1. threat that a CPA will not appropriately evaluate the results of a previous judgment made by, or service performed by, an individual in the CPAs firm is a(n) _______.

-familiarity threat

-advocacy threat

-self-review threat

-self-interest threat

2.According to the integrity and objectivity rule, in the performance of any professional service, a member shall not knowingly _______.

-omit a material fact

-decentralize work to subordinates

-none of the above is correct

-misrepresent facts

3.The rule on integrity and objectivity applies to _______.

-only non-audit services performed by CPAs

-some services performed by CPAs

-only audit, services performed by CPAs

-all services performed by CPAs

4.A committee of the board of directors responsible for oversight of internal controls, financial reporting and disclosure in the financial statements, regulatory compliance, and the companys independent auditors is/are called (a/an) ________.

-covered members

-dependents

-audit committee

-executors

5.What happens if an independence threat appears to be insurmountable?

-The audit firm should take the engagement and continue to make certain that safeguards are put in place to limit or remove those threats.

-An audit firm should decline the offer to be the auditor of a prospective client or resign from the audit of an existing client.

-The audit firm should make certain that safeguards are put in place to limit or remove those threats.

-The audit firm should contact the State Board of Accountancy so they can make a press release to discourage other accountants from taking the engagement.