Question

5- Which of these would be an Act Discreditable to the profession by you under the Code of   

                 Professional Conduct?

1. Withholding audit work papers which contain data , to which the client has no other access, from a successor auditor where you have not been paid for the prior year’s audit
2. Being sued for ordinary negligence by your audit client and losing
3. Making a clerical error on your tax client’s tax return and not informing the corresponding government agency
4. Calling the President a “limelight – seeking coward”
5. None of these

______     6-Which two of the following elements are member-adopted sections of the Code:

1. Principles
2. Ethical Rulings
3. Interpretations
4. Rules of Conduct

__b___ 7- Which ethical principle states that members should honor the public trust and Integrity

                 Demonstrate a commitment to professionalism?

1. Integrity
2. Public Interest
3. Due Care
4. Responsibilities

______ 8- Which of the following is subject to enforcement under the Rules of Conduct?

1. Independence in Fact  
2. Independence in Appearance

Answer 1

1) Solution: Withholding audit work papers which contain data , to which the client has no other access, from a successor auditor where you have not been paid for the prior year’s audit

Explanation: A refusal on returning the client records would be Act Discreditable to the profession

2) Solution: Ethical Rulings and Rules of Conduct

Explanation: An ethical ruling and rules of conduct are elements for the member-adopted sections

3) Solution: Public interest

Explanation: The public interest principle of ethics accept obligation in an approach which will honor public trust, serve the public interest, and demonstrate professionalism commitment to

4) Solution: Independence in Appearance

Explanation: Independence in Appearance would be subject to enforcement under the Rules of Conduct