AICPA 4-13

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Author:
Anonymous
ID:
79356
Filename:
AICPA 4-13
Updated:
2011-04-13 12:17:26
Tags:
AICP Quiz
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Description:
AICPA Quiz
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The flashcards below were created by user Anonymous on FreezingBlue Flashcards. What would you like to do?


  1. Litigation that would likely impair independence:
    • If the client alleges audit deficiencies and takes or threatens legal action
    • If you take legal action against the client for fraud or deceit
  2. Litigation that would not impair independence
    • If both:
    • Threatened legal action does not relate to the performance of the attest engagement
    • Amount involved is not material to you or the client
  3. Indemnification - Independence is not impaired
    Clause in the engagement indicating that the client would release you from liability and costs resulting management knowingly misrepresenting
  4. Indemnification - independence is impaired
    Client asks you to agree to indemnify them for costs related to legal action that arises directly/indirectly from client acts
  5. Cannot have a contingent fee if you perform any of these services:
    • Audit/review of financial statements
    • Compilation of a financial statement when you don't disclose a lack of independence
    • Examination of prospective financial statements
    • No tax returns or tax refunds
  6. What is a commission?
    A fee you receive for recommending someone's products/services
  7. If you're in public practice and performing attest services what may you not do for a commission?
    • Recommend someone's products/services
    • Recommend a client's products/services
    • Perform services for your client

What would you like to do?

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