In Performing an Audit, Jackson, CPA, Discovers That the Professional

question 42

Multiple Choice

In performing an audit, Jackson, CPA, discovers that the professional competence necessary for the engagement is lacking. Jackson informs management of the situation and recommends another local CPA firm and management engages this other firm. Under these circumstances,

• A)Jackson may request compensation from the other CPA firm for any professional services rendered to it in connection with the engagement.
• B)Jackson may accept a referral fee from the other CPA firm.
• C)Jackson has violated the AICPA Code of Professional Conduct because of non-fulfillment of the duty of performance.
• D)Jackson's lack of competence should be construed to be a violation of generally accepted auditing standards.

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Definitions:

Probability Distribution

An analytical function that maps out every conceivable value and its associated likelihood for a random variable within a defined boundary.

Given Population

This term pertains to a specific group of individuals, items, or data points that are the focus of a statistical analysis.

Inferential Statistics

The branch of statistics focused on making predictions or inferences about a population based on a sample of data drawn from that population.

Standard Error

A measure that describes the dispersion or variance of sampling distribution of a statistic, most commonly the mean, indicating the precision of an estimate.