1. Which statement most accurately describes the Federal Deposit Insurance Corporations (FDIC) auditor independence requirements? a. FDIC independence requirements incorporate requirements for attorneys and actuaries. b. FDIC independence requirements mirror the AICPA and DOL independence rules. c. Certain FDIC policy statements address auditor independence. d. The FDIC has not adopted regulations that incorporate SEC independence rules.

2.The SEC has historically raised questions regarding the independence of firms that derive a significant portion of their total revenues from one audit client or group of clients because the SEC staff believes these situations causes CPA firms to;

a) Profit excessively from a client or group of clients.

b) depend too heavily on the fees generated by the client or the clients.

c) have mutuality of interest with the client or group of clients.

d) place too heavy a burden on the client;s financial position.

3.A two-office firm, one in Chippewa Falls and another in Fargo, has an audit client that is a medical equipment supplier. The lead audit partner for this client practices in the Fargo office, which is where the engagement is conducted. Which of the following stockholdings in the client will not impair the firm's independence?

a managers in Chippewa Falls who will providing 26 hour o of non-attest services to the client this year

b Chippewa Falls staff person who provide no services to the client.

c Fargo tax partners who provide no service to client.

d Fargo staff person working on the audit engagment

4.Which statement best describes competence as defined in the AICPA Code of Professional Conduct?

1. Infallible judgment that cannot subsequently be called into question.
2. The application of skill and knowledge with reasonable care and diligence.
3. Possessing an advanced college degree in the relevant subject matter.
4. Rigid adherence to the professional standards of engagement performance.