ACCT 4553 Ethics Final AICPA Questions Latest

ACCT 4553 Ethics Final AICPA Questions Latest Update - Actual Exam 60 Questions with 100% Verified Correct Answers Guaranteed A+ Verified by Professor

"We are thinking of hiring a manager into our technology consulting practice here in the Huntington Beach Office. For a brief time, she worked for an audit client of this office.During the time that she worked for the client, she acquired 10 shares of its stock, which she still owns. She will not work on the client's audit or be in a position to influence the audit; however, she will play an important part in a consulting project (non-attest service) which will probably take her about 40 hours to complete." Think about the various types of covered members, and then decide what response you would send regarding the question, "If we hire her as manager, would the investment impair independence?"

What response would you send regarding the question, "If we hire her as manager,

would the investment impair independence? - CORRECT ANSWER: - Yes. As a

manager who will provide greater than 10 hours of nonattest services to the client, she is a covered member and her financial interests in the client must be immediately disposed of

A new staff accountant obtains an automobile loan under normal terms and conditions from an audit client to purchase a BMW sports car. The car is material to his net worth; it is his net worth as is the amount borrowed. He is a covered member of the lender. Did

this loan impair independence? - CORRECT ANSWER: - No, because it is a fully

secured (collateralized) by the automobile

A tax partner obtained a personal loan from a business associate in 2010. In 2014, the business associate became a director of the partner's client, which is also an audit client

of the firm. Does this loan impair independence? - CORRECT ANSWER: - Probably;

because she is aware of the situation, the partner should evaluate the loans under the conceptual framework

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Alf & Company, CPA's decides to subcontract a portion of its tax return preparation work to Dee Howard (DH) Tax Preparation Services, an unaffiliated income tax service provider. What does Alf & Company need to do to outsource the tax work?

• Ensure that DH is current in its income tax obligations

II. Ensure that DH has appropriate controls in place to protect the confidentiality of the client data III. Disclose to the client that services may be performed by DH IV. Have a contractual agreement with DH to protect the confidentiality of client

information - CORRECT ANSWER: - II, III, and IV are required

All of the following must be done to "disassociate" with a client except: - CORRECT

ANSWER: - Performing a 3-year cooling off period from the client

As a CPA, I should especially maintain ______ and _______ when carrying out public

duties as it relates to conflicts of interest - CORRECT ANSWER: - Independence,

Objectivity

As a part of your work, you prepared several schedules relating to the client's investment trading activity. He now says he needs those schedules so that he can complete his tax return himself. Are you required to return those records? - CORRECT

ANSWER: - No, these are not considered client-provided records

As a professional CPA, I have the greatest responsibility to serve: - CORRECT

ANSWER: - The publics' interest

Can Hammond Electric (an SEC registrant) engage Jackson & Sons CPAs, its auditors, to perform information-technology-related services under the SEC's independence

rules? - CORRECT ANSWER: - Yes, if the services have no bearing on Hammond

Electric's financial reporting and related systems

Chris advises her tax client, Key Sporting Goods, to disclose a matter by attaching a special form to its corporate tax return. Key refuses and threatens to replace Chris with

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