ACCT 555 help A Guide to career/Snaptutorial ACCT 555 help A Guide to career/Snaptutorial | Page 2

a. In which one of the following situations would a CPA be in
violation of the AICPA Code of Professional Conduct in determining
the audit fee?
4-20 (Objectives 4-5, 4-6) The following situations involve the
provision of nonaudit services. Indicate whether providing the service
is a violation of AICPA rules or SEC rules including Sarbanes–Oxley
requirements on independence. Explain your answer as necessary.
a.Providing bookkeeping services to a public company. The services
were preapproved by the audit committee of the company.
4-21 (Objectives 4-6, 4-7) Each of the following situations involves a
possible violation of the AICPA’s Code of Professional Conduct. For
each situation, state the applicable section of the rules of conduct and
whether it is a violation.
4-22 (Objectives 4-6, 4-7) Each of the following situations involves
possible violations of the AICPA’s Code of Professional Conduct. For
each situation, state whether it is a violation of theCode. In those
cases in which it is a violation, explain the nature of the violation and
the rationale for the existing rule.
5-17 (Objective 5-6) The following questions deal with liability under
the 1933 and 1934 securities acts. Choose the best response.
5-19 (Objectives 5-4, 5-5) Lauren Yost & Co., a medium-sized CPA
firm, was engaged to audit Stuart Supply Company. Several staff
were involved in the audit, all of whom had attended the firm’s in-
house training program on effective auditing methods. Throughout the
audit, Yost spent most of her time in the field planning the audit,
supervising the staff, and reviewing their work.
5-21 (Objectives 5-3, 5-5) Doyle and Jensen, CPAs, audited the
accounts of Regal Jewelry, Inc., a corporation that imports and deals
in fine jewelry. Upon completion of the audit, the auditors supplied
Regal Jewelry with 20 copies of the audited financial statements. The
firm knew in a general way that Regal Jewelry wanted that number of
copies of the auditor’s report to furnish to banks and other potential
lenders.
5-26 (Objective 5-5) Sarah Robertson, CPA, had been the auditor of
Majestic Co. for several years. As she and her staff prepared for the
audit for the year ended December 31, 2010, Herb Majestic told her