If the AICPA Code of Professional Conduct Does not Specifically

question 48

Multiple Choice

If the AICPA Code of Professional Conduct does not specifically address a threat to auditor independence,the auditor should:

• A)Conclude that the threat is not significant unless proven so.
• B)Conclude that the threat results in a lack of independence unless it can be shown that no impairment of independence occurs.
• C)Consider the threat from the perspective of a reasonable and informed third party who has knowledge of all the relevant information.
• D)Consult the Statements on Auditing Standards for guidance.

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Definitions:

Formal Sanctions

Official and authorized penalties or rewards imposed by a governing body or institution to enforce rules or laws.

Mores

Social norms that are widely observed and have great moral significance, guiding the moral and ethical behavior within a society.

Core Values

Fundamental beliefs or guiding principles that dictate behavior and action for an individual or organization.

Culture Wars

Conflicts between groups with differing ideals, beliefs, and practices regarding cultural, moral, and religious issues.