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WEEK 2– HOMEWORK 4-18 (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?(1)The auditor must be without bias with respect to the client under audit.b.The independent audit is important to readers of financial statements because it(3)involves the objective examination of and reporting on management-prepared statements.c.An auditor strives to achieve independence in appearance to(1)maintain public confidence in the profession.4-19 (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?DISCUSSION QUESTIONS AND PROBLEMS
4-20 (Objectives 4-5, 4-6)The following situations involve the provisionof nonaudit services. Indicate whether providing the service is a violation of AICPA rules or SEC rules including Sarbanes–Oxley requirements on independence. Explain your answer as necessary.a.Providing bookkeeping services to a public company. The services were preapproved by the audit committee of the company. b. Providing internal audit services to a public company that is not an audit client. c.Implementing a financial information system designed by management for a private company.d. Recommending a tax shelter to a client that is publicly held. The services were preapproved by the audit committee.