Copy of Alabama Ethics – Final Exam

What term is used to define being accountable for one’s actions and exercising restraint?

What term is used to define a set of moral principles of values?

If a “Big R” restatement renders a company’s overall financial statements unreliable, the company must disclose the restatement on what form?

What organization developed the Joint Ethics Enforcement Program (JEEP)?

What organization was created after the Sarbanes-Oxley Act of 2002 was enacted?

Which of the following is NOT one of the possible findings from an investigation by the JEEP committee?

What standards board was created to address auditor independence issues?

The PCAOB has adopted a rule to require registered CPA firms to prepare and maintain audit work papers and other information related to an audit for at least _______ years.

The Sarbanes Oxley Act of 2002 requires that CEOs and CFOs of public companies are required to personally certify the accuracy of their company’s financial reports. Fraud and deception for false certifications will result in significant criminal penalties of up to ____ years if the false certification was willful.

In which of the following situations is independence NOT considered impaired during a period of the professional engagement according to Rule 101 of the AICPA Code of Professional Conduct?

A registered public accountant shall not knowingly misrepresent facts and, when engaged in the practice of public accounting, including the rendering of tax and management advisory services, shall not subordinate his judgment to others. This is an example of what principles?

What standard requires a CPA to undertake only those professional services that the member or the member’s firm can reasonably expect to be completed in a professional manor?

What rule addresses the situation where an unusual circumstance would cause the literal application of pronouncements on accounting principles to have the effect of rendering financial statements be misleading or would be regarded generally by reasonable persons as producing a misleading result?

According to Rule 301, when can a practitioner disclose any confidential client information?

What term means a fee established for the performance of any service pursuant to an arrangement in which no fee will be charged unless a specified finding or result is attained, or in which the amount of the fee is otherwise dependent upon the finding or result of such service?

According to Rule 302, when can a member in public practice accept a contingent fee?

When a client or former client makes a request for client-provided records, all of the following must be returned to the client except:

Sam Smith is a licensed CPA and primarily provides business planning and tax preparation services. One of Mr. Smith’s clients uses both business planning and tax preparation services. As tax season approaches the client drops off his records in order for Mr. Smith to file his yearly tax return. If an invoice for business planning services is overdue, what is Mr. Smith permitted to do in order to receive payment for business planning services?

Applying the risk-based approach when determining independence generally means that when threats to independence are not at an acceptable level, which of the following must be applied to eliminate the threats or reduce them to an acceptable level?

Familiarity threat can occur when members having a close or longstanding relationship with an attest client or knowing individuals or entities (including by reputation) who performed non-attest services for the client. Which of the following is NOT an example of familiarity threat?