AICPA Ethics Code Latest Ethics Exam
Questions with simplified and correct
Answers
Which step in the decision-making model is characterized by asking the question, "Are these opinions
consistent with applicable professional ethics rules, regulations, and laws?"
A. Recognize ethical issues
B. Gather critical facts
C. Consider the effect on stakeholders
D. Consider rules, regulations, and laws - correct answer-D. Consider rules, regulations, and laws
Step 7 asks this question. You may determine that the greatest benefit and least amount of harm would
likely result if you take a particular course of action, but if that course of action is inconsistent with the
profession's rules of conduct, you may not ignore those rules.
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"
A. Recognize ethical issues
B. Consider your comfort level
C. Consider the effect on stake holders
D. Consider rules, regulations, and laws - correct answer-B. Consider your comfort level
Step 6 asks you to consider your comfort level. Before you make a decision about the correct action
when facing an ethical issue, you should ask yourself some questions.
CPAs must follow the rules and standards promulgated by which body?
A. AICPA
B. SEC
C. PCAOB
D. Your state CPA licensing board - correct answer-D. Your state CPA licensing board
State CPA licensing boards are charged with issuing CPA licenses and overseeing the ethical conduct of
CPAs in 55 jurisdictions in the United States. It is critically important for CPAs to know their state board's
requirements. If you are licensed by more than one state board, you should familiarize yourself with
each state's requirements.
As a professional CPA, I have the greatest responsibility to serve:
A. My clients
, B. My best interest
C. The public's interest
D. My superior's interest - correct answer-C. Your primary responsibility is to serve the public interest.
As a professional CPA, I have a responsibility to maintain and broaden public confidence by performing
all my responsibilities with:
A. Integrity
B. Speed
C. Agility
D. Perfection - correct answer-A. Integrity
Integrity is one of the cornerstones of our profession.
I also must maintain my objectivity, be free of conflicts of interest, and discharge all of my responsibilities
with due...
A. Respect
B. Care
C. Diligence
D. Speed - correct answer-B. Care
Due care implies a certain level of quality and competence in the performance of services.
Bob is a CPA who works as as senior accountant in a small but diversified financial services company. Bob
works for the parent company (bank) in a division that makes business loans. His mother has been
offered a seat on the board of directors of a subsidiary company that is an investment advisor.
Does Bob's situation cause a significant threat to Bob's integrity and objectivity (conflict of interest)?
A. No. The bank and investment advisory firm are separate and distinct businesses
B. Yes. Directorships of relatives always result in conflicts of interest
C. Maybe. But more facts should be considered - correct answer-C. Maybe. But more facts should be
considered
We need more information to determine whether this situation creates a significant threat to Bob's
ability to be objective.
Which factor must be in place for you to perform services in light of a potential conflict of interest?
A. The affected parties have agreed to bring the matter to the BOD
B. The affected parties have agreed not to sue you or your firm
C. You have determined that your threats to objectivity are at an acceptable level
Questions with simplified and correct
Answers
Which step in the decision-making model is characterized by asking the question, "Are these opinions
consistent with applicable professional ethics rules, regulations, and laws?"
A. Recognize ethical issues
B. Gather critical facts
C. Consider the effect on stakeholders
D. Consider rules, regulations, and laws - correct answer-D. Consider rules, regulations, and laws
Step 7 asks this question. You may determine that the greatest benefit and least amount of harm would
likely result if you take a particular course of action, but if that course of action is inconsistent with the
profession's rules of conduct, you may not ignore those rules.
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"
A. Recognize ethical issues
B. Consider your comfort level
C. Consider the effect on stake holders
D. Consider rules, regulations, and laws - correct answer-B. Consider your comfort level
Step 6 asks you to consider your comfort level. Before you make a decision about the correct action
when facing an ethical issue, you should ask yourself some questions.
CPAs must follow the rules and standards promulgated by which body?
A. AICPA
B. SEC
C. PCAOB
D. Your state CPA licensing board - correct answer-D. Your state CPA licensing board
State CPA licensing boards are charged with issuing CPA licenses and overseeing the ethical conduct of
CPAs in 55 jurisdictions in the United States. It is critically important for CPAs to know their state board's
requirements. If you are licensed by more than one state board, you should familiarize yourself with
each state's requirements.
As a professional CPA, I have the greatest responsibility to serve:
A. My clients
, B. My best interest
C. The public's interest
D. My superior's interest - correct answer-C. Your primary responsibility is to serve the public interest.
As a professional CPA, I have a responsibility to maintain and broaden public confidence by performing
all my responsibilities with:
A. Integrity
B. Speed
C. Agility
D. Perfection - correct answer-A. Integrity
Integrity is one of the cornerstones of our profession.
I also must maintain my objectivity, be free of conflicts of interest, and discharge all of my responsibilities
with due...
A. Respect
B. Care
C. Diligence
D. Speed - correct answer-B. Care
Due care implies a certain level of quality and competence in the performance of services.
Bob is a CPA who works as as senior accountant in a small but diversified financial services company. Bob
works for the parent company (bank) in a division that makes business loans. His mother has been
offered a seat on the board of directors of a subsidiary company that is an investment advisor.
Does Bob's situation cause a significant threat to Bob's integrity and objectivity (conflict of interest)?
A. No. The bank and investment advisory firm are separate and distinct businesses
B. Yes. Directorships of relatives always result in conflicts of interest
C. Maybe. But more facts should be considered - correct answer-C. Maybe. But more facts should be
considered
We need more information to determine whether this situation creates a significant threat to Bob's
ability to be objective.
Which factor must be in place for you to perform services in light of a potential conflict of interest?
A. The affected parties have agreed to bring the matter to the BOD
B. The affected parties have agreed not to sue you or your firm
C. You have determined that your threats to objectivity are at an acceptable level
