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- Economics (a) Which would you choose as the priority for ethical behaviour in the accounting profession: “protect the public interest” or “protect the credibility of the profession?” Explain, providing an example. (b) Explain the affiliation between the fiduciary relationship and conflict of duties when a professional accountant provides a service to a client. Provide an example34) Which threat may occur as a result of the financial or other interests of a professional accountant or of an immediate or close family member? a) Familiarity threats b) Self-review threats c) Advocacy threats d) Self-interest threatsWhat is the law that protects investors from fraudulent financial accounting activity? FASB SACS SOX CPAS
- Why do accountants have to be ethical in their duties and responsibilities?How does an accounting professional's commitment to the firm, the profession, and to colleagues influence whether he/she will blow the whistle on financial wrongdoing? What other factors, related to organizational culture, could contribute to whether or not a professional decides to blow the whistle on a financial wrongdoing?Which of the following circumstances may create intimidation threats? a) Threat of dismissal or replacement of the member, or a close or immediate family member, over a disagreement about the application of an accounting principle or the way in which financial information is to be reported b) Being responsible for the employing organisation’s financial reporting when an immediate or close family member employed by the entity makes decisions that affect the entity’s financial reporting c) A dominant personality attempting to influence the decision making process for example the application of an accounting principle. d) Participating in incentive compensation arrangements offered by the employing organisation Only a) and b) Only a) Only a) , b) and c) Only a) and c)
- When a CPA knows that a tax client has skimmed cash receipts and not reported the incomein the federal income tax return but signs the return as a CPA who prepared the return, theCPA has violated which of the following AICPA rules of conduct?a. The Confidential Client Information Rule.b. The Integrity and Objectivity Rule.c. The Independence Rule.d. The Accounting Principles RuleWhich of the following acts by a CPA would be most likely to be a violation of the AICPA Code of Professional Conduct? Select one: A “covered member” owns an immaterial amount of stock in an audit client. Accepting a fee in a tax matter that is contingent upon the result of an administrative proceeding. Assisting a client in preparing a financial forecast. Forming a professional corporation to practice as a CPA.Which of the following is not an external user of a business’s financial information? Taxing authorities Customers Employees Investors
- According to the Code of Professional Conduct of the AICPA, for which type of service may a CPA receive a contingent fee? O Performing an audit of a financial statement. O Performing a review of a financial statement. O Performing an examination of a prospective financial statement. O Seeking a private letter ruling.Which of the following places more pressure on ethics officers to monitor financial and sales reporting? A B с D E Sarbanes-Oxley Act Federal Sentencing Guidelines for Employees Ethics Officer Responsibility Act Sherman Antitrust Act Enron Financial Responsibility Act
