1. Shantall Smith, a solo CPA proctitioner, decides to call her new firm Smith and Associates, CPAs, in order to make it appear to potential clients that her CPA proctice is much larger than it actually is. Her action can best be described as :

a. Good marketing.

b. Acceptable , since Shantall has hired a part-time intern who is an accounting student.

c. A violation of the Rules of Professional Conduct which states that a CPA firm cannot have a name that is misleading.

d. None of the above

1. LuAnn, CPA, speciolizes in forensic accounting but finds herself in need of additional revenue. She therefore posts flyers in her area and puts on her websites/social media accounts that she is highly experienc

refunds than recognized franchise S & H Circle Tax Preparers. LuAnn has never worked in the tax field in her entire career. Has LuAnn violated any rules of professional conduct?

a. No, because LuAnn should be able to advertise in any way that would garner her more clients.

b. Yes, because ET 1.400.090 states that false, misleading or deceptive acts in promoting or marketing professional services constitutes an "Acts Discreditable" under ET 1400.001.

c. Yes, because TX RPC 501.82 does not permit a CPA to advertise or solicit in a way that is false, misleading, or deceptive.

d. Both b and c

1. Sonja, CPA, has been approached by retailer Oklahoma Furniture Mart to perform an external audit on the company's financial statements. Sonja has only audited financial institutions and is wholly unfamiliar with the retail industry. She does not have any CPAs in her practice that have ever audited any retail clients and Sonja is doubtful that she will be able to obtain the requisite knowledge before or during the audit. Sonja must under these circumstance.

A. Decline the engagement since she cannot obtain the necessary competence or enlist the services of another CPA experienced in retail auditing.

b. Accept the engagement since this is a plum client and will lead to lucrative fees.

c. Accept the engagement since she should be able to fake her way through the audit.

d. None of the above.

1. Bruce, CPA billed his client Jane's Sporting Goods 14 months ago for auditing services rendered. Jane's has not paid the bill. Bruce's independence with respect to his client is:

a. Not compromised since Jane issued him a note for the outstanding fees.

b. Not compromised since Bruce is a patient person and does not mind that the bill has not been paid yet.

c. Compromised.

d. None of the above