In the Auditing and Attestation Section of the CPA Exam,candidates

question 32

Multiple Choice

In the Auditing and Attestation section of the CPA exam,candidates are expected to demonstrate knowledge and understanding of the professional standards and the skill to apply that knowledge to performing auditing tasks.Some of the tasks that candidates are expected to perform are

• A)differentiate between audits,tax and compilation services
• B)differentiate between the professional standards for issuers and nonissuers
• C)identify situations that might be illegal or a violation of professional standards,perform research and consultations as appropriate,and determine the appropriate action
• D)recognize potentially unethical behavior of clients and determine the impact on the services performed
• E)demonstrate the importance of identifying and following requirements,rules,and standards that are established by the AICPA
• F)both A and C
• G)both B and D
• H)both D and E

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Definitions:

Attorney-Client Privilege

A legal principle that keeps communications between an attorney and their client confidential, protecting them from being disclosed in court.

Legal Advice

Guidance provided by a qualified legal professional regarding the law or legal matters pertaining to a specific case or situation.

Accounting Service

Accounting service refers to the systematic recording, analyzing, and reporting of financial transactions pertaining to a business, provided by professionals or firms specialized in this field.

Accountant-Client Privilege

A legal principle that keeps communications between an accountant and their client confidential, similar to attorney-client privilege.