Question

Listed below are selected Rules of Conduct and ethical problems. Match the rule with the problem to which it applies. (One Rule of Conduct may apply to more than one ethical problem.)

Rules
A. Independence
B. Integrity and objectivity
C. General standards
D. Compliance with standards
E. Accounting principles
F. Contingent fees
G. Acts discreditable
H. Advertising and other forms of solicitation
I. Commissions and referral fees
J. Form or practice and name
Rules
1. An audit client owes the CPA past-due audit fees.
2. A member violates rules issued by the Accounting and Review Services Committee.
3. A CPA accepts a percentage of the client's loan as an audit fee.
4. A CPA robs a service station.
5. The auditors fail to qualify their opinion on financial statements that do not properly apply FASB standards.

Answer 1

1. Contingent fees

2. Acts discreditable

3. Commissions and referral fees

4. Compliance and standards

5. Accounting principles

Step-by-step explanation:

The auditors have responsibility to act professionally as the shareholders rely on their work. The auditors should not accept any gift from other businesses because it may impact their independence and objectivity. The auditors are required to follow all the rules and standards that are issued by the IASB.