A Violation of the Profession's Ethical Standards Would Most Likely

question 22

Multiple Choice

A violation of the profession's ethical standards would most likely have occurred when a CPA:

• A)purchased a bookkeeping firm's practice of monthly write-ups for a percentage of fees received over a three-year period.
• B)made arrangements with a bank to collect notes issued by a client in payment of fees due.
• C)named Smith formed a partnership with two other CPAs and used "Smith & Co." as the firm name.
• D)issued an unqualified opinion on the 2011 financial statements when fees for the 2010 audit were unpaid.

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Definitions:

Supplies Cost

The expense associated with purchasing supplies necessary for a company's operations or manufacturing processes.

Planning Budget

A budget designed at the beginning of the budgeting period that is based on a specific level of activity.

Frame

The structural support or skeleton that defines the shape or provides the foundation for a structure or object, such as a building or a piece of machinery.

Variable Overhead Costs

Indirect costs of production that fluctuate with the level of output, such as utilities and indirect labor.