Business Ethic subject

23-PwC's actions in their audits of Avon and Pinnacle were similar in that the SEC alleged that the firm:

Was influenced in their opinions by the size of nonaudit services

Owned stock in both clients

Borrowed money from both clients

Served on the board of directors of both clients

29-The KBC Solutions case deals with:

Whether the senior in charge of an audit pressures staff accountants to not increase the workload at year-end because of audit budget considerations

Whether the senior in charge of an audit can provide adequate explanations for the accounting for transactions being questioned by the review partner

Whether the controller should give in to the pressure and go along with false financial statements

Whether an audit firm should go along with the client's demands for accelerating the recording of revenue

32-During the investigations by the House Subcommittee on Oversight and Investigations, a question that was raised was:

Where were the auditors?

Why did the internal controls fail in so many frauds?

Why was fraud allowed to occur at some many companies?

Where was the board of directors in all these frauds?

33-An alternative practice structure can best be described as:

A form of ownership where a CPA firm owns a public company and audits that company

A form of structure where a public company provides nonattest services for a client that is also provided with attest services by an affiliate of the public company

A form of structure other than LLP and LLC

A form of structure where a CPA firm provides nonattest services for a client that is also provided with attest services by a public company