Which of the following safeguards is provided by the profession legislation or regulation?
|
Test Prep This preview shows page 50 - 52 out of 61 pages. 35. Which of the following safeguards to eliminate or reduce threats to independence isprovided by the profession, legislation or regulation?A.Policies and procedures that emphasize the assurance client’s commitmentto fair financial reportingB.Internal policies and procedures to implement compliance with firmpolicies and procedures as they relate to independenceC.Continuing education requirementsD.Rotation of senior personnel 36.A firm of CPAs may use policies and procedures such as notifying professionalpersonnel as to the names of audit clients having publicly held securities and confirmingperiodically with such personnel that prohibited relations do not exist. This is done toachieve effective quality control in which of the following areas? We have textbook solutions for you!The document you are viewing contains questions related to this textbook. College Accounting, Chapters 1-27 Heintz/Parry  A.Acceptance and continuance of clientsB.Human resourcesC.Ethical requirementsD.Leadership responsibilities for quality within the firm37. Error that arises from an isolated event that has not recurred other than onspecifically identifiable occasions and is therefore not representative of errors in thepopulationA.Expected errorB.Anomalous errorC.Sampling errorD.Unintentional error38. The audit procedure that may be helpful in identifying the existence of unusualtransactions or events, and amounts, ratios and trends that may indicate matters thathave financial statement and audit implication isA.Inquiries of managementB.Observation an inspectionC.ConfirmationD.Analytical procedures39. During consideration of the internal control system in a financial statement audit, anauditor is not obligated toA.Search for significant deficiencies in the operation of the internal controlsystemB.Understand the internal control environment and the accounting systemC.Determine whether the control procedures relevant to the audit planning havebeen placed in operationD.Perform procedures in order to understand the design of the internal controlpolicies40.The risk of management fraud because increases in the presence ofA.Management incentive systems based on operating incomeB.Improved internal controlC.Substantial increases in salesD.Frequent changes in suppliers41. Gotto Company, whose financial statements are unaudited, has engaged a CPA to make aspecial review and report on Gotto’s internal accounting control. In general, to which of thefollowing will this report be least useful?A.Gotto’s managementB.Present and prospective customersC.A regulatory agency having jurisdiction over GottoD.The independent auditor of Gotto’s parent company Upload your study docs or become a Course Hero member to access this document Upload your study docs or become a Course Hero member to access this document End of preview. Want to read all 61 pages?
Upload your study docs or become a Course Hero member to access this document Tags assurance engagements We have textbook solutions for you!The document you are viewing contains questions related to this textbook. The document you are viewing contains questions related to this textbook. College Accounting, Chapters 1-27 Heintz/Parry Expert Verified Newly Uploaded DocumentsNewly Uploaded DocumentsWhat is a safeguard in the context of professional conduct?“Safeguards are actions, individually or in combination, that the professional accountant takes that effectively reduce threats to compliance with the fundamental principles to an acceptable level.”
Which is an example of safeguards within the client's systems and procedures?Examples of safeguards within the client's systems and procedures include: The client requires persons other than management to ratify or approve the appointment of a firm to perform an engagement. The client has competent employees with experience and seniority to make managerial decisions.
What are the ethical safeguards?Ethical safeguards can be grouped into two broad categories: i. Safeguards created externally, by legislation, regulation or the accountancy profession ii. Safeguards established within the work environment.
What are the five basic principles in professional ethics?The revised Code establishes a conceptual framework for all professional accountants to ensure compliance with the five fundamental principles of ethics:. Integrity.. Objectivity.. Professional Competence and Due Care.. Confidentiality.. Professional Behavior.. |
