An audit of prospective financial information no yes

An audit of prospective
financial information
No Yes
Answer: B
Terms: Commissions
Diff: Moderate
Objective: LO 4-7
AACSB: Ethical understanding and reasoning abilities
31

6) The AICPA's Code of Professional Conduct states that a CPA should maintain integrity and
objectivity. The term "objectivity" in the Code refers to a CPA's ability to:
D
Terms: AICPA Code of Professional Conduct; Objectivity
Diff: Moderate
Objective: LO 4-7
AACSB: Ethical understanding and reasoning abilities
7) Which of the following is required for a firm to designate itself "Member of the American
Institute of Certified Public Accountants" on its letterhead?
B
Terms: Members of the AICPA requirements
Diff: Moderate
Objective: LO 4-7
AACSB: Ethical understanding and reasoning abilities
8) CPAs are prohibited from which of the following forms of advertising?
D
Diff: Challenging
Objective: LO 4-7
AACSB: Ethical understanding and reasoning abilities
9) Which of the following would be considered a violation of the AICPA Code of Conduct?
A) The CPA makes the audit files available to the client's bank without the permission of the
client.
B) The CPA firm charges a contingent fee for nonattestation services to a client for whom he
does not perform any attestation services.
C) The CPA firm takes a prospective client to lunch to discuss auditing services.
D) A CPA firm uses the name San Diego Tax Specialists.
Answer: A
Terms: Code of ethics
Diff: Moderate
Objective: LO 4-7
AACSB: Ethical understanding and reasoning abilities
32

10) Rule 301 of the AICPA's Code of Professional Conduct requires CPAs to maintain the
confidentiality of client information. This rule would be violated if a CPA disclosed information
without a client's consent as a result of a:
D
Terms: Confidentiality
Diff: Moderate
Objective: LO 4-7
AACSB: Ethical understanding and reasoning abilities