11.In pursuing a CPA firm's quality objectives, a CPA firm should adopt policies and procedures to enable it to identify and evaluate circumstances and relationships that create threats to independence, and to take appropriate action to eliminate those threats or reduce them to an acceptable level by applying safeguards, or, if considered appropriate, to withdraw from the engagement. Which quality control element would this be most likely to satisfy?

Group of answer choices

Ethical requirements

Monitoring

Leadership responsibilities for quality within the firm

Human resources

12.A process designed to provide an objective evaluation, before the auditor's report is issued, of the significant judgments the engagement team made and the conclusions they reached in formulating the auditor's report.

Group of answer choices

Engagement quality control review

Management review

Concurring review

Peer review

13.The objective of an ordinary examination by the independent auditor is the expression of an opinion on the:

Group of answer choices

fairness of the presentation of the financial statements.

Statement of financial position and statement of comprehensive income.

quality of the decision process of the management.

accuracy of the financial statements.

14.The accuracy of information included in the footnotes that accompany the audited financial statements of a company whose shares are traded on a stock exchange is the primary responsibility of the:

Group of answer choices

stock exchange officials.

company's management.

independent auditor.

Securities and Exchange Commission.

15.This quality control element requires a CPA firm to establish policies and procedures to provide it with reasonable assurance that engagements are performed in accordance with professional standards and regulatory and legal requirements, and that the firm or the engagement partner issue reports that are appropriate in the circumstances.

Group of answer choices

Ethical requirements

Monitoring

Engagement performance

Human resources

16.Which of the following fundamental principles is compromised when a professional accountant is associated with reports or returns that are significantly misleading?

Group of answer choices

Integrity

Objectivity

Professional behavior

Competence and due professional care

17.Which of the following safeguards is inappropriate if a firm has a material financial interest in an entity that has a controlling interest in a financial statement audit client?

Group of answer choices

Dispose of a sufficient amount of the financial interest.

Dispose of the financial interest in total.

Discuss the presence of self-interest threat with the client's board of directors.

Either dispose of a sufficient amount of the financial interest or the financial interest in total.

18.The IFAC Code of Professional Conduct will ordinarily be considered to have been violated when the member represents that specific consulting services will be performed for a stated fee and it is apparent at the time of the representation that the

Group of answer choices

actual fee would be substantially lower than the fees charged by other members for comparable services.

actual fee would be substantially higher.

fee was a competitive bid.

member would not be independent.

19.In which of the following circumstances may disclosure of confidential information be appropriate?

Group of answer choices

The professional accountant volunteered to reveal information in order to help a faster resolution of legal proceedings.

Disclosure is necessary as required by legal proceedings.

Working papers are turned over to other professional accountant who purchased the accounting practice.

Detailed listing of inactive customers of one assurance client is passed on to other non-assurance client.

20.Which of the following is not allowed by the revised code of ethics?

Group of answer choices

A firm or CPA practitioner can continue to use the term "Accredited" or any similar words or phrase calculated to convey the same meaning if the claimed accreditation has not expired.

The use of the name of an international accounting firm affiliation/correspondence is generally allowed.

A professional accountant in public practice may issue to client or, in response to an unsolicited request, to a non-client a factual and objectively worded of the services provided.

Booklets and other documents bearing the name of a professional accountant and giving technical information for the assistance of staff or clients may be issued to such persons, other professional accountants or other interested parties.