Quizlet in which of the following situations would a CPA be considered independent

Answer (C) is correct.
The Independence Rule states, "A member in public practice shall be independent in the performance of professional services as required by standards promulgated by bodies designated by Council." The scope of services addressed is broader than the expression of opinions on financial statements. Thus, it applies to such professional services as reviews, reports on prospective financial information, and reports on other attestation engagements.

The AICPA Code of Professional Conduct contains both general ethical principles that are aspirational in character and also a
A. List of violations that would cause the automatic suspension of a member's license.
B. Set of specific, mandatory rules describing minimum levels of conduct a member must maintain.
C. Description of a member's procedures for responding to an inquiry from a trial board.
D. List of specific acts discreditable to the profession.

Answer (B) is correct.
The AICPA Code contains Principles and Rules. The principles are goal-oriented. The rules provide more specific guidance. The principles call for an unswerving commitment to honorable behavior but are not mandatory. The AICPA bylaws require members to adhere to the rules. Those who fail to comply with the rules may face disciplinary action.

Answer (D) is correct.
The Code previously included two rules regarding colleagues, but they were deleted after threats of antitrust actions against the profession by the Federal Trade Commission and the U.S. Justice Department. The principles express the profession's recognition of its responsibilities to colleagues as well as to the public and clients, but adherence to them is not mandatory.

Question: 7
*When management refuses to disclose material noncompliance with laws and regulations identified by the independent auditor, the independent auditor may be charged with violating the AICPA Code of Professional Conduct for*
A. Disclaiming an opinion.
B. Withdrawing from the engagement.
C. Failing to uncover the illegal activities during prior audits.
D. Reporting these activities to those charged with governance.

Answer (A) is correct.
When the auditor concludes that noncompliance is material and has not been appropriately disclosed or accounted for, a normal disclaimer of opinion is not suitable. The auditor should disclose the problem in a report that includes either a qualified or an adverse opinion. If management or those charged with governance do not accept a modified opinion, the auditor may withdraw from the engagement. Moreover, the auditor may, in some circumstances, have a duty of disclosure outside the entity, e.g., in a report to the SEC on Form 8-K or in a response to a subpoena. The Private Securities Litigation Reform Act of 1995 also may apply.

Question: 3
Which of the following statements best explains why the CPA profession has found it essential to establish ethical standards and means for ensuring their observance?
A. A distinguishing mark of a profession is its acceptance of responsibility to the public.
B. A requirement for a profession is to establish ethical standards that stress primarily a responsibility to clients and colleagues.
C. Ethical standards that emphasize excellence in performance over material rewards establish a reputation for competence and character.
D. Vigorous enforcement of an established code of ethics is the best way to prevent unscrupulous acts.

Answer (A) is correct.
According to the Principles section of the AICPA Code of Professional Conduct, "Members should accept the obligation to act in a way that will serve the public interest, honor the public trust, and demonstrate commitment to professionalism. A distinguishing mark of a profession is acceptance of its responsibility to the public."

Question: 6
CPAs are required to complete engagements competently. Competence includes all of the following except
A. An unbiased mental attitude.
B. The technical qualifications of the CPA's staff.
C. The capacity to exercise judgment.
D. The ability to research subject matter and consult with others.

Question: 8
*Audit engagement team members should remain alert for evidence of noncompliance with which of the following relevant ethical requirements?*
A. Maintaining a suspicious attitude, presuming that the client is dishonest until evidence proves otherwise.
B. Performing professional responsibilities with the highest sense of integrity.
C. Performing audit procedures efficiently and within expected time budgets.
D. Maintaining confidentiality of client information by not including it in the audit documentation.