Accounting For Governmental & Nonprofit Entities
Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781259917059
Author: RECK, Jacqueline L., Lowensohn, Suzanne L., NEELY, Daniel G.
Publisher: Mcgraw-hill Education,
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Chapter 11, Problem 21EP
To determine

Indicate P (prohibited), A (acceptable), or C (could impair auditor independence) for each of the non-audit services mentioned.

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Which of the following statements is true regarding the AICPA Code of Conduct's conceptual framework approach? An auditor who identifies threats should discontinue the engagement. Olf safeguards reduce threats to an acceptable level, the auditor should discontinue the engagement. OAfter threats are identified, an auditor should apply safeguards to determine whether the threat can be reduced to an acceptable level. OAn auditor who identifies threats that are significant should discontinue the engagement.
A CPA wishes to use representation letter as a substitute for performing other audit procedures. Doing so:   Violates professional standards, Is acceptable, but should only be done when cost justified, Is acceptable, but only for non-public clients, Is acceptable and desirable under all conditions
External auditors cannot delegate responsibility for audit decisions to the internal auditors. True False
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