Questions from Accounting Ethics

Q: One day your ethics professor comes into class and proclaims that audit

One day your ethics professor comes into class and proclaims that audit firms should be allowed to make materiality judgments when determining whether independence rules have been violated. After all,...

Q: Do you agree with the proposal of the Competitions and Market Authority

Do you agree with the proposal of the Competitions and Market Authority in the U.K. that the Big Four firms should be split operationally so that audit and nonaudit services are conducted in two separ...

Q: What can CPA firms do about the relatively high rate of audit

What can CPA firms do about the relatively high rate of audit deficiencies identified in PCAOB inspections of firm audits?

Q: We all know people who say, “Don’t bother me with

We all know people who say, “Don’t bother me with the facts. I’ve already made up my mind.” How might such an attitude influence judgment tendencies of auditors?

Q: Given the discussions in this chapter about conflicts of interest in the

Given the discussions in this chapter about conflicts of interest in the performance of professional services and improper relationships with the clients, do you think the accounting profession is tru...

Q: Do you believe the threats and safeguards approach establishes a situational or

Do you believe the threats and safeguards approach establishes a situational or relativistic ethic? How might utilitarianism be used to evaluate the ethicality of permitting certain relationships when...

Q: Can a CPA auditor be independent without being objective and impartial?

Can a CPA auditor be independent without being objective and impartial? Can a CPA auditor be objective and impartial without being independent? Explain your answer in the context of recent rule change...

Q: When do ethical conflicts arise in the performance of professional accounting services

When do ethical conflicts arise in the performance of professional accounting services? How should a CPA go about resolving ethical conflicts?

Q: Discuss whether an ethical conflict exists in violation of the AICPA rules

Discuss whether an ethical conflict exists in violation of the AICPA rules in each of the following situations: a. A senior on an audit receives a gift certificate from a client to the most expensive...

Q: Identify and discuss the ‘Best Audit Practices’ the PCAOB has identified

Identify and discuss the ‘Best Audit Practices’ the PCAOB has identified as a way to improve audit quality, and reduce audit deficiencies.