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20 Cards in this Set
- Front
- Back
can a CPA advocate on behalf of their attest/audit clients?
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NO |
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do clients have the right to veto outsourcing of administrative duties? |
NO |
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when can a CPA receive contingent/commission/referral fees? |
-NEVER for an audit client, regardless of what the commission is for |
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attest firms must be majority owned...
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by CPAs |
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is a partner in the same office who has never done work for the client a covered member?
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YES |
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for immediate family and close relatives, what conditions must be met to avoid independence issues?
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interest must be both indirect and immaterial |
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what is considered as having material interest?
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-<5% of outstanding shares in undiversified fund |
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what is NOT considered to cause a material interest issue?
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-<5% of outstanding shares in a diversified fund |
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what is included as causing one to have a Direct Interest?
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-mutual fund -active trustee -grantor of a trust -participation in employee benefit plan -capital lease -blind trust |
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what is considered to cause Indirect Interest?
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-limited partner's interest -insurance policies (unless includes investment option) -brokerage accounts -bank accounts (unless going under and material) |
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define Direct Financial Interest
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interest owned directly, under their control, or when they have a say in investment decisions |
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employment-related Independence Impairment: |
-member of client's board -on client's general counsel |
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employment-related NO Independence Impairment |
-honorary partner of trustee |
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to whom does the 1-year cooling-off period apply?
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only to upper level positions |
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what are the situations in which a Gift doesn't cause an issue?
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-gifts that are "clearly insignificant" -entertainment that is "reasonable in the circumstances" |
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2 times when CPA can disclose confidential client info without client's consent
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2. state CPA quality review board |
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do members in business have to worry about independence rules?
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NO |
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for whom may an accountant perform actuarial services?
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private companies & public companies that it does not audit |
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PCAOB: auditor cannot perform which services for an audit client? |
-financial systems & design implementation -appraisals -contribution-in-kind reports -actuarial services -IA outsourcing -management/HR -broker/dealer -investment advisor -legal services |
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after how many years must the lead auditor rotate?
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5 years on, 5 years off |