WGU D550 Ethics for Accountants | Western
Governors University | 2026 | Objective
Assessment Practice Questions with Verified Answers
1. Which principle of the AICPA Code 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
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.
2. According to the Integrity principle, a member should:
a) Be free from conflicts of interest
1
,b) Perform only those services they are competent to
perform
c) Subordinate personal gains to the public trust
d) Observe all technical standards
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.
3. The Objectivity and Independence principle applies to:
a) All members in all services
b) Only members in tax practice
c) Only members in attest services
d) Members in consulting only
Answer: a) All members in all services
Rationale: Objectivity applies to all members;
independence is required for attest engagements. The
principle governs both.
2
,4. A CPA prepares financial projections for a client
knowing the client will use them to mislead a bank. This
violates which principle?
a) Scope and nature of services
b) Integrity and objectivity
c) Due care
d) Confidentiality
Answer: b) Integrity and objectivity
Rationale: Knowingly assisting in misleading a third party
is a direct violation of integrity (honesty) and objectivity
(lack of bias).
5. The Due Care principle requires a member to:
a) Charge fees commensurate with risk
b) Discharge responsibilities with competence and
diligence
c) Maintain confidentiality forever
d) Accept only audit clients
3
, Answer: b) Discharge responsibilities with competence and
diligence
Rationale: Due care means carrying out professional
responsibilities with competence, thoroughness, and timely
performance.
6. Under the Scope and Nature of Services principle, a
member should:
a) Offer any service a client requests
b) Consider whether providing a service might impair
independence
c) Refuse all consulting engagements
d) Never use third-party service providers
Answer: b) Consider whether providing a service might
impair independence
Rationale: Before providing a service, a member must
assess if it conflicts with professional responsibilities.
7. Which principle explicitly mentions the public trust?
a) Integrity
4
Governors University | 2026 | Objective
Assessment Practice Questions with Verified Answers
1. Which principle of the AICPA Code 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
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.
2. According to the Integrity principle, a member should:
a) Be free from conflicts of interest
1
,b) Perform only those services they are competent to
perform
c) Subordinate personal gains to the public trust
d) Observe all technical standards
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.
3. The Objectivity and Independence principle applies to:
a) All members in all services
b) Only members in tax practice
c) Only members in attest services
d) Members in consulting only
Answer: a) All members in all services
Rationale: Objectivity applies to all members;
independence is required for attest engagements. The
principle governs both.
2
,4. A CPA prepares financial projections for a client
knowing the client will use them to mislead a bank. This
violates which principle?
a) Scope and nature of services
b) Integrity and objectivity
c) Due care
d) Confidentiality
Answer: b) Integrity and objectivity
Rationale: Knowingly assisting in misleading a third party
is a direct violation of integrity (honesty) and objectivity
(lack of bias).
5. The Due Care principle requires a member to:
a) Charge fees commensurate with risk
b) Discharge responsibilities with competence and
diligence
c) Maintain confidentiality forever
d) Accept only audit clients
3
, Answer: b) Discharge responsibilities with competence and
diligence
Rationale: Due care means carrying out professional
responsibilities with competence, thoroughness, and timely
performance.
6. Under the Scope and Nature of Services principle, a
member should:
a) Offer any service a client requests
b) Consider whether providing a service might impair
independence
c) Refuse all consulting engagements
d) Never use third-party service providers
Answer: b) Consider whether providing a service might
impair independence
Rationale: Before providing a service, a member must
assess if it conflicts with professional responsibilities.
7. Which principle explicitly mentions the public trust?
a) Integrity
4
