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Good CPAs
Bad CPAs
CPA Requirements
CPA Regulators
Chapters 18 & 21
100
A certified public accountant will not express this if he or she is aware that an individual in the firm is not independent and that the individual is a covered certified public accountant or is otherwise required to be independent.
What is an opinion?
100
A candidate who has not received credit for all section within the time frame allotted.
What is a re-examination candidate?
100
These are the academic requirements to take the licensure examination and the academic requirements to apply for licensure (provide both).
What are 1) 120 semester hours or 180 quarter hours from an accredited university (concentration in accounting and business), and 2) 150 semester hours or 225 quarter hours of college education from an accredited university (concentration in accounting and business)?
100
This is the purpose of fees collected by the Division of Certified Public Accounting.
What is to fund public accounting regulation?
100
Clients may recover damages from accountants for breach of contract, negligence, or fraud. This is an example of breach of contract.
What is failing to deliver an audit report on time or withdrawing from an audit engagement without justification?
200
Offering to perform or performing for the public one or more types of services involving the expression of an opinion on financial statements
What is “Practicing public accountancy” or “public accounting” or Practice of public accounting/cy”
200
An example of a violation for which there is no substantial threat to the public health, safety and welfare but for which a citation may be issued:
What are a. Practicing on an inactive or delinquent license b. Licensees practicing in an unlicensed firm c. Licensees who complete continuing professional education requirements timely but who are found to be deficient after Dec 1st of their renewal year d. Licensees who fail to timely submit complete documentation for CE audit e. Retention of client records when records are returned more than three months after the date requested f. Failure to timely report being convicted or found guilty of a crime
200
A three-month period in which candidates have an opportunity to take the CPA Examination
What is an examination window?
200
This is the length of time CPA members on the Board of Accountancy must have practiced public accounting.
What is 5 years?
200
Much to the delight of the Big Six, the Private Securities Litigation Reform Act (PSLRA) established this.
What is proportionate liability for defendants who did not knowingly engage in securities fraud.
300
Each Florida certified public accountant shall commence his/her reestablishment period for continuing education on the date indicated on his/her Florida certificate, and the period will end on this date following the initial date indicated on the certification.
What is the third June 30th following the initial designation?
300
Three types of penalties that may be imposed by the board or department given inappropriate behavior by CPA:
What are: a. Refusal to certify, or certification with restrictions b. Suspension or permanent revocation of a license c. Restriction of practice d. Imposition of an administrative fine not to exceed $5,000 for each count or separate offense e. Issuance of a reprimand f. Placing licensee on probation for a period of time g. Corrective action
300
These are the non-academic requirements necessary to be licensed as a Florida CPA.
What are 1) 1 year of working experience, and 2) good moral character? (OK if also include 'Passing the licensure examination').
300
This is the composition of Board of Accountancy members; provide CPAs and non-CPAs.
What is 9 – 7 CPAs, 2 non-CPAs?
300
Under the Securities Act of 1933, investors must prove these two things in order to win a lawsuit against an auditor.
What are that they suffered damages and that the audited financial statements contain a material misstatement or omission.
400
The definition of Good Moral Character.
What is a personal history of honesty, fairness, and respect for the rights of others and for the laws of this state and nation.
400
This is the minimum penalty for a misdemeanor charge of a criminal conviction relating to accounting.
What is a reprimand?
400
The Board of Accountancy has the authority to determine these standards in regards to the licensure exam. Name one.
What is 1) constituting a passing grade for the licensure exam, OR 2) determining which educational institutions shall be deemed to be accredited colleges or universities, OR 3) determining the courses and number of hours that constitute a major in accounting, OR 4) determining the courses and number of hours that constitute additional accounting courses?
400
An attorney employed by the Board of Accountancy may not do these with respect to the same matter.
What is both prosecute a matter and provide legal services with respect to the same matter?
400
According to Ch. 18, these two legal innovations that gained popularity during the 1970’s changed the risk/return calculus of suing accounting firms.
What are contingency fees and class action lawsuits?
500
A good CPA includes these stipulations in an Understanding with the Entity. Name 2.
What are 1) a description of the nature and limitations of the services to be performed, 2) that the engagement cannot be relied upon to disclose errors, fraud, or illegal acts, and 3) whether or not the entity preparing the financial statements is or is not licensed by the Florida Board of Accountancy.
500
CPAs not complying with these are in violation of the general standards of competence. Name 3.
What are 1) Professional competence, 2) Due professional care, 3) Planning and supervision, and 4) sufficient relevant data
500
In any given reestablishment period, each current/active Florida CPA must have completed during the two-year period, at least this many hours of educational instruction or training in public accounting subjects, of which at least this many hours must have been in accounting related-and/or auditing related subjects.
What are 80 and 20. DAILY DOUBLE
500
The Division of Certified Public Accounting provides several services. Name 2
What are 1) recordkeeping services, 2) legal services, 3) examination services, 4) investigative services, 5) Any services in chapter 455 necessary to perform the duties of this chapter
500
The white paper discussed in Chapter 21 named three “flaws” in the nation’s tort liability system. Name 2.
What are 1) the doctrine of joint and several liability, 2) the fact that victorious defendants couldn’t recover legal costs, and 3) the unfairness of punitive damages.