Study Unit 2 Questions
UNIT 2- Professional Responsibilities
Multiple Choice Quiz 1 A CPA’s retention of client-provided records as a means of enforcing payment of an overdue audit fee is an action that is | | | Prohibited under the AICPA Code of Professional Conduct. | | A violation of GAAS. | | Not addressed by the AICPA Code of Professional Conduct. | | Acceptable if sanctioned by state law. | |
Smith, CPA, is a partner of Johnson Accounting Firm. Johnson audited the books of Hometown Bank. Smith’s independence would be impaired under which of the following circumstances? | | | Smith had an account with Hometown Bank 2 years ago. | | Smith has a collateralized automobile loan with Hometown Bank. | | Smith is a director of Hometown Bank. | | Smith and a Hometown Bank board member belong to the same church. | |
Conduct Rule 501 states that a member of the AICPA shall not commit ani to the profession. Which of the following most likely is not considered such an act? | | | Retention of client-provided records after a demand is made for them in a state that specifically grants the CPA a lien on all client records. | | After the relationship of a nonowner member with the firm is terminated, the member takes copies from the firm’s client files without permission. | | Failure to provide the client with client records prepared by the member. | | Withholding as a result of nonpayment of fees for a completed engagement adjusting and closing journal entries not reflected in the client’s books. | | According to Conduct Rule 102, Integrity and Objectivity, a member of the AICPA | | | Is subject to Rule 102 when engaged in teaching but not research. | | Who has a dispute with his/her supervisor about recording of transactions has no obligation to act even if the supervisor’s position is not an acceptable alternative. | | Has no obligation to respond to inquiries by his/her employer’s external accountant. | | Who
Multiple Choice Quiz 1 A CPA’s retention of client-provided records as a means of enforcing payment of an overdue audit fee is an action that is | | | Prohibited under the AICPA Code of Professional Conduct. | | A violation of GAAS. | | Not addressed by the AICPA Code of Professional Conduct. | | Acceptable if sanctioned by state law. | |
Smith, CPA, is a partner of Johnson Accounting Firm. Johnson audited the books of Hometown Bank. Smith’s independence would be impaired under which of the following circumstances? | | | Smith had an account with Hometown Bank 2 years ago. | | Smith has a collateralized automobile loan with Hometown Bank. | | Smith is a director of Hometown Bank. | | Smith and a Hometown Bank board member belong to the same church. | |
Conduct Rule 501 states that a member of the AICPA shall not commit ani to the profession. Which of the following most likely is not considered such an act? | | | Retention of client-provided records after a demand is made for them in a state that specifically grants the CPA a lien on all client records. | | After the relationship of a nonowner member with the firm is terminated, the member takes copies from the firm’s client files without permission. | | Failure to provide the client with client records prepared by the member. | | Withholding as a result of nonpayment of fees for a completed engagement adjusting and closing journal entries not reflected in the client’s books. | | According to Conduct Rule 102, Integrity and Objectivity, a member of the AICPA | | | Is subject to Rule 102 when engaged in teaching but not research. | | Who has a dispute with his/her supervisor about recording of transactions has no obligation to act even if the supervisor’s position is not an acceptable alternative. | | Has no obligation to respond to inquiries by his/her employer’s external accountant. | | Who