Beruflich Dokumente
Kultur Dokumente
Objectivity
Professional behavior
Professional competence and due care
Integrity
Part
Part
Part
Part
A
B
C
D
Part
Part
Part
Part
A
B
C
D
5. The threat that a professional accountant will be deterred from acting objectively
because of actual or perceived pressures from the client is known as
A.
B.
C.
D.
Intimidation threat
Familiarity threat
Self-interest threat
Advocacy threat
6. Which of the following will not create self-interest threat for a professional
accountant in public practice?
A. The possibility of losing a significant client
Self-review threat
Advocacy threat
Self-interest threat
Familiarity threat
13. In the case of audit engagements, it is in the public interest and, therefore,
required by the Code that members of audit teams, firms and network firms shall be
independent of audit clients. Independence requires
A.
B.
C.
D.
14. When the professional accountant determines that appropriate safeguards are
not available or cannot be applied to eliminate the threats to independence or
reduce them to an acceptable level, the professional accountant shall
I. Eliminate the circumstance or relationship creating the threats
II. Decline or terminate the audit engagement
A.
B.
C.
D.
I only
II only
Neither I or II
Either I or II
D. Neither I nor II
16. Financial interest may be held through an intermediary (for example, a
collective investment vehicle, estate or trust). When control over the investment
vehicle or the ability to influence investment decisions exists, the code defines that
financial interest to be a/an
A.
B.
C.
D.
17. Holding a financial interest in an audit client may create a self-interest threat.
The existence and significance of any threat created depends on
I. The role of the person holding the financial interest.
II. Whether the financial interest is direct or indirect.
III. The materiality of the financial interest.
A.
B.
C.
D.
I and II only
I and III only.
II and III only
I, II and III.
18. The concept of materiality is least important to an auditor when considering the
A. Effects of a direct interest in the client upon the auditors independence.
B. Decision whether to use positive or negative conformations of accounts
receivable.
C. Adequacy of disclosure of a clients illegal act.
D. Discovery of weaknesses in a clients international control.
19. A direct financial interest or a material indirect financial interest in the audit
client of a member of the audit team or his immediate family member may create a
significant self-interest threat. Which of the following safeguards would be least
likely considered to eliminate the threat or reduce it to an acceptable level?
A. Discuss the matter with those charged with governance of the audit client.
B. Dispose of the direct financial interest prior to the individual becoming a
member of the audit team.
C. Dispose of the indirect financial interest in total or dispose of a sufficient
amount of it so that the remaining interest is no longer material prior to the
individual becoming a member of the audit team.
D. Remove the member of the audit team from the audit engagement.
20. Jayson, CPA, was offered the engagement to audit W corporation for the year
ended December 31, 2013. He had served as a director of W Corporation until
December 31, 2011, and his spouse currently owns 6,000 of the 100,000
outstanding share capital of W Corporation. Jayson disassociated from W
Corporation prior to being offered the engagement. Moreover, the engagement does
not cover any period that includes Jaysons association or employment with W
Corporation. Under the code of ethics, Jayson should
A.
B.
C.
D.
21. A loan, or guarantee of a loan, to the firm from an audit client that is a bank or a
similar institution, would not create a threat to independence provide
I. The loan, or guarantee, is made under normal lending procedures, terms and
requirements.
II. The loan is immaterial to both the firm receiving the loan and the audit client.
A.
B.
C.
D.
I only
II only
Neither I nor II
Both I and II
22. A close business relationship between a firm or a member of the audit team, or
a member of that individuals immediate family, and the audit client or its
management may create
A.
B.
C.
D.
Intimidation threat
Self-interest threat
Self-review threat
Familiarity threat
25. Which of the following would not generally create a threat to independence?
A. The purchase of goods and services from an assurance client by the firm (or
from a financial statements audit client by a network firm) or a member of
the assurance team provided that the transaction is in the normal course of
the business and on an arms length basis.
B. A partner or employee of the firm or a network firm serves as Company
Secretary for a financial statement audit client.
C. Determining which recommendation of the firm should be implemented.
D. Reporting, in a management role, to those charged with governance.
26. The following forms of assistance to a financial statement audit client do not
generally threaten the firms independence, except
A.
B.
C.
D.
27. As defined in the code, a valuation comprise the making of assumptions with
regard to future developments, the application of certain methodologies and
techniques, and the combination of both in order to compute a certain value, or
range of values, for an asset, a liability or for a business as a whole. Which of the
following threats may be created when a firm or a teamwork firm performs
valuation for an audit client that is to be incorporated in the clients financial
statements?
A.
B.
C.
D.
Advocacy threat
Familiarity threat
Self-review threat
Intimidation threat