AICPA ETHICS FINAL EXAM
PRACTICE QUESTIONS
,1. Any investment made by a covered member in an
investment club is consid- ered an indirect financial interest.
Therefore, if club investments are made in clients,
independence is impaired if the investment is considered
material.: F
2. According to the ACIPA Code of Conduct of conduct, " a
member who performs auditing, review, compilation,
management consulting, tax, or other professional services
must comply with standards created by the SEC.": F
3. The term immediate family member includes spouse,
whether or not depen- dent; spousal equivalent, whether or not
dependent; former spouse, if legally divorced; dependents,
whether or not related.: F
4. "Covered persons" include partners, principals,
shareholders, and employ- ees of the CPA firm who are on
the audit engagement.: T
, 5. The term "immediate family" includes a parent or sibling.:
F "immediate family" includes spouse, dependents.
6. An opinion based on an audit of financial statements is a
widely known form of attestation: T
7. The Sarbanes-Oxley Act of 2002 limits the engagement of
and concurring audit partners on an engagement to four-year
terms.: F 5 yrs
8. To be recognized as independent, the auditor must be free
from any oblig- ation to or interest in the client, its
management or its owners: T
9. A firm when acting as principal auditor is not required to
confirm the inde- pendence of another firm engaged to
perform segments of an engagement: F
10. A covered member who is a limited partner in a
partnership that invests in a client has a direct financial
interest in that client.: F indirect financial interest
PRACTICE QUESTIONS
,1. Any investment made by a covered member in an
investment club is consid- ered an indirect financial interest.
Therefore, if club investments are made in clients,
independence is impaired if the investment is considered
material.: F
2. According to the ACIPA Code of Conduct of conduct, " a
member who performs auditing, review, compilation,
management consulting, tax, or other professional services
must comply with standards created by the SEC.": F
3. The term immediate family member includes spouse,
whether or not depen- dent; spousal equivalent, whether or not
dependent; former spouse, if legally divorced; dependents,
whether or not related.: F
4. "Covered persons" include partners, principals,
shareholders, and employ- ees of the CPA firm who are on
the audit engagement.: T
, 5. The term "immediate family" includes a parent or sibling.:
F "immediate family" includes spouse, dependents.
6. An opinion based on an audit of financial statements is a
widely known form of attestation: T
7. The Sarbanes-Oxley Act of 2002 limits the engagement of
and concurring audit partners on an engagement to four-year
terms.: F 5 yrs
8. To be recognized as independent, the auditor must be free
from any oblig- ation to or interest in the client, its
management or its owners: T
9. A firm when acting as principal auditor is not required to
confirm the inde- pendence of another firm engaged to
perform segments of an engagement: F
10. A covered member who is a limited partner in a
partnership that invests in a client has a direct financial
interest in that client.: F indirect financial interest
