A CPA observed another CPA engaging in an act that was undeniably discreditable to the profession. The Acts Discreditable Rule of the AICPA:
a. requires the observing CPA to report this violation to a designated officer of the AICPA.
b. requires the observing CPA to report this violation to a designated officer of the applicable state’s accountancy licensing board.
c. expressly states that a CPA has no duty to report the observed misconduct.
d. does not express an opinion on whether the observing CPA does, or does not, have a reporting duty.
The name of a CPA firm may:
a. include the name of a founder who is retired, as long as he or she remains an active member of the AICPA.
b. include the name of a founder who is deceased.
c. not include the name of a CPA unless that CPA is a member in good standing of the AICPA.
d. include the name of a non-CPA without needing to identify the non-CPA as being, in fact, a non-CPA.
Before accepting or continuing an engagement or a relationship with a client, the accountant should ascertain that:
A. Reliable information to complete the engagement will be available
B. All ethical requirements will be satisfied
C. The financial reporting framework selected by management is acceptable
D. All of the above
A CPA observed another CPA engaging in an act that was undeniably discreditable to the profession. The Acts Discreditable Rule of the AICPA:
a. Requires the observing CPA to report this violation to a designated officer of the AICPA.
b. Requires the observing CPA to report this violation to a designated officer of the applicable states accountancy licensing board.
c. Expressly states that a CPA has no duty to report the observed misconduct.
d. Does not express an opinion on whether the observing CPA does or does not have a reporting duty.
The accountant’s documentation for compilation engagement is required to include all following, except:
A. A copy of the financial statements
B. The engagement letter
C. A copy of the accountant’s compilation report
D. Responsibility of management
Which of the following can possibly be part of the informal information search process for organizational buyers?
a. site visits to evaluate a potential vendor
b. laboratory test of a new product or prototype
c. investigation of possible product specifications
d. discussions with sales representatives
e. all of the above are part of informal information search
Among the competing theories related to the recording and reporting of accounting theory, the theory which views management and control as important components of the firm is the
A. commander theory
B. fund theory
C. enterprise theory
D. residual equity theory
Which of these groups was involved in developing the study Charting a National Strategy for the Next Generation of Accountants?
a. Pathways Commission
b. American Institute of Certified Public Accountants
c. American Accounting Association
d. All of these
