Identify some of the most important ways that the profession and society encourage CPAs to conduct themselves at a high level.

What are the six core ethical values described by the Josephson Institute?
What are some other sources of ethical values?
4-2 (OBJECTIVE 4-2) Describe an ethical dilemma. How does a person resolve an ethical dilemma?
4-3 (OBJECTIVE 4-3) Identify some of the most important ways that the profession and society encourage CPAs to conduct themselves at a high level.
4-4 (OBJECTIVE 4-4) What are the three categories of members under the AICPA Code of Professional Conduct?
4-5 (OBJECTIVE 4-4) What organization is responsible for developing ethics standards at the international level? What are the fundamental principles of the international ethics standards?
4-6 (OBJECTIVE 4-5) Why is an auditor’s independence so essential?
4-7 (OBJECTIVE 4-5) Explain how the rules concerning stock ownership apply to partners and professional staff. Give an example of when stock ownership would be prohibited for each.
4-8 (OBJECTIVE 4-5) Describe some of the reasons why there have been calls for mandatory rotation of audit firms. How could an investor of a public company determine how long an audit firm has served as that company’s auditor?
4-9 (OBJECTIVE 4-6) What consulting or nonaudit services are prohibited for auditors of public companies? What other restrictions and requirements apply to auditors when providing nonaudit services to public companies?
4-10 (OBJECTIVE 4-6) Many people believe that a CPA cannot be truly independent when payment of fees is dependent on the management of the client. Explain two approaches that could reduce this appearance of lack of independence.
4-11 (OBJECTIVE 4-7) After accepting an engagement, a CPA discovers that the client’s industry is more technical than she realized and that she is not competent in certain areas of the operation. What are the CPA’s options?
4-12 (OBJECTIVE 4-7) Assume that an auditor makes an agreement with a client that the audit fee will be contingent upon the number of days required to complete the engagement.

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