CPA AUD Practice Exam 4

A CPA firm is performing an audit of a nonissuer, TechInnovate Inc. The engagement partner's spouse recently inherited 50 shares of stock in TechInnovate Inc. The value of the stock is $2,500, which is considered immaterial to the spouse's net worth and the partner's net worth. The spouse plans to sell the stock within 30 days. According to the AICPA Code of Professional Conduct, which of the following statements is correct regarding the firm's independence?

An auditor is performing an audit of an issuer, Global Corp, in accordance with PCAOB standards. The auditor discovers that the client's Chief Financial Officer (CFO) was the lead engagement partner on the audit five years ago. The CFO left the CPA firm four years ago. Which of the following correctly describes the independence implications under SEC and PCAOB rules?

A CPA is performing an audit of a county government entity that receives federal financial assistance. The audit is conducted in accordance with GAO Government Auditing Standards (the Yellow Book). The CPA also provides non-audit services to the county, specifically assisting in drafting the financial statements based on the trial balance provided by management. Which of the following is the auditor's responsibility regarding independence?

During the audit of an employee benefit plan subject to ERISA, the auditor discovers that the plan administrator has not filed the required Form 5500 with the Department of Labor (DOL). The auditor is concerned about the plan's compliance with laws and regulations. Under DOL independence rules, which of the following relationships would IMPAIR the auditor's independence with respect to the plan?

An auditor is evaluating the 'integrity' principle of the AICPA Code of Professional Conduct. Which of the following situations most clearly represents a violation of the integrity principle, rather than just the objectivity or due care principles?