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.

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Definitions:

Debenture Bonds

Unsecured bonds that rely on the creditworthiness and reputation of the issuer rather than collateral.

Secured Bonds

Bonds that are backed by specific assets of the issuer as collateral, giving bondholders a claim to those assets if the issuer defaults.

General Credit

An overarching term that may refer to the creditworthiness of an individual or entity, or sometimes used to describe general lines of credit available for borrowing.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders, providing limited liability protection among other benefits.