WGU D550 ETHICS FOR ACCOUNTANTS OA FINAL EXAM –
QUESTIONS AND ANSWERS | VERIFIED AND WELL DETAILED
ANSWERS | PLUS RATIONALES | GUARANTEED PASS | 2026/27
LATEST UPDATE | EXAM PREP | STUDY GUIDE | PRACTICE TEST
SECTION ONE: QUESTIONS 1–50
1. Which AICPA principle requires an accountant to be impartial and intellectually honest?
A. Integrity
B. Objectivity and Independence
C. Due Care
D. Confidentiality
Correct Answer: B. Objectivity and Independence
Rationale: Objectivity is the state of mind that allows CPAs to perform services without being affected by
influences that compromise professional judgment. Independence is a derivative of objectivity required for attest
engagements. Integrity involves being straightforward and honest, but impartiality is the essence of objectivity .
,2. Under the AICPA Code of Professional Conduct, which principle requires members to exercise sensitive
professional and moral judgments in all activities?
A. Scope and Nature of Services
B. The Public Interest
C. Integrity
D. Objectivity and Independence
Correct Answer: B. The Public Interest
Rationale: The Public Interest principle states that members accept a responsibility to act in a way that serves
the public, honors the public trust, and demonstrates commitment to professionalism. This principle explicitly
requires members to place the public interest above personal or client interests .
3. According to the Integrity principle under the AICPA Code, a member should:
A. Be free from conflicts of interest
B. Perform only those services they are competent to perform
C. Subordinate personal gains to the public trust
D. Observe all technical standards
,Correct Answer: C. Subordinate personal gains to the public trust
Rationale: Integrity requires members to be honest and candid within constraints of client confidentiality,
placing the public trust above personal gain. The Integrity principle specifically addresses the duty to not
subordinate judgment to others and to be straightforward and honest in all professional relationships .
4. A CPA is offered tickets to a sold-out concert by the CFO of an audit client. The tickets have a face value
of $500 but are being scalped for $2,000. According to AICPA independence rules, the CPA should:
A. Accept the tickets if used for personal enjoyment
B. Decline the gift because it is a prohibited gift from a client
C. Accept if disclosed in footnotes
D. Accept and report as income
Correct Answer: B. Decline the gift because it is a prohibited gift from a client
Rationale: Gifts from clients can impair independence if they create a self-interest threat; the fair value is
irrelevant if the gift is significant in any amount. AICPA rules prohibit accepting gifts from attest clients that
could impair objectivity, regardless of the stated value .
, 5. Which threat to independence is created when a CPA's spouse owns direct equity in an audit client?
A. Advocacy threat
B. Self-interest threat
C. Self-review threat
D. Familiarity threat
Correct Answer: B. Self-interest threat
Rationale: A direct financial interest in an audit client, whether held by the CPA or an immediate family
member (such as a spouse), creates a self-interest threat because the CPA benefits financially from the client's
performance. Under AICPA rules, a covered member's immediate family includes spouse and dependents .
6. Under AICPA rules, independence is NOT required for which type of engagement?
A. Audits
B. Reviews
C. Compilations
D. Agreed-upon procedures
Correct Answer: C. Compilations
QUESTIONS AND ANSWERS | VERIFIED AND WELL DETAILED
ANSWERS | PLUS RATIONALES | GUARANTEED PASS | 2026/27
LATEST UPDATE | EXAM PREP | STUDY GUIDE | PRACTICE TEST
SECTION ONE: QUESTIONS 1–50
1. Which AICPA principle requires an accountant to be impartial and intellectually honest?
A. Integrity
B. Objectivity and Independence
C. Due Care
D. Confidentiality
Correct Answer: B. Objectivity and Independence
Rationale: Objectivity is the state of mind that allows CPAs to perform services without being affected by
influences that compromise professional judgment. Independence is a derivative of objectivity required for attest
engagements. Integrity involves being straightforward and honest, but impartiality is the essence of objectivity .
,2. Under the AICPA Code of Professional Conduct, which principle requires members to exercise sensitive
professional and moral judgments in all activities?
A. Scope and Nature of Services
B. The Public Interest
C. Integrity
D. Objectivity and Independence
Correct Answer: B. The Public Interest
Rationale: The Public Interest principle states that members accept a responsibility to act in a way that serves
the public, honors the public trust, and demonstrates commitment to professionalism. This principle explicitly
requires members to place the public interest above personal or client interests .
3. According to the Integrity principle under the AICPA Code, a member should:
A. Be free from conflicts of interest
B. Perform only those services they are competent to perform
C. Subordinate personal gains to the public trust
D. Observe all technical standards
,Correct Answer: C. Subordinate personal gains to the public trust
Rationale: Integrity requires members to be honest and candid within constraints of client confidentiality,
placing the public trust above personal gain. The Integrity principle specifically addresses the duty to not
subordinate judgment to others and to be straightforward and honest in all professional relationships .
4. A CPA is offered tickets to a sold-out concert by the CFO of an audit client. The tickets have a face value
of $500 but are being scalped for $2,000. According to AICPA independence rules, the CPA should:
A. Accept the tickets if used for personal enjoyment
B. Decline the gift because it is a prohibited gift from a client
C. Accept if disclosed in footnotes
D. Accept and report as income
Correct Answer: B. Decline the gift because it is a prohibited gift from a client
Rationale: Gifts from clients can impair independence if they create a self-interest threat; the fair value is
irrelevant if the gift is significant in any amount. AICPA rules prohibit accepting gifts from attest clients that
could impair objectivity, regardless of the stated value .
, 5. Which threat to independence is created when a CPA's spouse owns direct equity in an audit client?
A. Advocacy threat
B. Self-interest threat
C. Self-review threat
D. Familiarity threat
Correct Answer: B. Self-interest threat
Rationale: A direct financial interest in an audit client, whether held by the CPA or an immediate family
member (such as a spouse), creates a self-interest threat because the CPA benefits financially from the client's
performance. Under AICPA rules, a covered member's immediate family includes spouse and dependents .
6. Under AICPA rules, independence is NOT required for which type of engagement?
A. Audits
B. Reviews
C. Compilations
D. Agreed-upon procedures
Correct Answer: C. Compilations
