Lecture 1 – Chapter 1 all

Requires a an understanding of ethical

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Unformatted text preview: theory that considers actions or behavior according to the consequences of that behavior b) A theory that implies that an action is right because of the process rather than its outcome c) A theory which stresses the ability of a person to act morally based on his or her character d) A view where moral values are relative to a particular environment Q 8. The fundamental principles of professional conduct applicable to all professional accountants include: a) Public interest, integrity, objectivity and confidentiality b) Professional competence and due care, professional behavior and independence c) Both a and b d) Public interest, integrity, objectivity, confidentiality, staffing levels and fee structures Q 9. In auditing opinion shopping occurs when: a) An auditor changes an unrealistically low fee to gain new clients b) An auditor is asked to give a written opinion on a situation from a party who is not yet a client c) Auditors are appointed for a fixed tem and they cannot be removed from office d) A client hires external expertise in the discharge of organizational functions Q 10. To ensure objectivity of deliberations committee members on the professional committees, the National Disciplinary Committee and the National Appeals Committee, must: a) Serve on only one of these committees at any one time b) Have been a follow of the ICAA for at least ten years c) Serve on both Committees simultaneously d) a and b Q 11. ‘Low- balling’ refer to: a) A cricket match between audit firms b) An audit firm charging low audit fees to gain market share c) The process of negotiating the audit fee with the client d) a and b Q 12. What is the essence of the difference between a ‘professional from a ‘non- professional’ culture? a) Professionals generally earn higher salaries b) Non- professionals do not have community sanction or ethical codes c) A professional provides a service to society as a social good to benefit the community d) Because professionals have a monopoly over a body of knowledge, they are required to be monitored by the government Q 13. How are auditors normally appointed to audit a public company? a) By directors on behalf of the shareholders b) By a committee of shareholders c) By bing selected by the financial controller f...
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This document was uploaded on 09/17/2013.

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