Questions from Auditing and Assurance


Q: Why are the prior year’s audit working papers a useful reference to

Why are the prior year’s audit working papers a useful reference to staff assistants during the current audit?

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Q: Use the AICPA Code of Professional Conduct (available at pub.

Use the AICPA Code of Professional Conduct (available at pub.aicpa.org/code of conduct) to identify the circumstances under which a CPA may not perform professional services on a contingent fee basis....

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Q: Jian Zhang is a CPA who often serves as an expert witness

Jian Zhang is a CPA who often serves as an expert witness in court cases. Is it proper for Zhang to receive compensation in a damage suit based on the amount awarded to the plaintiff? Discuss.

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Q: Sandy Schultz, CPA, has performed a consulting services job in

Sandy Schultz, CPA, has performed a consulting services job in which she made recommendations that ultimately resulted in one of her audit clients purchasing a computer manufactured by the AMZ Compute...

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Q: Laura Clark, wife of Jon Clark, CPA, is a

Laura Clark, wife of Jon Clark, CPA, is a life insurance agent. May Jon Clark refer audit clients needing officer life insurance to Laura Clark or to another life insurance agent who will share a comm...

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Q: What are the two major types of constraints on decisions that involve

What are the two major types of constraints on decisions that involve ethical issues? Provide examples of each type.

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Q: In what organizational forms may CPAs practice public accounting?

In what organizational forms may CPAs practice public accounting?

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Q: Must a CPA maintain independence and an impartial mental attitude when preparing

Must a CPA maintain independence and an impartial mental attitude when preparing a client’s income tax return? Explain.

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Q: The AICPA Code of Professional Conduct includes rules in various areas.

The AICPA Code of Professional Conduct includes rules in various areas. Which of those rules apply to CPAs not in public practice but in business or other positions (e.g., retired or unemployed)?

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Q: Define assurance services. What are the two distinct types?

Define assurance services. What are the two distinct types?

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