Interpretations to the Rules of Conduct Permit a CPA Firm

question 112

Multiple Choice

Interpretations to the Rules of Conduct permit a CPA firm to do both bookkeeping and auditing for the same client if three criteria are met. Which of the following is not one of those criteria?

• A) The client must accept full responsibility for the financial statements.
• B) The client is required to file an annual report, including audited financial statements, with the Securities and Exchange Commission.
• C) The CPA must not assume the role of employee or of manager.
• D) The CPA must follow applicable auditing standards.

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Definitions:

Intellectual Disability

A term for significantly below-average intellectual functioning and adaptive behavior, evident before the age of 18.

Organic Intellectual Disability

A type of intellectual disability caused by physical or biological factors, affecting cognitive function and development.

Cultural-Familial Intellectual Disability

Intellectual disability attributed to factors related to one's cultural and familial environment, including socioeconomic status, rather than genetic reasons.

Weight Control

The practice of maintaining a healthy body weight through a balanced diet, regular physical activity, and monitoring of calorie intake.