The AICPA’s Code of Professional Conduct includes principles, rules and interpretations. Describe the purpose of each of the three parts. Must the Rules be followed by members of the AICPA that are not in public practice? Explain your answer.

Auditors may be restricted from holding an investment in a client. This violates which ethical rule?

Which of the following forms of advertising would most likely be considered a violation of the AICPA Code of Professional Conduct?

Which of the following is a correct statement related to CPA legal liability under common law?

Some of the rules included in the AICPA Code of Professional Conduct do not apply to CPAs in business.

The auditors’ report for a nonpublic company should indicate:

Most charges made against auditors under common law are criminal.

An investor is considering investing in one of two companies. The companies have very similar reported financial position and results of operations. However, only one of the companies has its financial statements audited. Describe what creates the demand for an audit in this situation. Include a discussion of how audited financial statements facilitate this investment transaction. (2 Reasons) Identify the potential consequences to the company of not having its financial statements audited. (2 reasons)

Negligence is defined as failure to use reasonable care in the performance of services.

Which of the following attributes is more essential for an auditor than of management?