Question 1

Explain the term adversarial bias of expert witnesses. What are the main sources of adversarial bias?

Accepted Answer

The answer of Explain the term adversarial bias of expert...

Question 2

Seven consulting service standards are contained in Statement on Standards for Consulting Services No. 1, including the four general standards provided by Rule 201 of the AICPA's Rules of Professional Conduct. Briefly explain the other three standards.

Accepted Answer

The answer of Seven consulting service standards are contained in...

Question 3

Which of the following statements best defines the adverse interest threat as per AICPA's Guide for Complying with Rules 102-505 (2008)?

Accepted Answer

The adverse interest threat refers to the threat that a member's objectivity will be compromised because their interests are in opposition to those of their client or employer. This can result in the member not being able to provide unbiased and objective advice or recommendations.

Question 4

"Forensic accountants must display the attribute of trustworthiness." Explain why trust is important in any forensic accountants' professional relationships.

Accepted Answer

The answer of "Forensic accountants must display the attribute of...

Question 5

Briefly explain the term professional responsibility. Identify three obligations that relate to professional responsibility.

Accepted Answer

The answer of Briefly explain the term professional responsibility. Identify...

Question 6

As per AICPA's Guide for Complying with Rules 102-505 (2008), ________ implies that a member will subordinate his or her judgment to that of an individual associated with a client, employer, or other relevant third party because of the individual's reputation or expertise.

Accepted Answer

Undue influence threat refers to the threat to objectivity caused by a member subordinating his or her judgment to that of an individual associated with a client, employer, or other relevant third party because of the individual's reputation or expertise. This threat arises when the individual's reputation or expertise would cause the member to ignore or deviate from applicable professional standards or ethical requirements.

Question 7

Explain the sequence of actions to be followed to reconcile inconsistencies in various organizational standards.

Accepted Answer

The answer of Explain the sequence of actions to be...

Question 8

How is "A Guide for Complying with Rules 102-505 (2008)" useful in making and acting on informed ethical decisions? Briefly explain the threats and safeguard approach described in "A Guide for Complying with Rules 102-505 (2008)."

Accepted Answer

The answer of How is "A Guide for Complying with...

Question 9

Which of the following is a primary driver of professional responsibility failure?

Accepted Answer

Overestimating one's skill sets can lead to a false sense of competence and can result in professional responsibility failure. This can happen when a practitioner takes on a task they are not qualified for, or when they do not seek additional guidance or training when needed.

Question 10

John Miller is employed at an auditing firm which offers forensic accounting and income tax services. His next engagement is with a tax client, a partnership firm, to assist in the determination of a withdrawing partner's entitlement. The withdrawing partner owns another firm also and John's elder brother is an employee in that firm. Which of the following is the threat faced by John Miller as per AICPA's Guide for Complying with Rules 102-505 (2008)?

Accepted Answer

John's elder brother is an employee of the withdrawing partner's firm, which creates a self-interest threat as John may be inclined to favor the interests of his family member's employer over the interests of the client.

Question 11

What's the difference between a principle and a rule? Do principles provide a framework for rules and, if yes, how?

Accepted Answer

The answer of What's the difference between a principle and...

Question 12

"Identifying and eliminating, or at least neutralizing, adversarial bias is no small task." Explain the parties capable of identifying and eliminating, or at least neutralizing, adversarial bias.

Accepted Answer

The answer of "Identifying and eliminating, or at least neutralizing,...

Quiz 10: Professional Responsibilities