QUESTIONS - Code of Ethics

The provision of accounting and bookkeeping services

Info icon This preview shows pages 15–17. Sign up to view the full content.

93. The provision of accounting and bookkeeping services of a routine or mechanical nature to divisions or subsidiaries of listed audit clients would not be seen as impairing independence with respect to the audit client provided that the following conditions are met, except a. The services do not involve the exercise of judgment. b. The divisions or subsidiaries for which the service is provided are collectively immaterial to the audit client. c. The services provided are collectively immaterial to the division or subsidiary. d. The fees to the firm, or network firm, from such services are collectively significant. Preparing Accounting Records and Financial Statements – Emergency Situations 94. The provision of accounting and bookkeeping services to audit clients in emergency or other unusual situations, when it is impractical for the audit client to make other arrangements, would not be considered to pose an unacceptable threat to independence provided: a. The firm, or network firm, does not assume any managerial role or make any managerial decisions. b. The audit client accepts responsibility for the results of the work. c. Personnel providing the services are not members of the assurance team. d. All of the above. Valuation Services 95. If the valuation services involves the valuation of matters material to the financial statements and the valuation involves a significant degree of subjectivity, the self-review threat created (choose the incorrect one) 96. The following would not generally create a significant threat to independence, except a. When a firm, or a network firm, performs a valuation service for an audit client for the purposes of making a filing or return to a tax authority. b. The firm provides formal taxation opinions and assistance in the resolution of tax disputes to an audit client. c. The firm renders internal services involving an extension of the procedures required to conduct an audit in accordance with Philippine Standards on Auditing to an audit client. d. When the firm, or a network firm, provides assistance in the performance of a client’s internal audit activities or undertakes the outsourcing of some of the activities.
Image of page 15

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Page 16 of 21 Provision of IT Systems Services to Audit Clients
Image of page 16
Image of page 17
This is the end of the preview. Sign up to access the rest of the document.
  • Spring '10
  • Mr.Cula
  • Accounting, Accountant, Certified Public Accountant

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern