Which of the Following Procedures Would a CPA Most Likely

question 28

Multiple Choice

Which of the following procedures would a CPA most likely perform in the planning phase of a financial statement audit?

• A)Make inquiries of the client's lawyer concerning pending litigation.
• B)Perform cutoff tests of cash receipts and disbursements.
• C)Compare financial information with nonfinancial operating data.
• D)Recalculate the prior year's accruals and deferrals.

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Definitions:

Ethical

Relating to moral principles or the branch of knowledge concerned with right and wrong behavior, often guiding professional conduct.

Criticize

To express disapproval or find fault with something or someone, often by evaluating merits and shortcomings.

NASW Code of Ethics

A set of guiding principles and standards established by the National Association of Social Workers to guide social workers' conduct and ensure ethical and professional behavior.

Professional Responsibility

The duty to act in a morally correct, ethical, and professional manner while upholding the standards of one's profession.