Chap003 - Chapter 03 Professional Ethics Chapter 03...

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Chapter 03 - Professional Ethics Chapter 03 Professional Ethics True / False Questions 1. The Rules portion of the AICPA Code of Professional Conduct must be followed by only those members in private practice. True False 2. The AICPA Code of Professional Conduct derives its authority from the Bylaws of the AICPA. True False 3. An immaterial loan from the CPA to an officer of a client impairs the independence of the CPA. True False 4. Financial interests of a CPA's nondependent children are attributed directly to the CPA. True False 5. Statements on Accounting and Review Services are enforceable under the AICPA Code of Professional Conduct. True False 6. CPAs may not advertise as to any special expertise other than in accounting, auditing, and tax. True False 7. A CPA may receive a commission for recommending a particular computer system to an audit client. True False 3-1
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Chapter 03 - Professional Ethics 8. The communications between CPAs and their clients are privileged under federal law. True False 9. CPAs can advertise the fees only for their nonattest services. True False 10. The American Institute of Certified Public Accountants has been the primary source for ethical rules for internal auditors. True False Multiple Choice Questions 11. ABC Company is audited by the Phoenix office of Willingham CPAs. Which of the following individuals would be least likely to be considered a "covered member" by the independence standard? A. Staff assistant on the audit. B. An audit partner in the Eloi office. C. A tax partner in Phoenix who performs no attest services for ABC Company or for any other clients. D. The partner in charge of Willingham CPAs (she does no work on the ABC Company Audit). 12. Which of the following statements is true with respect to the PCAOB and SEC's concept of independence when an auditor both prepares financial statements and audits those financial statements for a client? 3-2
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Chapter 03 - Professional Ethics
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