1. State if the following statements regarding the CPAs practice of MAS are true or false.

I. Although MAS extend beyond the traditional acctg. services MAS practitioners are still bound by the rules of professional ethics in the practice of acctg. in general.

II. All the provisions of the code of Professional ethics for CPAs in public acctg. without exceptions must be observed by those in MAS.

a. True, True

b. True, False

c. False, True

d. False, False

2. A persuasive characteristics of CPAs role in mgt. consulting services engagements is that of being a (an) a. independent practitioner

b. confidential reviewer

c. objective advisor

d. computer specialist

3. According to professions standards, which of the following would not be considered consulting services requirements for CPAs?

a. Supervising staff who are assigned to the engagement.

b. Maintaining independence from the client.

c. Complying with statements on standards for consulting services.

d. Obtaining an understanding of the nature, scope and limitations of the engagements.

4. The technical standards that apply to MAS engagements require the MAS practitioner to do all of the following except

a. Maintain independence from the client.

b. Give support for and clearly identify any quantifiable results that are based on estimates.

c. Obtain an understanding concerning the nature, scope, and limitations of the MAS engagement to be performed.

d. Take no position which might impair the practitioners objectivity.

5. A practitioner should reject an MAS engagement if

a. It would require him to make management decisions for audit client

b. His recommendations are to be subject to review by the client

c. He audits the financial statements of a subsidiary of the prospective client

d. The proposed engagement is not accounting related.

e. A and C

6. The CPA who undertakes the performance of MAS engagement should bear in mind that the results should

a. be communicated in quantitative terms

b. not be set forth as quantitative terms

c. not be explixitly or implicitly guaranteed

d. increase the clients earnings capabilities

7. Competence in mgt. advisory services is required by

a. Education

b. Actual performance of mgt. advisory services

c. auditing and other experiences

d. all of these

8. Factor that must be considered when defining the target level of competence of management consultants perspective and to take action needed on a calm and controlled basis without being diverted from a sound, logical and ethical course by outside pressure.

a. Psychological maturity

b. Courage

c. Psychological equilibrium

d. Judgment

Choose the correct answer

1. State if the following statements regarding the CPAs practice of MAS are true or false.

I. Although MAS extend beyond the traditional acctg. services MAS practitioners are still bound by the rules of professional ethics in the practice of acctg. in general.

II. All the provisions of the code of Professional ethics for CPAs in public acctg. without exceptions must be observed by those in MAS.

a. True, True

b. True, False

c. False, True

d. False, False

2. A persuasive characteristics of CPAs role in mgt. consulting services engagements is that of being a (an) a. independent practitioner

b. confidential reviewer

c. objective advisor

d. computer specialist

3. According to professions standards, which of the following would not be considered consulting services requirements for CPAs?

a. Supervising staff who are assigned to the engagement.

b. Maintaining independence from the client.

c. Complying with statements on standards for consulting services.

d. Obtaining an understanding of the nature, scope and limitations of the engagements.

4. The technical standards that apply to MAS engagements require the MAS practitioner to do all of the following except

a. Maintain independence from the client.

b. Give support for and clearly identify any quantifiable results that are based on estimates.

c. Obtain an understanding concerning the nature, scope, and limitations of the MAS engagement to be performed.

d. Take no position which might impair the practitioners objectivity.

5. A practitioner should reject an MAS engagement if

a. It would require him to make management decisions for audit client

b. His recommendations are to be subject to review by the client

c. He audits the financial statements of a subsidiary of the prospective client

d. The proposed engagement is not accounting related.

e. A and C

6. The CPA who undertakes the performance of MAS engagement should bear in mind that the results should

a. be communicated in quantitative terms

b. not be set forth as quantitative terms

c. not be explixitly or implicitly guaranteed

d. increase the clients earnings capabilities

7. Competence in mgt. advisory services is required by

a. Education

b. Actual performance of mgt. advisory services

c. auditing and other experiences

d. all of these

8. Factor that must be considered when defining the target level of competence of management consultants perspective and to take action needed on a calm and controlled basis without being diverted from a sound, logical and ethical course by outside pressure.

a. Psychological maturity

b. Courage

c. Psychological equilibrium

d. Judgment