ACCT 4346 FINAL REVIEW PAPER 2026
COMPLETE QUESTIONS AND SOLUTIONS
GRADED A+
◉Section 0.300 Principles of Professional Conduct. Answer:
◉Section 100.010.08-100.010.016 Threats. Answer:
◉.10 adverse interest threat. Answer: the threat that a member will
not act with objectivity because the member's interests are opposed
to the client's interests
ex) client has expressed intention to commence litigation against
member, client participates in litigation against firm, asserts a claim
against firm for recovery of insurance payments made to client, class
action lawsuit is filed against client and firm
◉.11 advocacy threat. Answer: threat that a member will promote
the client's interests or position to the point the objectivity or
independence is compromised
,ex) member provides forensic accounting services to client in
litigation or a dispute with third parties, firm acts as an investment
advisor for client, firm underwrites or promotes a client's shares,
member endorses client's services or products, firm acts as a
registered agent for client
◉.12 familiarity threat. Answer: threat that due to a long or close
relationship with a client, a member will become too sympathetic to
the client's interests or too accepting of their work or product
ex) member's family or friend is employed by client, a former
employee joins the client in key position and has knowledge of firms
policies and practices for the professional services engagement,
senior personnel have a long association with client, member has a
significant close business relationship with client
◉Rules Section 1.100 integrity and objectivity rule. Answer:
member shall maintain objectivity and integrity, shall be free of
conflicts of interest, and shall not knowingly misrepresent facts or
subordinate his judgment to others
◉Rules Section 1.200 independence rule. Answer: member shall be
independent in the performance of professional services
,◉Rules Section 1.300 general standards rule. Answer: -professional
competence, due professional care, adequately plan and supervise
performance, obtain sufficient relevant data for conclusions
◉Rules Section 1.400 acts discreditable rule. Answer: member shall
not commit acts discreditable to the profession; anti discrimination,
harassment,
◉Rules Section 1.700 confidential information. Answer: shall not
disclose any confidential info without consent
◉corporate culture. Answer: -set of values, norms, and artifacts,
including ways of solving problems shared by organizational
members
-shared belief managers have about how they should manage and
conduct business
-gives organizational members meaning and sets internal rules of
behavior
-formal (statements of values, beliefs, customs: manuals, memos,
codes) or informal (dress codes, promotions, extracurriculars)
◉sarbanes oxley 404 compliance section. Answer: -includes
assessment of effectiveness of controls by management and external
auditors
-forces firms to adopt values that make up culture
, -requires cultural change, not just accounting change
◉.13 management participation threat. Answer: threat that a
member will take on the role of client management or otherwise
assume management responsibilities, such may occur during an
engagement to provide nonattest services
◉.14 self interest threat. Answer: threat that a member could
benefit financially or otherwise from an interest in or relationship
with a client
ex)member has financial interest in client, member's spouse enters
employment negotiations with client, firm enters into a contingent
fee arrangement for a tac refund claim that is not a predetermined
fee, excessive reliance exists on revenue from a single client
◉.15 self review threat. Answer: threat that a member will not
appropriate evaluate the results of a previous judgement made or
service performed or supervised by the member and they will rely
on that service in forming a judgment as part of another service
ex)member relies on work product of member's firm, member
performs bookkeeping services for a client, partner in members
office was associated with client
COMPLETE QUESTIONS AND SOLUTIONS
GRADED A+
◉Section 0.300 Principles of Professional Conduct. Answer:
◉Section 100.010.08-100.010.016 Threats. Answer:
◉.10 adverse interest threat. Answer: the threat that a member will
not act with objectivity because the member's interests are opposed
to the client's interests
ex) client has expressed intention to commence litigation against
member, client participates in litigation against firm, asserts a claim
against firm for recovery of insurance payments made to client, class
action lawsuit is filed against client and firm
◉.11 advocacy threat. Answer: threat that a member will promote
the client's interests or position to the point the objectivity or
independence is compromised
,ex) member provides forensic accounting services to client in
litigation or a dispute with third parties, firm acts as an investment
advisor for client, firm underwrites or promotes a client's shares,
member endorses client's services or products, firm acts as a
registered agent for client
◉.12 familiarity threat. Answer: threat that due to a long or close
relationship with a client, a member will become too sympathetic to
the client's interests or too accepting of their work or product
ex) member's family or friend is employed by client, a former
employee joins the client in key position and has knowledge of firms
policies and practices for the professional services engagement,
senior personnel have a long association with client, member has a
significant close business relationship with client
◉Rules Section 1.100 integrity and objectivity rule. Answer:
member shall maintain objectivity and integrity, shall be free of
conflicts of interest, and shall not knowingly misrepresent facts or
subordinate his judgment to others
◉Rules Section 1.200 independence rule. Answer: member shall be
independent in the performance of professional services
,◉Rules Section 1.300 general standards rule. Answer: -professional
competence, due professional care, adequately plan and supervise
performance, obtain sufficient relevant data for conclusions
◉Rules Section 1.400 acts discreditable rule. Answer: member shall
not commit acts discreditable to the profession; anti discrimination,
harassment,
◉Rules Section 1.700 confidential information. Answer: shall not
disclose any confidential info without consent
◉corporate culture. Answer: -set of values, norms, and artifacts,
including ways of solving problems shared by organizational
members
-shared belief managers have about how they should manage and
conduct business
-gives organizational members meaning and sets internal rules of
behavior
-formal (statements of values, beliefs, customs: manuals, memos,
codes) or informal (dress codes, promotions, extracurriculars)
◉sarbanes oxley 404 compliance section. Answer: -includes
assessment of effectiveness of controls by management and external
auditors
-forces firms to adopt values that make up culture
, -requires cultural change, not just accounting change
◉.13 management participation threat. Answer: threat that a
member will take on the role of client management or otherwise
assume management responsibilities, such may occur during an
engagement to provide nonattest services
◉.14 self interest threat. Answer: threat that a member could
benefit financially or otherwise from an interest in or relationship
with a client
ex)member has financial interest in client, member's spouse enters
employment negotiations with client, firm enters into a contingent
fee arrangement for a tac refund claim that is not a predetermined
fee, excessive reliance exists on revenue from a single client
◉.15 self review threat. Answer: threat that a member will not
appropriate evaluate the results of a previous judgement made or
service performed or supervised by the member and they will rely
on that service in forming a judgment as part of another service
ex)member relies on work product of member's firm, member
performs bookkeeping services for a client, partner in members
office was associated with client
