ACCOUNTING 204ANFINAL EXAMS COMPILATION OLD NOTES

From UC S.Y. 2004-2005:

1. An audit independence issue might be raised by the auditor’s participation in management
advisory services engagements. Which of the following statements is most consistent with the
profession’s attitude toward this issue?
c. The auditor should not make decision for an audit client

2. The Code of professional conduct states that a CPA shall not disclose any confidential information
obtained in the course of professional engagement except with, the consent of his or her client. In which
of the situation’s that follow would disclosure by a CPA be in violation of the Code

a. Disclosing confidential information to properly discharge he CPA’s responsibilities in accordance with

the profession’s standards

3. Which of the following fee arrangement is in violation of the Code of Professional Conduct

a. A fee based on whether the CPA’s report on the client’s financial statements results in the approval of
a bank loan.

4. Which of the following describe most completely how the profession defines independence

d. Accepting responsibility to act professionally and in accordance with a professional code of conduct.

5. In which of the following circumstances would a CPA be bound to refrain from disclosing confidential
information obtained during professional engagements?

d. An Inquiry by a disciplinary body