Questions from Auditing and Assurance

Q: Explain how a CPA might have an indirect financial interest in an

Explain how a CPA might have an indirect financial interest in an audit client. Does the AICPA Code of Professional Conduct prohibit such interests?

Q: Bill Scott works as a manager in the Phoenix office of an

Bill Scott works as a manager in the Phoenix office of an international public accounting firm. His father has just taken a position as a purchasing agent for one of the public accounting firm’s Phoen...

Q: What is the most common type of attest engagement? What is

What is the most common type of attest engagement? What is most frequently being “asserted” by management on this type of engagement?

Q: Audit working papers are the property of the auditors, who may

Audit working papers are the property of the auditors, who may destroy the papers, sell them, or give them away.” Criticize this quotation.

Q: Three months ago, a national public accounting firm hired Greg Scott

Three months ago, a national public accounting firm hired Greg Scott to work as a staff auditor in its New York office. Yesterday, Scott’s father was hired to be the chief financial officer of one of...

Q: Explain why the potential liability of auditors for professional “malpractice”

Explain why the potential liability of auditors for professional “malpractice” exceeds that of physicians or other professionals.

Q: Contrast joint and several liability with proportionate liability.

Contrast joint and several liability with proportionate liability.

Q: Compare the rights of plaintiffs under common law with the rights of

Compare the rights of plaintiffs under common law with the rights of persons who purchase securities registered under the Securities Act of 1933 and sustain losses. In your answer, emphasize the issue...

Q: State briefly a major distinction between the Securities Act of 1933 and

State briefly a major distinction between the Securities Act of 1933 and the Securities Exchange Act of 1934 with respect to the type of transactions regulated.

Q: Why was the Ernst & Ernst v. Hochfelder decision considered a

Why was the Ernst & Ernst v. Hochfelder decision considered a “victory” for the accounting profession?