A CPA would violate the Due Care Principle if he/she:
A) Undertook a professional engagement without having the requisite background, knowledge and experience.
B) Specializes in the industry of the client, even offering training classes for other accounting firms on the industry.
C) The accounting firm uses two external partner reviews on high risk audits or clients.
D) Performs tax services for an audit client with audit committee approval.

Question

Quizplus · Accepted Answer

Undertaking a professional engagement without having the requisite background, knowledge, and experience would be a violation of the Due Care Principle, as it is the responsibility of the CPA to ensure that they have the necessary expertise to perform the engagement competently. The other options do not necessarily violate the Due Care Principle. B and C actually demonstrate a commitment to due care by either specializing in a particular industry or using external partner reviews, while D is an example of proper approval procedures being followed.

A CPA Would Violate the Due Care Principle If He/she