclosed, and have been followed. And that financial statements follow official guidelines for presentation
