Question

One of the main rules of American Institute of Certified Public Accountants (AICPA) Code of Professional...

One of the main rules of American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct is for an auditor to remain independent. However, the auditor is paid by the client to preform an auditor of their financial information. Do you think the fact that the client pays the auditor for this service is a violation of the Professional Code of Conduct, why or why not?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

As the main rule of American institue of Certified Public Accountants code of conduct is for an auditor to remain independent, thus by receiving the consideration for discharge of professional services by the auditor to it's client doest not amount to voilation of the professional code of conduct . As the auditor is not substantially interested in the business of the client anyhow, thus he can't be barred to conduct audit of their financial information and charge fees for the same.

Therefore, we conclude it doesnot amount to voilation of professional code of conduct by the auditor.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
7. Following the American Institute of Certified Public Accountants (AICPA) code of professional conduct A is...
7. Following the American Institute of Certified Public Accountants (AICPA) code of professional conduct A is required only by members of the AICPA. B is voluntary by members and nonmembers. C is required only in situations that do not jeopardize personal interest. D mandatory for all CPAs.
The AICPA code of conduct Rule 101 Independence, Integrity, and Objectivity requires that auditors are independent...
The AICPA code of conduct Rule 101 Independence, Integrity, and Objectivity requires that auditors are independent of their audit clients both in fact and in appearance. What does this mean? How does the auditor “know” that he/she is independent? How does he/she prove that he/she is independent? If you are an auditor can you accept a deep discount that is normally offered to customers from your audit client? Why or why not?
1) Each of the following situations involves a possible violation of the rule on independence. For...
1) Each of the following situations involves a possible violation of the rule on independence. For each situation, (1) decide whether the Code of Professional Conduct has been violated, and (2) briefly explain how the situation violates (or does not violate) the Code of Professional Conduct. (a) Harry Brown is a partner in the Topeka office of Hedley & Co., CPAs. Harry's brother is employed in an audit-sensitive position by Jensen Appliances, a publicly held company in Kansas. Jensen Appliances...
In a bizarre twist to a bizarre story, on October 22, 2013, Deloitte agreed to pay...
In a bizarre twist to a bizarre story, on October 22, 2013, Deloitte agreed to pay a $2 million penalty to settle civil charges—brought by the PCAOB—that the firm violated federal audit rules by allowing its former partner to continue participating in the firm’s public company audit practice, even though he had been suspended over other rule violations. The former partner, Christopher Anderson, settled with the PCAOB in 2008 by agreeing to a $25,000 fine and a one-year suspension for...
Assignment: What are the main arguments in the article? Please answer within 5 hours. It is...
Assignment: What are the main arguments in the article? Please answer within 5 hours. It is extremely urgent!!!!!!!!!!!!!!!!!!!!!!!! --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- BIOETHICS. Bioethics as a field is relatively new, emerging only in the late 1960s, though many of the questions it addresses are as old as medicine itself. When Hippocrates wrote his now famous dictum Primum non nocere (First, do no harm), he was grappling with one of the core issues still facing human medicine, namely, the role and duty of the...
Why do you suppose the marketing of the tax shelters at KPMG grew so fast? a.Transformational...
Why do you suppose the marketing of the tax shelters at KPMG grew so fast? a.Transformational leadership b. Moral manager c. Social learning theory d. Moral intensity [The following information applies to the question.] In Chapter 4 we discussed the artificial tax shelter arrangements developed by KPMG LLP for wealthy clients that led to the settlement of a legal action with the Department of Treasury and the Internal Revenue Service. On August 29, 2005, KPMG admitted to criminal wrongdoing and...
During the trial, lawyers for the accused said that the men believed that the accounting decisions...
During the trial, lawyers for the accused said that the men believed that the accounting decisions they made were appropriate at the time, and that the accounting treatment was approved by Nortel’s auditors from Deloitte & Touche. Judge Marrocco accepted these arguments. Marrocco added he was “not satisfied beyond a reasonable doubt” that the trio (i.e., Dunn, Beatty, and Gollogly) had “deliberately misrepresented” financial results. Given the facts of the case, do you believe Judge Marrocco’s decision was justified? Explain....
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
2. SECURING THE WORKFORCE Diversity management in X-tech, a Japanese organisation This case is intended to...
2. SECURING THE WORKFORCE Diversity management in X-tech, a Japanese organisation This case is intended to be used as a basis for class discussion rather than as an illustration of the effective or ineffective handling of an administrative situation. The name of the company is disguised. INTRODUCTION In light of demographic concerns, in 2012, the Japanese government initiated an effort to change the work environment in order to secure the workforce of the future. Japan is world renowned for its...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT