In Performing an Audit,Jackson,CPA,discovers That the Professional Competence Necessary for the Engagement

question 50

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:

E-commerce Program

A structured plan or framework that outlines how to conduct business transactions over the internet including buying, selling, marketing, and servicing of products or services.

Tenured Faculty

Faculty members who have been granted permanent employment status, typically after a probationary period, providing them with job security and academic freedom.

Resource Limitations

Involve the constraints and scarcities within an organization or project that affect the availability of materials, finances, and human resources.

Force Field Analysis

A tool used to analyze the forces for and against a change, to identify the factors that can influence a situation.