ACCT 4553 ETHICS FINAL AICPA UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
Which step in the decision-making model is characterized by putting yourself
in the shoes of a person that the company's policies could impact
Answer:
- Consider the effect on Stakeholders
Question:
Which step in the decision-making model is characterized by asking the
question, "if you had to discuss your decision in public, would you be
concerned about how it reflects on your ethics?
Answer:
- Consider your comfort level
Question:
CPAs must follow the rules and standards promulgated by which body? (Hint:
Whose rules would a CPA be especially motivated to follow?)
Answer:
- Your State CPA licensing board
Question:
Who establishes rules with respect to auditing and other attestation
engagements, quality control of audits, and independence of public auditors?
Answer:
- PCAOB
Question:
If each entity tells you, a publicly traded company, a different set of
independence rules, who do you follow first?
Answer:
- The most restrictive re-quirements
Question:
As a professional CPA, I have the greatest responsibility to serve:
Answer:
- The publics' interest
Question:
Which of the following is a specific rule of integrity and objectivity?
Answer:
- Be free from conflicts and interest
Question:
I also must maintain my objectivity, be free of conflicts of interest, and
discharge all my responsibilities with due
Answer:
Care
, Question:
As a CPA, I should especially maintain ______ and _______ when carrying out
public duties as it relates to conflicts of interest
Answer:
- Independence, Objectivity
Question:
Which of the following is not a member of "private accounting"?
Answer:
- External Audit
Question:
Which factor must be in place for you to perform services in light of a
potential conflict of interest?
Answer:
- You have determined that your threats to objectivity are at an acceptable
level
Question:
What approach must AICPA members use to evaluate a matter that the code
does not address?
Answer:
- Threats and Safeguards
Question:
The threat that you will not act with objectivity because your interests are
opposed to your clients describes which of the following?
Answer:
- Adverse interest threat
Question:
Which of the following is not a possible threat related to gifts and
entertainment?
Answer:
- Favoritism
Question:
Which of these is an example of a "quid pro quo" situation?
Answer:
- A client buying an apple watch for an auditor in exchange for a clean audit
opinion
Question:
Suppose a statue exists in your state that allows you to place a lien on client
records in the event of unpaid fees. Given these facts are you obligated to
return the client's records?
Answer:
- Yes, these records should be provided upon request
Question:
As a part of your work, you prepared several schedules relating to the client's
investment trading activity. He now says he needs those schedules so that he
QUESTIONS AND CORRECT ANSWERS
Question:
Which step in the decision-making model is characterized by putting yourself
in the shoes of a person that the company's policies could impact
Answer:
- Consider the effect on Stakeholders
Question:
Which step in the decision-making model is characterized by asking the
question, "if you had to discuss your decision in public, would you be
concerned about how it reflects on your ethics?
Answer:
- Consider your comfort level
Question:
CPAs must follow the rules and standards promulgated by which body? (Hint:
Whose rules would a CPA be especially motivated to follow?)
Answer:
- Your State CPA licensing board
Question:
Who establishes rules with respect to auditing and other attestation
engagements, quality control of audits, and independence of public auditors?
Answer:
- PCAOB
Question:
If each entity tells you, a publicly traded company, a different set of
independence rules, who do you follow first?
Answer:
- The most restrictive re-quirements
Question:
As a professional CPA, I have the greatest responsibility to serve:
Answer:
- The publics' interest
Question:
Which of the following is a specific rule of integrity and objectivity?
Answer:
- Be free from conflicts and interest
Question:
I also must maintain my objectivity, be free of conflicts of interest, and
discharge all my responsibilities with due
Answer:
Care
, Question:
As a CPA, I should especially maintain ______ and _______ when carrying out
public duties as it relates to conflicts of interest
Answer:
- Independence, Objectivity
Question:
Which of the following is not a member of "private accounting"?
Answer:
- External Audit
Question:
Which factor must be in place for you to perform services in light of a
potential conflict of interest?
Answer:
- You have determined that your threats to objectivity are at an acceptable
level
Question:
What approach must AICPA members use to evaluate a matter that the code
does not address?
Answer:
- Threats and Safeguards
Question:
The threat that you will not act with objectivity because your interests are
opposed to your clients describes which of the following?
Answer:
- Adverse interest threat
Question:
Which of the following is not a possible threat related to gifts and
entertainment?
Answer:
- Favoritism
Question:
Which of these is an example of a "quid pro quo" situation?
Answer:
- A client buying an apple watch for an auditor in exchange for a clean audit
opinion
Question:
Suppose a statue exists in your state that allows you to place a lien on client
records in the event of unpaid fees. Given these facts are you obligated to
return the client's records?
Answer:
- Yes, these records should be provided upon request
Question:
As a part of your work, you prepared several schedules relating to the client's
investment trading activity. He now says he needs those schedules so that he
