Which of the Following Acts by a CPA Would Not

question 47

Multiple Choice

Which of the following acts by a CPA would not necessarily be considered an act discreditable to the profession under Rule 501 of the AICPA Code of Professional Conduct?

• A)Prohibiting a client's new CPA firm from reviewing the audit working papers after the client has requested the CPA to do so.
• B)Engaging in discriminatory employment practices.
• C)Robbing a convenience store.
• D)Knowingly signing a false tax return.

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Definitions:

Fair Value

The value obtained for offloading an asset or incurred in passing on a liability in a smooth transaction among those active in the market on the evaluation date.

Bonds Payable

Long-term debt securities issued by a company, promising to pay a specified sum of money at a future date.

Straight Line Amortization

A method of gradually reducing the book value of an intangible asset over its useful life in equal installments.

Goodwill Impairment

The process of reducing the book value of goodwill on the balance sheet if the fair value of the entity is less than its carrying amount.