Video: PCAOB & SEC Requirements Practice Questions

In this lesson, Nick Palazzolo, CPA, goes through multiple-choice practice questions related to PCAOB & SEC Requirements. He covers topics such as services prohibited by the PCAOB, who material weaknesses in internal control should be communicated to, and the role of a CFO as per SEC guidelines. The lesson also provides insights on how to identify and eliminate wrong answer choices while focusing on understanding the rules and responsibilities of auditors under these regulatory bodies.

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Video Transcript

Instructor: Nick Palazzolo

Nick Palazzolo is head instructor of ExamPrep.ai CPA Review. Nick's teaching style is engaging & upbeat, combining practical Big 4 tax & assurance expertise with years of 1-on-1 coaching. His lessons are concise and emphasize what you need to know to pass. Whether you're a recent grad or working full-time, we’re confident you can conquer your CPA exams with Nick’s review.

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All right, nothing better than some multiple choice questions to work on together. Here we go. First one, which of the following is not a prohibited service that a CPA could perform for an issuer that it is auditing as long as the service has been pre-approved by the audit committee? All right, so CPA is auditing this issuer, right, auditing the client. So three of these they cannot do. And I'm just going to start off with one. You can't do bookkeeping for a client you're working on, right? You're not going to create the books and then audit your own work. That is the biggest no-no there. So definitely going to cross that one off. One of these is explicitly mentioned that it's okay, and we'll talk about that in a second. But I want to eliminate the other ones as well. So legal services, I'm going to eliminate that as well. So that is a prohibited service. You cannot do that. You cannot give legal advice because, again, that's acting on behalf of the client, right? So and the reasoning for why you can do the one that we will see in a second, you know, you could make the argument here, right? You could make the argument that, you know, like it would be a conflict of interest, but guess what, I don't make the rules, you don't make the rules. We're just here to answer the question. So, you know, you can't tell them, oh, you should sue this person, and then you audit the results of that lawsuit, right? That would be conflict of interest. And actuarial services, so this is you're generating the numbers for the clients that they're using that you would then be auditing. So again, a little bit of a

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Ethics & Independence

Module: 3 Concepts, 42 Videos

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AICPA Code of Professional Conduct Objectives

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Introduction to AICPA Code of Professional Conduct

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