AICPA Ethics Exam Questions and Answers 2025

Ethical Decision Making helps you actively work through gray area and
Model choose the best possible solution to an ethical
dilema

Step 1: Recognize the ethical issue
Step 2: Gather the critical facts
Step 3: Identify the stakeholders
Step 4: Consider your alternatives
Step 5: Consider the effect on stakeholders
Step 6: Consider your comfort level
Step 7: Consider rules, regulations and laws
Step 8: Make a decision
Step 9: Document your efforts
Step 10: Evaluate the outcome



Step 1 Recognize the ethical issue




Step 2 Gather the critical facts

-you may not have all the facts, but you need the
key ones (material)



Step 3 Identify the stakeholders

-who is affected by your decisions/actions
-consider as many as possible



Step 4 Consider your alternatives

-approaches you could take to address this matter
and resolve the ethical conflict



Step 5 Consider the effect on stakeholders

-effect of each alternative

, Step 6 Consider your comfort level

-how comfortable are you with each option
-how would you feel if you have to discuss your
decision in public



Step 7 Consider rules, regulations, and laws

-rules set by AICPA, state accountancy board,
state CPA society



Step 8 Make a decision

-take the time you need
-discuss with colleague, gain perspectives,
counsel, don't be hasty



Step 9 Document your efforts

-your understanding of the facts
-who you consulted with and their professional
affiliations
-your decision



Step 10 Evaluate the outcome

-would you have done anything differently



Professional & set ethics standards and rules for members of the
Regulatory Bodies accounting profession

State CPA licensing boards
AICPA
SEC
PCABO
IFAC
IRS
GAO
DOL
others