q 2
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quiz_2.docxACCT 411
Quiz 2
Spring 2015
1. In the mid-20th century in the United States the Commission on Standards of Education and Experience for Certified Public Accountants issued a report that listed characteristics of a profession. What are those characteristics?
2. What is a strictly selfish commercial view?
3. As a professional, the accountant has which of the following obligations (select all that apply):
1. to be competent and know about the art and science of accounting
2. to put the interests of the client before the accountant's own, avoiding the temptation to take advantage of the client
3. to serve the public interest
4. to have a degree in accounting
5. to be a licensed CPA
4. What kind of scandal, if any, was KPMG involved in?
5. The AICPA code of ethics says, members should act with integrity, guided by the precept that when members fulfill their responsibility to the profession above all else.
T
F
6. The AICPA code assumes that honesty is always the best policy, and that ethical business is always good business.
T
F
7. Accountants are charged with maintaining the orderly functioning of commerce without succumbing to a strictly commercial point of view.
T
F
8. If an accountant is not a CPA and does not belong to the AICPA, is the accountant bound by the AICPA Code of Conduct? Explain your answer.
9. List six ways Business Ethics enumerates that codes of conduct can be valuable:
10. The AICPA Code of Conduct is composed of two sections. Explain the difference between these two sections.
11. To which constituencies do accountants have ethical responsibilities?
12. To meet the moral obligations, accountants must "exercise sensitive professional and moral judgments."
T
F
13. Who in included in the public?
14. Conflicts of interest between clients and the public, or between employers and the public, are inevitable.
T
F
15. Define integrity
16. Is honesty synonymous with integrity?
Yes
No
17. How is integrity measured?
18. Define objectivity.
19. The principle of due care sets a relatively low bar for the accountant.
T
F
20. Critics of the AICPA Code of Conduct say, however, that the principles have at least two insufficiencies. What are these?
21. Did KPMG engage in intentional wrongdoing in auditing New Century’s books?
22. Explain Immanuel Kant's first categorical imperative.
23. The auditor's duty to attest to the fairness of financial statements imbues the accountant with special responsibilities to the public.
T
F
24. According to the Cohen Report, to whom does an auditor owe primary responsibility?
25. The ISB delineated four basic principles and four concepts to use as guidelines to determine
26. What are five types of threats to independence?
27. What is reasonable assurance?
