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Lisa MaugansAcct 555 Week 2 HomeworkJanuary 13, 2016MULTIPLE CHOICE QUESTIONS FROM CPA EXAMINATIONS4-18 (Objective 4-6)The following questions concern independence andthe Code of Professional Conductor GAAS. Choose the best response.a.What is the meaning of the generally accepted auditing standardthat requires the auditor be independent?X(1)The auditor must be without bias with respect to the client under audit.(2)The auditor must adopt a critical attitude during the audit.(3)The auditor’s sole obligation is to third parties.(4)The auditor may have a direct ownership interest in the client’s business if it is not material.b.The independent audit is important to readers of financial statements because itc.An auditor strives to achieve independence in appearance toX(1)1
Lisa MaugansAcct 555 Week 2 HomeworkJanuary 13, 20164-19 (Objective 4-7)The following questions concern possible violationsof the AICPA Code of Professional Conduct. Choose the best response.a.In which one of the following situations would a CPA be in violation of the AICPA Code of Professional Conductin determining the audit fee?b.The AICPA Code of Professional Conductstates that a CPA shall not disclose any confidential information obtained in the course of a professional engagement except with the consent of the client. In which one of the following situations would disclosure by a CPA be in violation of the code?(1)Disclosing confidential information in order to properly discharge the CPA’s responsibilities in accordance with the profession’s standards.(2)Disclosing confidential information in compliance with a subpoena issued by a court.X(3)Disclosing confidential information to another accountant interested in purchasing the CPA’s practice.(4)Disclosing confidential information during an AICPA authorized peer review.