LATEST WGU D550 ETHICS FOR ACCOUNTANTS PRE ASSESSMENT
(PA) EXAM ACTUAL 2026/2027 COMPLETE ACCURATE QUESTIONS
AND CORRECT DETAILED ANSWERS WITH RATIONALES
(VERIFIED ANSWERS) CURRENTLY UPDATED VERSION 2026
EDITION |GUARANTEED PASS A+ (BRAND NEW!) FULL REVISED
ETHICS FOR ACCOUNTANTS D550 WGU PRE ASSESSMENT
APPROVED EXAM
1. Which fundamental principle of the AICPA Code requires a CPA to be honest
and candid within the constraints of client confidentiality?
A) Objectivity
B) Integrity (CORRECT ANSWER)
C) Due care
D) Professional behavior
Rationale: Integrity requires honesty and straightforwardness in all professional
relationships. Objectivity pertains to impartiality; due care relates to competence;
professional behavior concerns compliance with standards.
2. Under the IESBA conceptual framework, after identifying a threat to compliance
with ethical principles, the accountant must:
A) Immediately withdraw from the engagement
,B) Evaluate the significance of the threat and apply safeguards (CORRECT
ANSWER)
C) Notify the client’s legal counsel
D) Document the threat and disregard it if minor
Rationale: The framework requires evaluation and application of safeguards.
Withdrawal is a last resort, not the first step.
3. A CPA owns 5% of the outstanding shares of an audit client. This creates which
type of threat?
A) Advocacy threat
B) Self-interest threat (CORRECT ANSWER)
C) Familiarity threat
D) Management participation threat
Rationale: Direct financial interest in a client creates a self-interest threat because
the CPA may benefit from the audit outcome.
4. Which of the following is a prohibited non-audit service for an SEC audit client
under Sarbanes-Oxley?
, A) Tax compliance
B) Internal audit outsourcing (CORRECT ANSWER)
C) Tax preparation
D) Advisory on accounting standards
Rationale: SOX Section 201 explicitly prohibits internal audit outsourcing to the
external auditor for public companies.
5. A CPA is asked to backdate a contract to improve the client’s financial ratios.
The CPA refuses. Which principle is being upheld?
A) Confidentiality
B) Integrity (CORRECT ANSWER)
C) Professional behavior
D) Due care
Rationale: Backdating is dishonest; refusing upholds integrity (honesty and
straightforwardness).
6. Under the AICPA Code, a contingent fee for an audit engagement is:
(PA) EXAM ACTUAL 2026/2027 COMPLETE ACCURATE QUESTIONS
AND CORRECT DETAILED ANSWERS WITH RATIONALES
(VERIFIED ANSWERS) CURRENTLY UPDATED VERSION 2026
EDITION |GUARANTEED PASS A+ (BRAND NEW!) FULL REVISED
ETHICS FOR ACCOUNTANTS D550 WGU PRE ASSESSMENT
APPROVED EXAM
1. Which fundamental principle of the AICPA Code requires a CPA to be honest
and candid within the constraints of client confidentiality?
A) Objectivity
B) Integrity (CORRECT ANSWER)
C) Due care
D) Professional behavior
Rationale: Integrity requires honesty and straightforwardness in all professional
relationships. Objectivity pertains to impartiality; due care relates to competence;
professional behavior concerns compliance with standards.
2. Under the IESBA conceptual framework, after identifying a threat to compliance
with ethical principles, the accountant must:
A) Immediately withdraw from the engagement
,B) Evaluate the significance of the threat and apply safeguards (CORRECT
ANSWER)
C) Notify the client’s legal counsel
D) Document the threat and disregard it if minor
Rationale: The framework requires evaluation and application of safeguards.
Withdrawal is a last resort, not the first step.
3. A CPA owns 5% of the outstanding shares of an audit client. This creates which
type of threat?
A) Advocacy threat
B) Self-interest threat (CORRECT ANSWER)
C) Familiarity threat
D) Management participation threat
Rationale: Direct financial interest in a client creates a self-interest threat because
the CPA may benefit from the audit outcome.
4. Which of the following is a prohibited non-audit service for an SEC audit client
under Sarbanes-Oxley?
, A) Tax compliance
B) Internal audit outsourcing (CORRECT ANSWER)
C) Tax preparation
D) Advisory on accounting standards
Rationale: SOX Section 201 explicitly prohibits internal audit outsourcing to the
external auditor for public companies.
5. A CPA is asked to backdate a contract to improve the client’s financial ratios.
The CPA refuses. Which principle is being upheld?
A) Confidentiality
B) Integrity (CORRECT ANSWER)
C) Professional behavior
D) Due care
Rationale: Backdating is dishonest; refusing upholds integrity (honesty and
straightforwardness).
6. Under the AICPA Code, a contingent fee for an audit engagement is:
