Documents References Mailings Review View Tell me DissourSWISUULSUSRUTO TO 1) Discuss the types of information are protected by a professional accountant's duty of confidentiality. Give three examples 2) Under the Sarbanes-Oxley Act, what tax services may a CPA firm provide to a publicly-traded audit client? Does the performance of both tax services and auditing services to a client pose a threat to the auditor's objectivity? Discuss your reasons why or why not? 3) A California CPA provides management advisory services to a large public utility that provides natural gas throughout California and is the only supplier of electricity to residential users in California. The CPA has been asked to prepare a request for a utility rate increase that will be submitted to state regulators for their approval. a. Does the CPA have a conflict of interest? Discuss why or why not? b. Would you expect this conflict of interest to impair the CPA's objectivity? 4) Does the CPA have a duty to disclose this conflict of interest? Discuss why or why not 5) In accordance with the duty of confidentiality, when is client information considered to be confidential? Give three examples. 6 A CPA provides professional services to several businesses in its community. One such client is Union Bank, the largest bank in town, and another client is Orbits, Inc., a large aerospace manufacturer. Orbits, Inc, has a large outstanding loan balance owed to Union Bank, and it lately has been experiencing severe liquidity problems. Orbits is a privately held company and its liquidity problems are not generally known to the public or to Primetime Bank. In preparing the Allowance for Uncollectible Loans account for Union Bank, the CPA must decide whether or not to take into account Orbits' liquidity problems. It learned of these liquidity problems during the course of preparing cash flow budgets for Orbits. a. What ethical principles are relevant to the CPA's decision? b. What court cases are relevant to the CPA's decision? . What decision should the CPA reach. 7) What factors should a potential whistleblower consider before actually deciding to divulge information to a workplace authority? Do the factors that a potential whistleblower should consider depend on whether they are divulging information to a workplace authority rather than a governmental authority? 8) Discuss the difference between the duty of confidentiality and the accountant-client privilege? Give three examples. 9) A client wants to claim a dubious tax deduction, but the client's deduction does is not more likely than not to be approved of, if detected and challenged by the IRS. Discuss the options are available to this client? 10)Discuss situations where a tax advisor should encourage a client to seek legal advice 11) If tax return preparers were permitted to solely act as advocates for their clients' interests, without regard to the public interest, discuss the consequences 12) When does a CPA's duty of confidentiality begin? When does it terminate? 13)Private citizens benefit financially from a "qui tam" lawsuit only if a lawsuit is initiated under the False Claims Act on behalf of the federal government. If individuals pursuing this type of legal action were entitled to keep 90% of the winnings, how do you believe society would change? tes) ol Focus MacBook Pro Documents Mailings Review View Tell me 14) Should stockholders of a company be permitted to serve on a company's Board Directors? Should stockholders of a company be permitted to serve on a company's Audit Committee? Why or why not? 15) The IFAC Code of Conduct classifies a certain challenge to independence as the intimidation threat. What name does the AICPA's Independence Rule use to refer to this threat? 16) What are the seven threats to independence identified in the AICPA's Code of Professional Conduct? Give examples of each? 17) Discuss three of the safeguards that CPAs firm utilize to minimize threats to their auditor independence. 18) A CPA was raised by his grandmother. Can his grandmother's stock ownership in one of the CPA's audit clients impair his independence? Discuss why or why not. 19)A junior CPA at Depaul, CPAs currently is working as an audit team member on the audit of General Molecular. This CPA is about to search for a different position of employment. a. If this individual is thinking about applying for employment at General Molecular, what are his professional duties and when do they commence? b. You are a friend of this junior CPA and you know that he is about to apply for employment at General Molecular. You also know that he does not intend to inform Depaul. CPAs until the last minute, if at all." What duties do you have under the AICPA's Code of Professional Conduct? What actions, if any, would you take? c. Once a CPA firm learns that an audit team member is pursuing employment with an audit client, what duties, if any, does it have? 20) If a junior CPA decides to pursue work at an audit client during the course of an audit, what kinds of costs will his decision impose on his CPA firm? Should he reimburse the firm for those costs. Documents References Mailings Review View Tell me DissourSWISUULSUSRUTO TO 1) Discuss the types of information are protected by a professional accountant's duty of confidentiality. Give three examples 2) Under the Sarbanes-Oxley Act, what tax services may a CPA firm provide to a publicly-traded audit client? Does the performance of both tax services and auditing services to a client pose a threat to the auditor's objectivity? Discuss your reasons why or why not? 3) A California CPA provides management advisory services to a large public utility that provides natural gas throughout California and is the only supplier of electricity to residential users in California. The CPA has been asked to prepare a request for a utility rate increase that will be submitted to state regulators for their approval. a. Does the CPA have a conflict of interest? Discuss why or why not? b. Would you expect this conflict of interest to impair the CPA's objectivity? 4) Does the CPA have a duty to disclose this conflict of interest? Discuss why or why not 5) In accordance with the duty of confidentiality, when is client information considered to be confidential? Give three examples. 6 A CPA provides professional services to several businesses in its community. One such client is Union Bank, the largest bank in town, and another client is Orbits, Inc., a large aerospace manufacturer. Orbits, Inc, has a large outstanding loan balance owed to Union Bank, and it lately has been experiencing severe liquidity problems. Orbits is a privately held company and its liquidity problems are not generally known to the public or to Primetime Bank. In preparing the Allowance for Uncollectible Loans account for Union Bank, the CPA must decide whether or not to take into account Orbits' liquidity problems. It learned of these liquidity problems during the course of preparing cash flow budgets for Orbits. a. What ethical principles are relevant to the CPA's decision? b. What court cases are relevant to the CPA's decision? . What decision should the CPA reach. 7) What factors should a potential whistleblower consider before actually deciding to divulge information to a workplace authority? Do the factors that a potential whistleblower should consider depend on whether they are divulging information to a workplace authority rather than a governmental authority? 8) Discuss the difference between the duty of confidentiality and the accountant-client privilege? Give three examples. 9) A client wants to claim a dubious tax deduction, but the client's deduction does is not more likely than not to be approved of, if detected and challenged by the IRS. Discuss the options are available to this client? 10)Discuss situations where a tax advisor should encourage a client to seek legal advice 11) If tax return preparers were permitted to solely act as advocates for their clients' interests, without regard to the public interest, discuss the consequences 12) When does a CPA's duty of confidentiality begin? When does it terminate? 13)Private citizens benefit financially from a "qui tam" lawsuit only if a lawsuit is initiated under the False Claims Act on behalf of the federal government. If individuals pursuing this type of legal action were entitled to keep 90% of the winnings, how do you believe society would change? tes) ol Focus MacBook Pro Documents Mailings Review View Tell me 14) Should stockholders of a company be permitted to serve on a company's Board Directors? Should stockholders of a company be permitted to serve on a company's Audit Committee? Why or why not? 15) The IFAC Code of Conduct classifies a certain challenge to independence as the intimidation threat. What name does the AICPA's Independence Rule use to refer to this threat? 16) What are the seven threats to independence identified in the AICPA's Code of Professional Conduct? Give examples of each? 17) Discuss three of the safeguards that CPAs firm utilize to minimize threats to their auditor independence. 18) A CPA was raised by his grandmother. Can his grandmother's stock ownership in one of the CPA's audit clients impair his independence? Discuss why or why not. 19)A junior CPA at Depaul, CPAs currently is working as an audit team member on the audit of General Molecular. This CPA is about to search for a different position of employment. a. If this individual is thinking about applying for employment at General Molecular, what are his professional duties and when do they commence? b. You are a friend of this junior CPA and you know that he is about to apply for employment at General Molecular. You also know that he does not intend to inform Depaul. CPAs until the last minute, if at all." What duties do you have under the AICPA's Code of Professional Conduct? What actions, if any, would you take? c. Once a CPA firm learns that an audit team member is pursuing employment with an audit client, what duties, if any, does it have? 20) If a junior CPA decides to pursue work at an audit client during the course of an audit, what kinds of costs will his decision impose on his CPA firm? Should he reimburse the firm for those costs