CPA ETHICS Actual Exam Questions and Correct Answer Latest Update

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CONTENTS
 CPA Ethics Exam -Guide exam


 CPA Ethics Exam – study guide




Question 1:

1. An interpretation or ethics ruling usually becomes effective:

A. The first day of the following month after publication
B. Two weeks after publication in The CPA Letter
C. The last day of the month it is published in the Journal of Accountancy
D. Immediately upon publication

Answer: C. The last day of the month it is published in the Journal of Accountancy
Rationale: Ethics interpretations and rulings typically take effect at the end of the month they
are published.



2. A CPA in public practice __________ avoid operating under a code of professional ethics by
not joining the AICPA or a state CPA society.

A. May
B. May not
C. Can temporarily
D. Can with approval

Answer: B. May not
Rationale: All CPAs are bound by ethical standards through state boards, regardless of
membership status.



3. The accounting profession’s public includes:

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A. Governmental agencies only
B. Investors only
C. Credit grantors only
D. All of the above

Answer: D. All of the above
Rationale: The “public” includes all users of CPA services—government, investors, and
creditors.



4. Which category contains ethical standards that can lead to disciplinary action if violated?

A. Ethics Rulings
B. Interpretations of the Rules
C. Rules
D. Guidelines

Answer: C. Rules
Rationale: Only violations of the Rules themselves can result in disciplinary action.



5. The Trial Board may do all of the following EXCEPT:

A. Suspend a member
B. Expel a member
C. Admonish a member
D. Suspend the member’s CPA certificate

Answer: D. Suspend the member’s CPA certificate
Rationale: The Trial Board can discipline membership status but does not control CPA
licenses—that is handled by state boards.

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Question 2:
Which of the following requires that any changes in them be approved by the members of the
AICPA?
a. Rules and interpretations of the rules
b. Principles and rules

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c. Principles, rules, and interpretations of the rules

Answer: b. Principles and rules

Rationale: Principles and Rules must be approved by AICPA members. Interpretations are
issued by the Professional Ethics Executive Committee and do not require member approval,
making options (a) and (c) incorrect.



Question 3:
The results of a guilty finding by a Trial Board will be:
a. Published by the AICPA, but the member's name will not be disclosed
b. Published by the AICPA, and the member's name will be disclosed if the Trial Board votes to
do so
c. Published by the AICPA with the member's name given

Answer: c. Published by the AICPA with the member's name given

Rationale: Trial Board convictions must be published with the member's name disclosed. The
Trial Board does not have discretion over disclosure, so options (a) and (b) are incorrect.



Question 4:
Compliance with the AICPA Code of Professional Conduct depends primarily on: a.
Public opinion and reinforcement by peers
b. Disciplinary proceedings when the code is violated
c. Member's understanding of the code and voluntary compliance

Answer: c. Member's understanding of the code and voluntary compliance

Rationale: Compliance depends on a member’s understanding and voluntary adherence. Peer
reinforcement (a) and disciplinary action (b) are secondary or final measures, not the primary
method.




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Question 5:
The Principles state that a member has responsibility to: a.
Colleagues
b. Clients
c. The public
d. All of the above

Answer: d. All of the above

Rationale: The Preamble to the Articles specifies that members have responsibilities to
colleagues, clients, and the public. Options (a), (b), and (c) are only partial.



Question 6:
The Principles in the AICPA Code of Professional Conduct ___________________ enforceable
under their own terms. a. Are
b. Are not

Answer: b. Are not

Rationale: Principles are goal-oriented and not enforceable on their own. Rules of ethics are
adopted to operate within the framework of these principles. Option (a) is incorrect because
enforcement is tied to the rules, not the principles themselves.




Question 1:
A distinguishing mark of a profession is:
a. Acceptance of its responsibility to the public
b. The esteem with which it is held by the public
c. Its ability to influence legislation

Answer: a. Acceptance of its responsibility to the public

Rationale: According to Article II, the defining characteristic of a profession is its acceptance of
responsibility to the public. While public esteem (b) may follow, and influencing legislation (c)
can be important, these are not the distinguishing mark.