Question #1 (AICPA.080977REG-1C) | | | (NOTE: This is a CPAexcel simulated Exam Question, not AICPA licensed Material) Tax preparer Margie is wondering: Why should CPAs make reasonable efforts to obtain and provide for the client appropriate answers to all questions on a tax return? | A. The question may be important in determining taxable income or loss, so its omission may detract from the quality of the return. | | B. The CPA is obligated to sign the preparer's declaration, which
Words: 2767 - Pages: 12
Audit and Assurance Services Chapter 1 1 Learning Objectives 1. What is auditing? Distinguish between auditing and accounting. Importance of auditing in reducing information risk. 2. Distinguish audit services from other assurance and non-assurance services provided by CPAs. 3. Three main types of audits. 4. How to become a CPA? Identify the primary types of auditors. 2 What is auditing? Evaluating 3 Nature of Auditing Auditing is the
Words: 2208 - Pages: 9
Assignment 2: Litigation, Censures, and Fines Tracy Cranden Professor Slater ACC 499 Due: August 25, 2014 1. Analyze the primary accounting issues which form the crux of the litigation or fine for the firm, and indicate the impact to the firm as a result of litigation or fine. Provide support for your rationale. Ernst & Young was fined $2 million to settle charges relating to audits conducted for Medicis in 2005, 2006, and 2007. The primary issue that made this case arise was Ernst
Words: 1048 - Pages: 5
the purchase accounting for the merger. B.52 Other Responsibilities and Practice Cases (refer to Rule 301 and 502 of the AICPA professional code, pages 610-611 and 613-614 – There is no need to read the entire Module B). Read the following cases. For each, state whether the action or situation shows a violation or potential violation of the AICPA Code of Professional Conduct; if so, explain why an cite the relevant role or interpretation. a. CPA Ron Stout completed a review of the unaudited
Words: 511 - Pages: 3
his or her objectivity and to support user reliance on the financial reporting process and to enhance capital market efficiency. However, it is not that simple to be ethical in public accounting profession. According to AICPA Code of Professional Conduct, there are mainly five potential threats to auditor independence: intimidation threat, self-interest threat, self-review threat, advocacy threat and familiarity threat. In my opinion, intimidation threat and familiarity threat are the
Words: 619 - Pages: 3
textbook Financial Accounting, “General Accepted accounting principles (GAAP) have substantial authoritative support. The American Institute of Certified Public Accountants (AICPA’s) code of professional conduct requires that members prepare financial statements in accordance with GAAP. Specifically rule 203 of this code prohibits a member from expressing an unqualified opinion for financial statements that contain a material departure from general accepted accounting principles” (Kimmel, Weygandt &
Words: 1040 - Pages: 5
made the transactions hard to find, making WorldCom look profitable when it was not. Several conflicts occurred between WorldCom’s accounting department and the AICPA. The individuals involved, failed to follow the rules and regulations of the AICPA. Cynthia Cooper followed every aspect of the AICPA Professional Code of Conduct. She went to Scott Sullivan to see what he thought about what was happening. She made sure to keep the best interest of the public and the company in mind when she
Words: 1481 - Pages: 6
section 150.) Source: SAS No. 95; SAS No. 98; SAS No. 102; SAS No. 105; SAS No. 113. Effective for audits of financial statements for periods beginning on or after December 15, 2001, unless otherwise indicated. .01 An independent auditor plans, conducts, and reports the results of an audit in accordance with generally accepted auditing standards. Auditing standards provide a measure of audit quality and the objectives to be achieved in an audit. Auditing procedures differ from auditing standards
Words: 1607 - Pages: 7
The purpose of this memo is to help explain why a subsidiary would be set up as a corporation. When looking into deferred taxes, it is imperative to look into what the Financial Accounting Standards Board (FASB) has to say about the subject. " deferred tax liability is recognized for temporary differences that will result in net taxable amounts in future years." ("Financial Accounting Standards Board," n.d.). More simply stated deferred tax is a tax that is paid at a later period (ex. income
Words: 1198 - Pages: 5
potential investors and creditors- they use different approaches to achieve this goal. GAAP was created by the Financial Accounting Standards Board (FASB) in 1973. It was created to work in accordance with the AICPA (American Institute of Certified Public Accountants) Code of Professional Conduct,
Words: 1422 - Pages: 6
