Audit Chapter 4

  1. Rule 101
  2. List the 6 covered members under rule 101
    1. Individuals on the attest engagement team

    2. An individual in a position to influence the attest engagement, such as individuals who supervise or evaluate the engagement partner

    3. A partner or manager who provides nonattest services to the client

    4. A partner in the office of the partner responsible for the attest engagement

    5. The firm and its employee benefit plans

    6. An entity that can be controlled by any of the covered members listed above
  3. Independence
    Rule 101
  4. Rule 102
    Integrity and Objectivity
  5. Integrity and Objectivity
    Rule 102
  6. Rule 201
    General Standards
  7. General Standards
    Rule 201
  8. List the General Standards under Rule 201.
    1. Professional competence

    2. Due professional care

    3. Planning and supervision

    4. Sufficient Relevant Data
  9. Rule 202
    Compliance with Standards
  10. Compliance with Standards
    Rule 202
  11. Rule 203
    Accounting Principles
  12. Accounting Principles
    Rule 203
  13. Rule 301
    Confidential Client Information
  14. Confidential Client Information
    Rule 301
  15. Exceptions to Confidentiality?
    • Obligations related to technical standards
    • Subpoena or summons and compliance with laws/regulation
    • Peer Review
    • Response to AICPA ethics division
  16. Rule 302
    Contingent Fees
  17. Contingent Fees
    Rule 302
  18. What services may not be performed with a contingent fee?
    • Audit/Review of Financial Statements
    • Compilation of Financial Statements
    • Examination of prospective Financial Information
    • Tax Return/Claim for Tax Refund
  19. Rule 501
    Acts Discreditable
  20. Acts Discreditable
    Rule 501
  21. Rule 502
    Advertising and Other Forms of Solicitation
  22. Advertising and Other Forms of Solicitation
    Rule 502
  23. Rule 503
    Commissions and Referral Fees
  24. Commissions and Referral Fees
    Rule 503
  25. What is the rule on commissions and referral fees?
    A CPA who performs an audit, compilation of financial statements, or an examination of financial information may not - recommend or refer a client to any product/service for a commission.

    A CPA who recommends a product/service for commission (if not prohibited), must disclose that fact to any person to which the commission relates. The same goes with referall fees.
  26. Rule 505
    Form of Organization and Name
  27. Form of Organization and Name
    Rule 505
Card Set
Audit Chapter 4
Audit Chapter 4