DeVry ACCT 444 Week 1-5 Complete Quizzes
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4. (TCO 1) Any service that requires a CPA firm to issue a report about the reliability of an<br />
assertion that is made by another party is a(n) _____ (Points: 3)<br />
assurance service.<br />
attestation service.<br />
tax service.<br />
accounting and bookkeeping service.<br />
Chapter 1<br />
5. (TCO 1) Which of the following statements is incorrect regarding the SEC’s partner rotation<br />
rules? (Points: 3)<br />
The lead and concurring partners are subject to a 5-year time out period.<br />
All audit partners must rotate off the audit engagement after 5 years.<br />
Other audit partners are subject to a 2-year time out period.<br />
Small firms may be exempted from the partner rotation requirement.<br />
6. (TCO 3) Burrow & Co., CPAs, have provided annual audit and tax compliance services to<br />
Mare Corp. for several years. Mare has been unable to pay Burrow in full for services Burrow<br />
rendered 19 months ago. Burrow is ready to begin fieldwork for the current year’s audit. Under the<br />
ethical standards of the profession, which of the following arrangements will permit Burrow to begin<br />
the fieldwork on Mare’s audit? (Points: 3)<br />
Mare engages another firm to perform the fieldwork, and Burrow is limited to reviewing the workpapers<br />
and issuing the audit report.<br />
Mare sets up a 2-year payment plan with Burrow to settle the unpaid fee balance.<br />
Mare gives Burrow an 18-month note payable for the full amount of the past due fees before Burrow<br />
begins the audit.<br />
Mare commits to pay the past due fee in full before the audit report is issued.<br />
Chapter 2
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