CPA Ethics Practice Test
(2026–2027)
Exam Questions With Verified Correct
Solutions |100% Guaranteed Pass |
Latest Version | Grade A+
,Which of the following requires that any changes in (b) is correct. Code of Professional Conduct,
them be approved by the members of the AICPA? Structure, says that Principles and Rules must be
(a) Rules and interpretations of the rules. approved by the AI CPA members.
(b) Principles and rules. (a) is wrong and ...
(c) Principles, rules and interpretations of the rules. ( c) is wrong since interpretations are prepared and issued by the Professional
Ethics Executive Committee without obtaining approval by the members.
The results of a guilty finding by a Trial Board will (c) is correct. Code of Professional Conduct,
be: Enforcement says that Trial Board convictions must
(a) published by the AICPA, but the member 's name be published with the member's name disclosed.
will not be disclosed. (a) is then wrong since the name must be disclosed.
(b) published by the AICPA. and the member 's name (b) is also wrong since the Trial Board does not have the option of deciding
will be disclosed if the Trial Board votes to do whether or not the member's name will be disclosed.
so.
(c) published by the AICPA with the member 's
name given.
An interpretation or ethics ruling usually becomes (c) is corect. Code of Professional Conduct,
effective: Structure, says that interpretations and rulings are
(a) the first day of the month following the normally effective the last day of the month they are published in the Journal of
month it is published in the Journal of Accountancy. Accountancy.
(b) two weeks after it is published in The CPA (a) and (b) are therefore wrong.
Letter.
(c) the last day of the month in which it is
published in the Journal of Accountancy.
A CPA in public practice ______________ avoid operating (b) is correct. Code of Professional Conduct, Coverage, says that no CPA
under a code of professional ethics by choosing not practicing public accounting may avoid operating under a code of ethics. The
to join either the AICPA or any state CPA society. CPA may not join the AI CPA or his or her state CPA society and therefore
(a) may would not be subject to their codes of ethics. The CPA, however, cannot avoid
(b) may not being subject to his or her state board of accountancy's code of ethics
The accounting profession 's public includes (d) is the correct answer. As (see Article II) the
(a) Governmental agencies. CPA's public includes everyone that relies on them. This then would include
(b) Credit grantors. (a) governmental agencies,
(c) Investors. (b) credit grantors and
(d) All of the above (c) investors.
Compliance with the AICPA Code of Professional (c) is the correct answer. Composition, Applicability
Conduct depends primarily on: and Compliance in the Articles says that compliance with the code, as with all
(a) Public opinion and reinforcement of one's attestation standards in an open society, depends primarily on member 's understanding
peers. of the code and voluntary compliance with it.
(b) Disciplinary proceedings when the code is (a) is wrong. This section says that reinforcement by one's peers and public
violated. opinion is secondary
(c) Member's understanding the code and voluntary in obtaining compliance with the code.
compliance with it. (b) is also wrong since this section says disciplinary proceedings against those
that violate the code are the ultimate or final method of obtaining compliance.
,The Principles state that a member has responsibility (d) is correct. The Preamble to the Articles says that members have
to: (a) a responsibility to colleagues,
(a) Colleagues. (b) to clients and
(b) Clients. (c) to the public.
(c) The public.
(d) All of the above.
The Principles in the AICPA Code of Professional (b) is correct. Principles are not enforceable under
Conduct ___________________ enforceable under their own their own terms as shown in the section Purpose. Principles are goal-oriented
terms. and the rules of
(a) are. ethics are made and adopted within that framework.
(b) are not.
A distinguishing mark of a profession is: (a) is correct. As stated in Article II, the distinguishing mark of a profession is
(a) Acceptance of its responsibility to the public. acceptance of its responsibility to the public.
(b) The esteem with which it is held by the public. (b) The esteem by which it is held by the public
(c) Its ability to influence legislation. will come when it shows its responsibility to the public.
(c) Influencing legislation may be important to the profession but it is not the
distinguishing
mark of a profession.
The AICPA Code of Professional Conduct provides (b) is correct. The Code of Professional Conduct
guidance and rules for: provides rules for all members, As stated in the Articles, section Composition,
(a) Only members in public practice. the membership
(b) All members. adopted the code to provide guidance and rules for all members-those in
(c) Only members engaged in rendering attestation public practice, in
services. industry, in government and in education.
Due care requires a member to: (b) is correct. Article V requires a member to per-form his professional work
(a) Perform work for clients at the lowest cost. with competence and diligence.
(b) Perform work for the clients with competence (a) The Principles do not address the subject of fees or
and diligence. (c) Continuing Professional Education.
(c) Complete each year a specified number of
hours of Continuing Professional Education
courses.
, Jones & Barnes, a public accounting firm, has offices (b) is correct. (Covered member (d)) includes
in Minneapolis, Chicago and 10 other cities. The firm 's partners in the office where the attest engagement
executive office and the managing partner are in partner is located. Since Minneapolis does all the
Chicago. work for this client the engagement partner has to
Each office does all the work and issues the audit be in Minneapolis. Gilbert is in the Chicago office
reports and therefore he is not a covered member.
for the clients of that office. Black & Co. is an audit
client
of the Minneapolis office.
State whether in the following situations the individual
would be a "covered member" with respect to the 2001
calendar year audit of Black & Co.
Gilbert , a tax partner in the Chicago office
(a) is a covered member.
(b) is not a covered member.
Jones & Barnes, a public accounting firm, has offices (b) is correct. (Covered member (a)), includes all
in Minneapolis, Chicago and 10 other cities. The firm 's people that work on the attest engagement team.
executive office and the managing partner are in Thus professional staff that work on the audit are
Chicago. covered members. Since Jacobs does no work on
Each office does all the work and issues the audit the Black & Co. engagement, he is not a covered
reports member. The fact that he is a manager has no bearing on the answer.
for the clients of that office. Black & Co. is an audit
client
of the Minneapolis office.
State whether in the following situations the individual
would be a "covered member" with respect to the 2001
calendar year audit of Black & Co.
Jacobs, an audit manager in the Minneapolis office,
who does no work on the Black & Co. engagement.
(a) is a covered member.
(b) is not a covered member.
Jones & Barnes, a public accounting firm, has offices (a) is correct. (Covered member (d)) includes all
in Minneapolis, Chicago and 10 other cities. The firm 's partners in the office where the lead attest engagement partner works. Since
executive office and the managing partner are in Minneapolis does all the work for this client, the lead attest engagement
Chicago. partner has to be in Minneapolis. Larson is a partner in the Minneapolis office,
Each office does all the work and issues the audit and therefore he is a covered member even though he never works on the
reports Black & Co. engagement
for the clients of that office. Black & Co. is an audit
client
of the Minneapolis office.
State whether in the following situations the individual
would be a "covered member" with respect to the 2001
calendar year audit of Black & Co.
Larson, a consulting services partner, in the Minneapolis
office who has not done any work for Black & Co.
(a) is a covered member
(b) is not a covered member
(2026–2027)
Exam Questions With Verified Correct
Solutions |100% Guaranteed Pass |
Latest Version | Grade A+
,Which of the following requires that any changes in (b) is correct. Code of Professional Conduct,
them be approved by the members of the AICPA? Structure, says that Principles and Rules must be
(a) Rules and interpretations of the rules. approved by the AI CPA members.
(b) Principles and rules. (a) is wrong and ...
(c) Principles, rules and interpretations of the rules. ( c) is wrong since interpretations are prepared and issued by the Professional
Ethics Executive Committee without obtaining approval by the members.
The results of a guilty finding by a Trial Board will (c) is correct. Code of Professional Conduct,
be: Enforcement says that Trial Board convictions must
(a) published by the AICPA, but the member 's name be published with the member's name disclosed.
will not be disclosed. (a) is then wrong since the name must be disclosed.
(b) published by the AICPA. and the member 's name (b) is also wrong since the Trial Board does not have the option of deciding
will be disclosed if the Trial Board votes to do whether or not the member's name will be disclosed.
so.
(c) published by the AICPA with the member 's
name given.
An interpretation or ethics ruling usually becomes (c) is corect. Code of Professional Conduct,
effective: Structure, says that interpretations and rulings are
(a) the first day of the month following the normally effective the last day of the month they are published in the Journal of
month it is published in the Journal of Accountancy. Accountancy.
(b) two weeks after it is published in The CPA (a) and (b) are therefore wrong.
Letter.
(c) the last day of the month in which it is
published in the Journal of Accountancy.
A CPA in public practice ______________ avoid operating (b) is correct. Code of Professional Conduct, Coverage, says that no CPA
under a code of professional ethics by choosing not practicing public accounting may avoid operating under a code of ethics. The
to join either the AICPA or any state CPA society. CPA may not join the AI CPA or his or her state CPA society and therefore
(a) may would not be subject to their codes of ethics. The CPA, however, cannot avoid
(b) may not being subject to his or her state board of accountancy's code of ethics
The accounting profession 's public includes (d) is the correct answer. As (see Article II) the
(a) Governmental agencies. CPA's public includes everyone that relies on them. This then would include
(b) Credit grantors. (a) governmental agencies,
(c) Investors. (b) credit grantors and
(d) All of the above (c) investors.
Compliance with the AICPA Code of Professional (c) is the correct answer. Composition, Applicability
Conduct depends primarily on: and Compliance in the Articles says that compliance with the code, as with all
(a) Public opinion and reinforcement of one's attestation standards in an open society, depends primarily on member 's understanding
peers. of the code and voluntary compliance with it.
(b) Disciplinary proceedings when the code is (a) is wrong. This section says that reinforcement by one's peers and public
violated. opinion is secondary
(c) Member's understanding the code and voluntary in obtaining compliance with the code.
compliance with it. (b) is also wrong since this section says disciplinary proceedings against those
that violate the code are the ultimate or final method of obtaining compliance.
,The Principles state that a member has responsibility (d) is correct. The Preamble to the Articles says that members have
to: (a) a responsibility to colleagues,
(a) Colleagues. (b) to clients and
(b) Clients. (c) to the public.
(c) The public.
(d) All of the above.
The Principles in the AICPA Code of Professional (b) is correct. Principles are not enforceable under
Conduct ___________________ enforceable under their own their own terms as shown in the section Purpose. Principles are goal-oriented
terms. and the rules of
(a) are. ethics are made and adopted within that framework.
(b) are not.
A distinguishing mark of a profession is: (a) is correct. As stated in Article II, the distinguishing mark of a profession is
(a) Acceptance of its responsibility to the public. acceptance of its responsibility to the public.
(b) The esteem with which it is held by the public. (b) The esteem by which it is held by the public
(c) Its ability to influence legislation. will come when it shows its responsibility to the public.
(c) Influencing legislation may be important to the profession but it is not the
distinguishing
mark of a profession.
The AICPA Code of Professional Conduct provides (b) is correct. The Code of Professional Conduct
guidance and rules for: provides rules for all members, As stated in the Articles, section Composition,
(a) Only members in public practice. the membership
(b) All members. adopted the code to provide guidance and rules for all members-those in
(c) Only members engaged in rendering attestation public practice, in
services. industry, in government and in education.
Due care requires a member to: (b) is correct. Article V requires a member to per-form his professional work
(a) Perform work for clients at the lowest cost. with competence and diligence.
(b) Perform work for the clients with competence (a) The Principles do not address the subject of fees or
and diligence. (c) Continuing Professional Education.
(c) Complete each year a specified number of
hours of Continuing Professional Education
courses.
, Jones & Barnes, a public accounting firm, has offices (b) is correct. (Covered member (d)) includes
in Minneapolis, Chicago and 10 other cities. The firm 's partners in the office where the attest engagement
executive office and the managing partner are in partner is located. Since Minneapolis does all the
Chicago. work for this client the engagement partner has to
Each office does all the work and issues the audit be in Minneapolis. Gilbert is in the Chicago office
reports and therefore he is not a covered member.
for the clients of that office. Black & Co. is an audit
client
of the Minneapolis office.
State whether in the following situations the individual
would be a "covered member" with respect to the 2001
calendar year audit of Black & Co.
Gilbert , a tax partner in the Chicago office
(a) is a covered member.
(b) is not a covered member.
Jones & Barnes, a public accounting firm, has offices (b) is correct. (Covered member (a)), includes all
in Minneapolis, Chicago and 10 other cities. The firm 's people that work on the attest engagement team.
executive office and the managing partner are in Thus professional staff that work on the audit are
Chicago. covered members. Since Jacobs does no work on
Each office does all the work and issues the audit the Black & Co. engagement, he is not a covered
reports member. The fact that he is a manager has no bearing on the answer.
for the clients of that office. Black & Co. is an audit
client
of the Minneapolis office.
State whether in the following situations the individual
would be a "covered member" with respect to the 2001
calendar year audit of Black & Co.
Jacobs, an audit manager in the Minneapolis office,
who does no work on the Black & Co. engagement.
(a) is a covered member.
(b) is not a covered member.
Jones & Barnes, a public accounting firm, has offices (a) is correct. (Covered member (d)) includes all
in Minneapolis, Chicago and 10 other cities. The firm 's partners in the office where the lead attest engagement partner works. Since
executive office and the managing partner are in Minneapolis does all the work for this client, the lead attest engagement
Chicago. partner has to be in Minneapolis. Larson is a partner in the Minneapolis office,
Each office does all the work and issues the audit and therefore he is a covered member even though he never works on the
reports Black & Co. engagement
for the clients of that office. Black & Co. is an audit
client
of the Minneapolis office.
State whether in the following situations the individual
would be a "covered member" with respect to the 2001
calendar year audit of Black & Co.
Larson, a consulting services partner, in the Minneapolis
office who has not done any work for Black & Co.
(a) is a covered member
(b) is not a covered member
