- "Management Responsibilities and Independence: Which Services

Ryan, a member with Crane, CPAs, is contracted to perform some post-implementation information system services to an attest client. Which of the following services would constitute assuming a management responsibility and impair independence? I. Supervising client personnel involved in the operation of the attest client's information systems Il. Managing the attest client's information technology help desk Ill. If Ryan has responsibility for monitoring or maintaining the attest client's network performance I only II only II and III I, II, and Ill Question 40 A member, Davids, had been a manager in the public accounting firm, Sharma & Sharma, CPAs, for four years. She left that firm and joined Boston & Co., another public accounting firm. Her last month at Sharma, she told some Sharma clients about her planned move to Boston & Co. Some of these clients eagerly indicated that they might transfer their work to the Boston firm. The day before leaving, Davids turned in all firm manuals, external drives, and other firm-issued supplies. She also, without informing anyone in the Sharma firm or any clients, copied the client files of those who had told her they might transfer their work. When she started working at the Boston & Co. firm, she immediately gave these files to a Boston partner. Davids' actions with these client files has __ I. violated Rule 501, Acts Discreditable. I. violated Rule 301, Confidential Client Information. Ill. not violated any rule in the Code of Professional Conduct. I only II only I and I III only Question 41 Walters, a member, has been in public practice for nearly 20 years. Over the years, she has developed a number of specialties including tax dispute resolution, and evaluating tax sheltered investments. In an effort to expand her practice, Walters wants to promote her recently developed expertise in divorce forensic accounting. She had handled nearly a dozen such engagements over the past year and wants to develop a marketing brochure for the specialty highlighting the names of the clients she has represented. Would Walters be able to reveal the names of clients she has represented in divorce cases without obtaining the client's consent? Yes. It is not necessary to obtain a client's consent to disclose their names in this situation. No. Disclosure of client's names in this situation would suggest that the client is having marital difficulties, which may be confidential information. No. Disclosing the names of clients is a violation of confidentiality in all cases unless specific client consent is obtained. None of the above are correct Question 42 Which of the following procedures would maintain threats at an acceptable level and not impair independence? Recording transactions to an attest client's general ledger when the member has determined or approved the account classifications for the transaction. Posting member-coded transactions to an attest client's general ledger. Preparing financial statements based on information in the attest client's trial balance. Posting member-approved journal or other entries to an attest client's trial balance. Question 43