Audit Chapter 4

Independence

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

Rule 101

Integrity and Objectivity

Rule 102

General Standards

Rule 201

1. Professional competence

2. Due professional care

3. Planning and supervision

4. Sufficient Relevant Data

Compliance with Standards

Rule 202

Accounting Principles

Rule 203

Confidential Client Information

Rule 301

• Obligations related to technical standards
• Subpoena or summons and compliance with laws/regulation
• Peer Review
• Response to AICPA ethics division

Contingent Fees

Rule 302

• Audit/Review of Financial Statements
• Compilation of Financial Statements
• Examination of prospective Financial Information
• Tax Return/Claim for Tax Refund

Acts Discreditable

Rule 501

Advertising and Other Forms of Solicitation

Rule 502

Commissions and Referral Fees

Rule 503

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.

Form of Organization and Name

Rule 505