ACCT 444 Week 1 Quiz

Securities and Exchange Commission
Public Company Accounting Oversight Board
Auditing Standards Board
National Association of Accounting

Proper planning and supervision
Independence of mental attitude
Adequate training and proficiency
Due professional care

Designing additional auditing procedures to obtain more reliable evidence in support of a particular financial statement assertion
Obtaining corroboration of management’s explanations through consultation with a specialist
Inquiring of prior year engagement personnel regarding their assessment of management’s honesty and integrity
Using third-party confirmations to provide support for management’s representations.

determine whether the financial statements fairly present the entity’s operations.
evaluate the feasibility of attaining the entity’s operational objectives.
make recommendations for improving performance.
report on the entity’s relative success in attaining profit maximization.

Tax services
Nonaudit services that are less than 5 % of total revenues from the audit client
Services provided by the auditor on a recurring basis
Nonaudit services related to internal control over financial reporting

Issuing a modified report explaining a failure to follow a governmental regulatory agency’s standards when conducting an attest service for a client
Revealing confidential client information during a quality review of a professional practice by a team from the state CPA society
Accepting a contingent fee for representing a client in an examination of the client’s federal tax return by an IRS agent
Retaining client records after an engagement is terminated prior to completion and the client has demanded their return

maintain public confidence in the profession.
be in a position to offer other services to the client.
comply with the generally accepted accounting principles.
maintain a biased mental attitude.

Spouse
Dependent child
Relative supported by the CPA
Sibling living in the same city as the CPA

An auditor may not draft an entity’s financial statements based on information from management’s accounting system.
The adoption of sound accounting policies is an implicit part of an auditor’s responsibilities.
An auditor’s responsibilities for audited financial statements are confined to the expression of the auditor’s opinion.
Making suggestions that are adopted about an entity’s internal control environment impairs an auditor’s independence.

Services related to confidential tax transactions
Tax services for officers of the issuer
Tax services for immediate family members of corporate officers
Tax planning services