ACCT 555 Week 2 Homework


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ACCT 553 Week 2 Homework

4-18 (Objective 4-6)

The following questions concern independence and the Code of Professional Conduct or GAAS. Choose the best response.

4-19 (Objective 4-7)

The following questions concern possible violations of the AICPA Code of Professional Conduct. Choose the best response.

4-20 (Objectives 4-5, 4-6)

The following situations involve the provision of nonaudit services. Indicate whether providing the service is a violation of AICPA rules or SEC rules including Sarbanes–Oxley requirements on independence. Explain your answer as necessary.

4-21 (Objectives 4-6, 4-7)

Each of the following situations involves a possible violation of the AICPA’s Code of Professional Conduct. For each situation, state the applicable section of the rules of conduct and whether it is a violation.

4-22 (Objectives 4-6, 4-7)

Each of the following situations involves possible violations of the AICPA’s Code of Professional Conduct. For each situation, state whether it is a violation of the Code. In those cases in which it is a violation, explain the nature of the violation and the rationale for the existing rule.

5-17 (Objective 5-6)

The following questions deal with liability under the 1933 and 1934 securities acts. Choose the best response.

5-19 (Objectives 5-4, 5-5)

Lauren Yost & Co., a medium-sized CPA firm, was engaged to audit Stuart Supply Company. Several staff were involved in the audit, all of whom had attended the firm’s in-house training program on effective auditing methods. Throughout the audit, Yost spent most of her time in the field planning the audit, supervising the staff, and reviewing their work.

5-21 (Objectives 5-3, 5-5)

Doyle and Jensen, CPAs, audited the accounts of Regal Jewelry, Inc., a corporation that imports and deals in fine jewelry. Upon completion of the audit, the auditors supplied Regal Jewelry with 20 copies of the audited financial statements. The firm knew in a general way that Regal Jewelry wanted that number of copies of the auditor’s report to furnish to banks and other potential lenders.

5-26 (Objective 5-5)

Sarah Robertson, CPA, had been the auditor of Majestic Co. for several years. As she and her staff prepared for the audit for the year ended December 31, 2010, Herb Majestic told her that he needed a large bank loan to “tide him over” until sales picked up as expected in late 2011.

11-19 (Objective 11-7)

You have identified a suspected fraud involving the company’s controller. What must you do in response to this discovery? How might this discovery affect your report on internal control when auditing a public company?

11-20 (Objectives 11-2, 11-3)

The following questions address fraud risk factors and the assessment of fraud risk.

11-23 (Objective 11-2)

During audit planning, an auditor obtained the following information:


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