Question 9
Locke, CPA, was engaged to perform an audit for Vorst Co. During
the audit, Locke discovered that Vorst's inventory contained stolen
goods. Vorst was indicted and Locke was validly subpoenaed to testify
at the criminal trial. Vorst has claimed accountant-client privilege to
prevent Locke from testifying.
Locke may be compelled to testify
Question 10
(NOTE: This is a CPAexcel simulated Exam Question, not AICPA
licensed Material)
Ron is a partner in the Houston office of KPMG. A partner in Ron's
office is the lead partner on the team that audits Midstream Pipeline,
which operates intrastate oil and gas pipelines, but Ron is not on the
engagement team. Which of the following scenarios represents an
independence violation of the AICPA Code of Conduct?
Question 11
(NOTE: This is a CPAexcel simulated Exam Question, not AICPA
licensed Material)
The CPA firm, where Joanna is currently a tax partner, is auditing
Bubbles Corp. in Austin. Her mother, Teresa, has been working as a
receptionist for Bubbles for the last 30 years. Her best friend since
grade school, Maggie, is currently serving as CFO at Bubbles. Joanna
knows that her brother, Jonathan, sank most of his savings into a
purchase of 6% of Bubbles outstanding stock, which he currently
owns. Does Joanna have an independence issue?
Question 12