AICPA Ethics Rules & CPA Exam Latest Update
2025-2026 Actual Exam 200 Questions with 100%
Verified Correct Answers Guaranteed A+ Verified
by Professor
A basic objective of a CPA firm is to provide professional services that conform with
professional standards. Reasonable assurance of achieving this basic objective is
provided through:
A. Compliance with generally accepted reporting standards.
B. A system of quality control.
C. A system of peer review.
D. Continuing professional education. - CORRECT ANSWER: B
A CPA in public practice ______ avoid operating under a code of professional ethics by
choosing not to join either the AICPA or any state CPA society.
A. may
B. may not
C. can
D. probably - CORRECT ANSWER: B
A member of the AICPA must:
a. Undertake only those professional services that the member or member's firm can
reasonably expect to be completed with professional competence.
b. Exercise due professional care in the performance of professional services.
c. Adequately plan and supervise the performance of professional services.
d. All of the above. - CORRECT ANSWER: D
,According to the AICPA Code of Professional Conduct, Rule 101-Independence, an
audit requires that an individual perform his or her services with integrity and objectivity.
There must be reasonable assurance that this is being done during the Page 4 of 5
engagement. What must an accountant do to be in compliance with the generally
accepted auditing standards?
a. Be independent in fact.
b. Be independent in appearance.
c. Both.
d. Neither - CORRECT ANSWER: C
AICPA members should act in a way that will:
a. Serve the public interest
b. Honor the public trust
c. Demonstrate commitment to professionalism
d. All of the above
e. None of the above. - CORRECT ANSWER: D
Regarding the fees of registered independent accounting firms on a audit engagement
the following is true:
A. The firm may charge a client a commission based on recovery received due to
finding an issue on the financials.
B. The firm may charge a flat fee for all work.
C. The firm may charge a fee based on the number of errors it find in the clients
financials.
D. The firm can receive commissions from third parties for work performed on a client. -
CORRECT ANSWER: B
T/F: According to AICPA Code of Professional Conduct, a CPA may receive a contingent
fee for performing an audit of a financial statement? - CORRECT ANSWER: False
,T/F: The enforcement division of TSBPA may take legal action against a CPA that fails
to follow the Board's rules. - CORRECT ANSWER: True
T/F: You'll have 24 months to pass all four CPA Exam sections with a minimum score of
70. Is it true or false? - CORRECT ANSWER: False, 18 months with scores of 75+
To whom does the AICPA Code of Professional Conduct apply:
a. Members in Public practice
b. Members in Industry
c. Members in Government
d. Members in Education
e. All of the above - CORRECT ANSWER: E
Under the newly adopted licensure model starting in 2024, a candidate that successfully
passes all 4 parts of the CPA exam will have a designation indicating a specialization in
which of the following:
A. Tax Compliance and Planning
B. Business Reporting and Analysis
C. Information Systems and Controls
D. No designation indicating a specialization - CORRECT ANSWER: D
What are AICPA's principles for ethical conduct? - CORRECT ANSWER: Integrity
Objectivity
Professional Competence and Due Care
Confidentiality, and
Professional Behavior.
, What does JEEP stand for, and what is the purpose? - CORRECT ANSWER: Joint
Ethics Enforcement Program.
It is an agreement between the AICPA and a state society to permit a single
investigation of a joint member to enforce their respective codes.
What established accounting principles must be followed and are enforceable under the
Code of Professional Conduct as designated by the AICPA?
A. Generally Accepted Accounting Principles (GAAP)
B. Financial Reporting Framework for Small- and Medium-Sized Entities (FRF)
C. International Accounting Standards (IAS)
D. International Financial Reporting Standards (IFRS) - CORRECT ANSWER: A
What is a positive way to maintain a quality relationship with a client?
a. Have written fee agreements, with clearly defined terms (i.e. billing) and, if needed,
provide cost estimates.
b. Complete work at agreed upon deadlines.
c. Use appropriate phone protocol to maintain confidentiality with clients.
d. Monitor quality of all work, including drafts as well as client status reports.
e. All of the above. - CORRECT ANSWER: E
What is NOT a positive way to maintain a quality relationship with a client?
a. Have written fee agreements, with clearly defined terms (i.e. billing) and, ifneeded,
provide cost estimates.
b. Complete work past agreed upon deadlines.
c. Use appropriate phone protocol to maintain confidentiality with clients.
2025-2026 Actual Exam 200 Questions with 100%
Verified Correct Answers Guaranteed A+ Verified
by Professor
A basic objective of a CPA firm is to provide professional services that conform with
professional standards. Reasonable assurance of achieving this basic objective is
provided through:
A. Compliance with generally accepted reporting standards.
B. A system of quality control.
C. A system of peer review.
D. Continuing professional education. - CORRECT ANSWER: B
A CPA in public practice ______ avoid operating under a code of professional ethics by
choosing not to join either the AICPA or any state CPA society.
A. may
B. may not
C. can
D. probably - CORRECT ANSWER: B
A member of the AICPA must:
a. Undertake only those professional services that the member or member's firm can
reasonably expect to be completed with professional competence.
b. Exercise due professional care in the performance of professional services.
c. Adequately plan and supervise the performance of professional services.
d. All of the above. - CORRECT ANSWER: D
,According to the AICPA Code of Professional Conduct, Rule 101-Independence, an
audit requires that an individual perform his or her services with integrity and objectivity.
There must be reasonable assurance that this is being done during the Page 4 of 5
engagement. What must an accountant do to be in compliance with the generally
accepted auditing standards?
a. Be independent in fact.
b. Be independent in appearance.
c. Both.
d. Neither - CORRECT ANSWER: C
AICPA members should act in a way that will:
a. Serve the public interest
b. Honor the public trust
c. Demonstrate commitment to professionalism
d. All of the above
e. None of the above. - CORRECT ANSWER: D
Regarding the fees of registered independent accounting firms on a audit engagement
the following is true:
A. The firm may charge a client a commission based on recovery received due to
finding an issue on the financials.
B. The firm may charge a flat fee for all work.
C. The firm may charge a fee based on the number of errors it find in the clients
financials.
D. The firm can receive commissions from third parties for work performed on a client. -
CORRECT ANSWER: B
T/F: According to AICPA Code of Professional Conduct, a CPA may receive a contingent
fee for performing an audit of a financial statement? - CORRECT ANSWER: False
,T/F: The enforcement division of TSBPA may take legal action against a CPA that fails
to follow the Board's rules. - CORRECT ANSWER: True
T/F: You'll have 24 months to pass all four CPA Exam sections with a minimum score of
70. Is it true or false? - CORRECT ANSWER: False, 18 months with scores of 75+
To whom does the AICPA Code of Professional Conduct apply:
a. Members in Public practice
b. Members in Industry
c. Members in Government
d. Members in Education
e. All of the above - CORRECT ANSWER: E
Under the newly adopted licensure model starting in 2024, a candidate that successfully
passes all 4 parts of the CPA exam will have a designation indicating a specialization in
which of the following:
A. Tax Compliance and Planning
B. Business Reporting and Analysis
C. Information Systems and Controls
D. No designation indicating a specialization - CORRECT ANSWER: D
What are AICPA's principles for ethical conduct? - CORRECT ANSWER: Integrity
Objectivity
Professional Competence and Due Care
Confidentiality, and
Professional Behavior.
, What does JEEP stand for, and what is the purpose? - CORRECT ANSWER: Joint
Ethics Enforcement Program.
It is an agreement between the AICPA and a state society to permit a single
investigation of a joint member to enforce their respective codes.
What established accounting principles must be followed and are enforceable under the
Code of Professional Conduct as designated by the AICPA?
A. Generally Accepted Accounting Principles (GAAP)
B. Financial Reporting Framework for Small- and Medium-Sized Entities (FRF)
C. International Accounting Standards (IAS)
D. International Financial Reporting Standards (IFRS) - CORRECT ANSWER: A
What is a positive way to maintain a quality relationship with a client?
a. Have written fee agreements, with clearly defined terms (i.e. billing) and, if needed,
provide cost estimates.
b. Complete work at agreed upon deadlines.
c. Use appropriate phone protocol to maintain confidentiality with clients.
d. Monitor quality of all work, including drafts as well as client status reports.
e. All of the above. - CORRECT ANSWER: E
What is NOT a positive way to maintain a quality relationship with a client?
a. Have written fee agreements, with clearly defined terms (i.e. billing) and, ifneeded,
provide cost estimates.
b. Complete work past agreed upon deadlines.
c. Use appropriate phone protocol to maintain confidentiality with clients.
