Auditing: A Risk Based-Approach (MindTap Course List)
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN: 9781337619455
Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher: Cengage Learning
Question
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Chapter 1, Problem 30RQSC

a.

To determine

Concept Introduction: AICPA has issued a code of professional conduct which helps the auditors and AICPA members in the performance of their professional duties. This list contains codified statements that can guide auditors in maintaining their professional and ethical conduct.

The principle or rule violated in the given scenario.

b.

To determine

Concept Introduction: AICPA has issued code of professional conduct which helps the auditors and AICPA members in the performance of their professional duties. This list contains codified statements that can guide auditors in maintaining their professional and ethical conduct.

The principle or rule violated in the given scenario.

c.

To determine

Concept Introduction: AICPA has issued code of professional conduct which helps the auditors and AICPA members in the performance of their professional duties. This list contains codified statements that can guide auditors in maintaining their professional and ethical conduct.

The principle or rule violated in the given scenario.

d.

To determine

Concept Introduction: AICPA has issued code of professional conduct which helps the auditors and AICPA members in the performance of their professional duties. This list contains codified statements that can guide auditors in maintaining their professional and ethical conduct.

The principle or rule violated in the given scenario.

e.

To determine

Concept Introduction: AICPA has issued code of professional conduct which helps the auditors and AICPA members in the performance of their professional duties. This list contains codified statements that can guide auditors in maintaining their professional and ethical conduct.

The principle or rule violated in the given scenario.

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Each of the following situations involves a possible violation ofthe AICPA Code of Professional Conduct. For each situation, state the applicable section ofthe rules of conduct and whether it is a violation.a. Emrich, CPA, provides tax services, management advisory services, and bookkeepingservices and also conducts audits for the same nonpublic client. Because the firm issmall, the same person often provides all the services.b. Franz Marteens is a CPA, but not a partner, with 3 years of professional experiencewith Roberts and Batchelor, CPAs. He owns 25 shares of stock in an audit client ofthe firm, but he does not take part in the audit of the client, and the amount of stockis not material in relation to his total wealth.c. A nonaudit client requests assistance of M. Wilkenson, CPA, in the installationof a local area network. Wilkenson had no experience in this type of work andno knowledge of the client’s computer system, so he obtained assistance from acomputer consultant. The…
Read the following cases. Required: For each case, select whether the action or situation shows a violation of the AICPA Code of Professional Conduct, and select the relevant rule. a. CPA Jerry Cheese became the new auditor for Python Insurance Company. Cheese knew a great deal about insurance accounting but had never conducted an audit of an insurance company. Consequently, Cheese hired CPA Tate Gilliam, who had six years of experience with the State Department of Insurance Audit. Gilliam managed the audit, and Cheese was the partner in charge. b. CPA Mackenzie Palin practices public accounting and is a director of Comedy Company. Palin's firm performs consulting and tax services for Comedy. Palin prepared unaudited financial statements on Comedy's letterhead and submitted them to First National Bank in support of a loan application. Palin's accounting firm received a fee for this service. c. CPA Ellery Idle audited the financial statements of Monty Corporation and gave an unmodified…

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Auditing: A Risk Based-Approach (MindTap Course List)

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