Question

When a member performs non-attest services for an attest client, management is required to designate an individual to oversee those services. Which choice best describes the qualities that are required of that person under AICPA rules?
A. He or she must possess the same level of expertise as the CPA.
B. He or she must possess the same level of education as the CPA.
C. He or she must have suitable skill, knowledge, or experience.
D. He or she must be able to supervise the CPA in the day-to-day rendering of the services.

Answer 1

Answer:

C. He or she must have suitable skill, knowledge, or experience

Explanation:

As per American Institute of Certified Public Accountants (AICPA), members have to abide by a strict code of conduct which relates to performance and discharge of responsibilities.

When a member performs non attest services for a attest client, an individual for oversight needs to be designated who must possess suitable skills, knowledge, or experience.

The designated person should be able to understand the scope, nature and objectives of non attest services.

Such a person should agree upon the nature scope and objectives of such non attest services performed by the member and he is not required to supervise the member for routine discharge of services.

The person should receive progress reports and periodically review them.