Acc 555 Week 2

Topics: Audit, Auditing, Internal control Pages: 3 (636 words) Published: October 13, 2012
Week 2 Homework

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|Under SEC rules, your close family members include your spouse (or equivalent) and dependents and your parents, nondependent | |children, and siblings. If you are a covered person, your independence is affected if your close family member has an accounting | |role or financial reporting oversight role with the SEC Audit Client (for example, the family member is a treasurer, CFO, | |accounting supervisor, or controller) or owns more than 5 percent of a client’s equity securities or controls the client. In | |addition, independence is considered to be impaired if any partner’s close family member controls an SEC Audit Client. |

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A) 1
B) 2
C) 4

4-19
A) 2
B) 1
C) 3

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A) The AICPA independence rules requires members to adhere to more restrictive independence rules of other regulatory bodies, such as the SEC. It is not permissible for an audit firm to provide bookkeeping services too public company audit client under both SEC rules and he AICPA rules on independence. B) Such activity is permissible as long as the member does not perform management functions of make management decision. C) Such activity is permissible as long as the member does not perform management functions of make management decision. D) The SEC and PCAOB rules allow CPA’s to provide tax services for audit client, except or tax services for company executives who oversee financial reporting, and tax avoiding planning services. E) The Sarbanes-Oxley Act further requires the audit committee of a public company to be responsible for the appointment , compensation and oversight of the work f the auditor. They are responsible for oversight of the work of the auditor, including resolution of disagreement involving financial reporting. This provision increases the independence and role on the audit committee. F) The AICPA permit’s a CPA firm to do bookkeeping for a private company .

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A) Rule 102
B) Rule 201
C) Rule...
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