1|Page
UNA MBA 601 Exam 1 includes accurate and
verified questions covering foundational
concepts in business administration such as
business strategy, economic analysis, financial
reporting, marketing fundamentals, and
organizational behavior. This exam is
Which of the following statements best explains why
public accounting, as a profession, promulgates ethical
standards and established means for ensuring their
observance? - .....ANSWER ...✔✔ Ethical standards
are established so that users of accounting services know
what to expect and accounting professionals know what
behaviors are acceptable, and so that discipline can be
applied when necessary.
All of the following nonaudit services are identified by
the SEC as generally impairing an auditor's
independence except - .....ANSWER ...✔✔ Some
specific tax services
,2|Page
Under the SEC's rules regarding independence, which of
the following must a client disclose? - .....ANSWER
...✔✔ Fees for the external audit, audit-related feels,
tax fees, and fees for other nonaudit services performed
by the audit firm.
The AICPA Code of Professional Conduct contains both
general ethical principles that are aspirational in
character and a - .....ANSWER ...✔✔ Set of specific,
mandatory rules describing minimum levels of conduct a
CPA must maintain.
In which of the following situations would a CPA's
independence be considered impaired according to the
Code of Professional Conduct?1. The CPA has a car loan
from a bank that is an audit entity. The loan was made
under the same terms available to all customers.2. The
CPA has a direct financial interest in an audit entity, but
the interest is maintained in a blind trust.3. The CPA
owns a commercial building and leases it to an audit
entity. The rental income is material to the CPA. -
.....ANSWER ...✔✔ 2 & 3
An audited entity company has not paid its 2013 audit
fees. According to the AICPA Code of Professional
Conduct, for the auditor to be considered independent
with respect to the 2014 audit, the 2013 audit fees must
,3|Page
be paid before the - .....ANSWER ...✔✔ 2014 report
is issued.
Which of the following legal situations would be
considered to impair the auditor's independence? -
.....ANSWER ...✔✔ Actual litigation by the auditor
against the present management, alleging management
fraud or deceit.
A violation of the profession's ethical standards is least
likely to occur when a CPA - .....ANSWER ...✔✔
Purchases another CPA's accounting practices and bases
the price on a percentage of the fees accruing from
clients over the three-year period.
Rick, an independent CPA, must make an ethical
judgment related to the audit of an entity. If he
primarily focuses on whether his decision might yield
unfair advantages for some at the expense of others, he
is using - .....ANSWER ...✔✔ A justice-based
perspective.
During the audit of Moon Co., the auditor disagrees with
management's estimation of collectible accounts
receivable. The possible misstatement amount is
material. Which of the statements below should weigh
, 4|Page
more heavily for the auditor in this instance? -
.....ANSWER ...✔✔ Requiring an adjustment to the
allowance for doubtful accounts would give stockholders
access to fair and adequate information.
Without the consent of the entity, a CPA should not
disclose confidential entity information contained in
working papers to a(n) - .....ANSWER ...✔✔ CPA firm
that has been engaged to audit a former audit entity.
One of a CPA firm's basic objectives is to provide
professional services that conform with professional
standards. Reasonable assurance of achieving this basic
objective is provided through - .....ANSWER ...✔✔ A
system of quality control.
In connection with the element of engagement
performance, a CPA firm's system of quality control
should ordinarily include procedures covering all of the
following except - .....ANSWER ...✔✔ Performance
evaluation.
A spouse, spousal equivalent, or dependent (whether or
not related). - .....ANSWER ...✔✔ Immediate Family
UNA MBA 601 Exam 1 includes accurate and
verified questions covering foundational
concepts in business administration such as
business strategy, economic analysis, financial
reporting, marketing fundamentals, and
organizational behavior. This exam is
Which of the following statements best explains why
public accounting, as a profession, promulgates ethical
standards and established means for ensuring their
observance? - .....ANSWER ...✔✔ Ethical standards
are established so that users of accounting services know
what to expect and accounting professionals know what
behaviors are acceptable, and so that discipline can be
applied when necessary.
All of the following nonaudit services are identified by
the SEC as generally impairing an auditor's
independence except - .....ANSWER ...✔✔ Some
specific tax services
,2|Page
Under the SEC's rules regarding independence, which of
the following must a client disclose? - .....ANSWER
...✔✔ Fees for the external audit, audit-related feels,
tax fees, and fees for other nonaudit services performed
by the audit firm.
The AICPA Code of Professional Conduct contains both
general ethical principles that are aspirational in
character and a - .....ANSWER ...✔✔ Set of specific,
mandatory rules describing minimum levels of conduct a
CPA must maintain.
In which of the following situations would a CPA's
independence be considered impaired according to the
Code of Professional Conduct?1. The CPA has a car loan
from a bank that is an audit entity. The loan was made
under the same terms available to all customers.2. The
CPA has a direct financial interest in an audit entity, but
the interest is maintained in a blind trust.3. The CPA
owns a commercial building and leases it to an audit
entity. The rental income is material to the CPA. -
.....ANSWER ...✔✔ 2 & 3
An audited entity company has not paid its 2013 audit
fees. According to the AICPA Code of Professional
Conduct, for the auditor to be considered independent
with respect to the 2014 audit, the 2013 audit fees must
,3|Page
be paid before the - .....ANSWER ...✔✔ 2014 report
is issued.
Which of the following legal situations would be
considered to impair the auditor's independence? -
.....ANSWER ...✔✔ Actual litigation by the auditor
against the present management, alleging management
fraud or deceit.
A violation of the profession's ethical standards is least
likely to occur when a CPA - .....ANSWER ...✔✔
Purchases another CPA's accounting practices and bases
the price on a percentage of the fees accruing from
clients over the three-year period.
Rick, an independent CPA, must make an ethical
judgment related to the audit of an entity. If he
primarily focuses on whether his decision might yield
unfair advantages for some at the expense of others, he
is using - .....ANSWER ...✔✔ A justice-based
perspective.
During the audit of Moon Co., the auditor disagrees with
management's estimation of collectible accounts
receivable. The possible misstatement amount is
material. Which of the statements below should weigh
, 4|Page
more heavily for the auditor in this instance? -
.....ANSWER ...✔✔ Requiring an adjustment to the
allowance for doubtful accounts would give stockholders
access to fair and adequate information.
Without the consent of the entity, a CPA should not
disclose confidential entity information contained in
working papers to a(n) - .....ANSWER ...✔✔ CPA firm
that has been engaged to audit a former audit entity.
One of a CPA firm's basic objectives is to provide
professional services that conform with professional
standards. Reasonable assurance of achieving this basic
objective is provided through - .....ANSWER ...✔✔ A
system of quality control.
In connection with the element of engagement
performance, a CPA firm's system of quality control
should ordinarily include procedures covering all of the
following except - .....ANSWER ...✔✔ Performance
evaluation.
A spouse, spousal equivalent, or dependent (whether or
not related). - .....ANSWER ...✔✔ Immediate Family
