25. CPA Ela Santos performs the audit of the local symphony society. Because of her good work, shewas elected an honorary member of the board of directors. Ela will be considered independentunlessACDYesYesYesThe position is in fact purely honorary.Listings of directors show she is an honorary director.She restricts participation strictly to the use of her name.She does not vote or participate in management functions.YesNoYesYesNoYesNoYesNoYesYesYesYes

Answer: ELA an auditor of local symphony society will be independent unless: 1. The position is in…

Answered: 5. CPA Ela Santos performs the audit of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Drag and drop the best response into the blank box. Shelley Bowman, CPA, obtained her designation in 2000. Since that time, she has built up a significant tax practice. In late 2021, a new client approached Shelley and asked her to perform an audit engagement. Believing this could lead to a substantial amount of tax work in the future, Shelley agreed, even though she had never completed an audit, nor taken any assurance courses since 1980. Violation of Competence No violation of the Rules of Professional Conduct Violation of Independence - self-interest Violation of the Charter of Conduct Violation of Independence - familiarity Violation of Independence - self review
The duty to retain discretion means that:Select one:a. The director should remain independent, freely exercising their powers in the company’s best interestsb. The director should disclose any material personal interest to the board of directorsc. The director should stay away from board meetings when they have a material personal interest in a matter to be discussed at the meetingd. The director should not disclose any material personal interest to the board of directors
Which of the following statements is true? a. The IASB has the same number of members as the FASB. b. The IASB structure has both advisory and interpretation functions, but no trustees. c. The IASB has been in existence longer than the FASB. d. The IASB structure is quite similar to the FASB’s, except the IASB has a larger number of board members.
Mrs. Hubbard, a mother of two, has been selected for an audit. Advise her on what to do to prepare for the audit and what to do if the audit does not turn out favorably. Question content area bottom Part 1 To prepare for the audit: (Select all that apply.) A. Mrs. Hubbard should hire an accountant or tax attorney, if necessary. B. Mrs. Hubbard should anticipate probable questions and develop responses. C. Mrs. Hubbard should gather all supporting documents. D. Mrs. Hubbard should reexamine the areas where the IRS raised questions.
Which of the following is NOT true about managing nonprofit corporations? Multiple Choice They are managed under the direction of a board of directors. They must have at least three directors. The directors generally serve for one year unless stated otherwise in the articles. An individual director may transact business on behalf of the nonprofit corporation.
Indicate the alternative that best completes the following sentence: Upon obtaining factual documentation of unethical business conduct by the vice president, to whom the chief audit executive (CAE) reports, the CAE should do the following: Oa. Report the facts to the chief executive officer and the audit committee. Ob. Conduct an investigation to determine the extent of the vice president's involvement in the unethical acts. O c. Schedule an audit of the business function involved. d. Confront the vice president with the facts before proceeding with the investigation.
4. Comment( ethical or unethical) on the following computations of the auditor's professional fee: a. 10% of the client's tax adjustment b. 10% of the client's audited net income c. waiving of professional fee 5. What is the primary objective of the audit engagement letter? Give two(2) possible reasons why the auditor should be initiating the audit engagement letter similar to pages 27-28 Why should the audit engagement letter be renewed periodically? 6. Luzon, Inc., a publicly held company wishes to engage J. Cruz, a CPA, to examine its financial statements. Luzon was generally pleased with the services provided by its prior CPA, Dizon, but though the audit work performed was too detailed and interfered excessively with Luzon's normal office routines, Cruz asked Luzon to inform Dizon of the decision to change auditors, but Dizon did not wish to do so. REQUIRED: Describe the three(3) kinds of written communications to be accomplished by the receiving accountant to the existing…
identifying the strengths and weaknesses in relation to member and make a recommendation as to whether member should remain on the committee or be replaced. The constitution and membership of a Sapphire’s audit committee is as follows: Member A – Chair of the Committee who, before retirement two years ago was the Finance Director of the company
Following the American Institute of Certified Public Accountants (AICPA) code of professional conduct A is required only by members of the AICPA.B is voluntary by members and nonmembers.C is required only in situations that do not jeopardize personal interest.D mandatory for all CPAs.
Please answer all 3 subparts. Question 1 (i) Which of the following is not a responsibly of a remuneration committee?A. The setting up of the remuneration policy for all executive directors and the Company’s Chairperson, including pension rights and any compensation payments.B. The evaluation of the effectiveness of the Board, and its individual directors.C. Review the on-going appropriateness and relevance of the remuneration policy.D. Take into account all factors which it deems necessary including relevant legal and regulatory requirements, the principles of the Code and associated guidance. (ii) Which one of the following is not a responsibility of the external auditor?A. Responsibility for the ‘true and fair view’ of the financial statements.B. Responsibility to obtain reasonable assurance, in their professional opinion, that the financial statements are free from material error or misstatement.C. That financial statements comply with the relevant lawsD. Responsibility to carry…
Jack Company hired Jill as the external auditor in 2002 and his auditor's opinion for 2002 to 2004 Financial Statements has been "Unqualified". When the typhoon hit in 2004, Jill was asked by the company for advice on how can they can maximize their earnings to ensure that they have enough funds to aid the additional expenses caused by the typhoon. In accordance with the Code of Corporate Governance, is there any violation made?

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