Which of the Following Would Be Considered a Violation of the AICPA's

question 22

Multiple Choice

Which of the following would be considered a violation of the AICPA's Code of Professional Conduct?

• A) The CPA makes the audit files available to the client's bank without the permission of the client.
• B) The CPA firm charges a contingent fee for nonattestation services to a client for whom he or she does not perform any attestation services.
• C) The CPA firm takes a prospective client to lunch to discuss auditing services.
• D) A CPA firm uses the name San Diego Tax Specialists.

Recognize the difference between cash and accrual basis of accounting and their implications on financial statements.

Identify the purpose and timing of revenue recognition in accordance with accrual accounting.

Understand the requirements and justifications for making adjusting entries in the accounting cycle.

Comprehend the effects of adjusting entries on reporting expenses and revenues.

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Definitions:

Credited

Recognized or accounted for in financial transactions; often involves adding a sum to an account balance.

Account

A record or statement of financial expenditure and receipts, related to a specific period or purpose, or a contractual arrangement through which an individual or entity receives financial or banking services.

Cheque

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or to a specified person.

Invoice

A document issued by a seller to a buyer, detailing products or services provided, quantities, and agreed prices.