CPA ETHICS EXAM NEWEST 2025 ACTUAL EXAM
|COMPLETE 200 EXAM QUESTIONS AND DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS)
ALREADY GRADED A+
The Principles state that a member has responsibility to:
(a) Colleagues.
(b) Clients.
(c) The public.
(d) All of the above. - Correct Answer - (d) is correct. The Preamble to the Articles says
that members have
(a) a responsibility to colleagues,
(b) to clients and
(c) to the public.
The Principles in the AICPA Code of Professional Conduct ___________________
enforceable under their own terms.
(a) are.
(b) are not. - Correct Answer - (b) is correct. Principles are not enforceable under
their own terms as shown in the section Purpose. Principles are goal-oriented and the
rules of
ethics are made and adopted within that framework.
pg. 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. - Correct Answer - (a) is correct. As stated in Article
II, the distinguishing mark of a profession is acceptance of its responsibility to the public.
(b) The esteem by which it is held by the public
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 guidance and rules for:
(a) Only members in public practice.
(b) All members.
(c) Only members engaged in rendering attestation
services. - Correct Answer - (b) is correct. The Code of Professional Conduct provides
rules for all members, As stated in the Articles, section Composition, the membership
adopted the code to provide guidance and rules for all members-those in public
practice, in industry, in government and in education.
Due care requires a member to:
(a) Perform work for clients at the lowest cost.
(b) Perform work for the clients with competence and diligence.
(c) Complete each year a specified number of hours of Continuing Professional
Education
courses. - Correct Answer - (b) is correct. Article V requires a member to per-form his
professional work with competence and diligence.
(a) The Principles do not address the subject of fees or
pg. 2
,(c) Continuing Professional Education.
The AICPA Rules of the Code of Professional Conduct apply to which group?
(a) All AICPA members.
(b) All CPAs who are licensed to practice.
(c) All CPAs - Correct Answer - (a) is correct. (Applicability) section says that the rules
apply to all AI CPA members.
(b) is wrong because CPAs licensed to practice who do not belong to the AI CPA are not
subject to AICPA rules.
(c) is also wrong because those CPAs not belonging to the AICPA are not subject to
AICPA rules.
The Code of Professional Conduct says that with respect to the acts of others:
(a) a member may be held responsible for compliance with the rule by all persons
associated with him in the practice of public accounting who the member has the
authority or capacity to control.
(b) a member has no responsibility for the acts of anyone but himself.
(c) it is silent on the matter. - Correct Answer - (a) is correct. (Interpretation addressing
the Applicability of the AICPA Code of Professional Conduct) says a member may be
held responsible for the acts of others that he has the authority to control.
A member wishes to take an action but is told that it would be against the rules in the
Code of Professional Conduct. His secretary then offers to take the action saying to the
member, "I will do it sinceI am not a member of the AI CPA and their rules do not apply
to me." The member makes no comment and the secretary does carry out the action.
Has the member violated the Code of Professional Conduct?
(a) Yes.
(b) No. - Correct Answer - (a) is correct. (Interpretation addressing the Applicability of
the AI CPA Code of Professional Conduct) says a member shall not knowingly let a
person whom the member can control do something for the member that if the member
did the same thing would be a violation of the code.
pg. 3
, Which, if any, of the following is not classified as a loan?
(a) letter of credit
(b) guarantee of a loan
(c) line of credit
( d) loan commitment
(e) all are classified as loans - Correct Answer - (e) is correct. (Loan) says that loans
includes
(a) letter of credit,
(b) guarantee of a loan,
(c) line of credit and
(d) loan commitment.
The general counsel for a client __________ considered to have a key position in the
client with respect to financial statements issued by the client.
(a) is
(b) is not - Correct Answer - (a) is correct. (Key position) says that those who
have the ability to exercise influence over the financial statements have a key position
with the entity. It then lists general counsel as one of the positions that have such
influence.
Jones & Barnes, a public accounting firm, has offices in Minneapolis, Chicago and 10
other cities. The firm 's executive office and the managing partner are in Chicago.
Each office does all the work and issues the audit reports 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. - Correct Answer - (b) is correct. (Covered member (d))
includes
pg. 4
|COMPLETE 200 EXAM QUESTIONS AND DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS)
ALREADY GRADED A+
The Principles state that a member has responsibility to:
(a) Colleagues.
(b) Clients.
(c) The public.
(d) All of the above. - Correct Answer - (d) is correct. The Preamble to the Articles says
that members have
(a) a responsibility to colleagues,
(b) to clients and
(c) to the public.
The Principles in the AICPA Code of Professional Conduct ___________________
enforceable under their own terms.
(a) are.
(b) are not. - Correct Answer - (b) is correct. Principles are not enforceable under
their own terms as shown in the section Purpose. Principles are goal-oriented and the
rules of
ethics are made and adopted within that framework.
pg. 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. - Correct Answer - (a) is correct. As stated in Article
II, the distinguishing mark of a profession is acceptance of its responsibility to the public.
(b) The esteem by which it is held by the public
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 guidance and rules for:
(a) Only members in public practice.
(b) All members.
(c) Only members engaged in rendering attestation
services. - Correct Answer - (b) is correct. The Code of Professional Conduct provides
rules for all members, As stated in the Articles, section Composition, the membership
adopted the code to provide guidance and rules for all members-those in public
practice, in industry, in government and in education.
Due care requires a member to:
(a) Perform work for clients at the lowest cost.
(b) Perform work for the clients with competence and diligence.
(c) Complete each year a specified number of hours of Continuing Professional
Education
courses. - Correct Answer - (b) is correct. Article V requires a member to per-form his
professional work with competence and diligence.
(a) The Principles do not address the subject of fees or
pg. 2
,(c) Continuing Professional Education.
The AICPA Rules of the Code of Professional Conduct apply to which group?
(a) All AICPA members.
(b) All CPAs who are licensed to practice.
(c) All CPAs - Correct Answer - (a) is correct. (Applicability) section says that the rules
apply to all AI CPA members.
(b) is wrong because CPAs licensed to practice who do not belong to the AI CPA are not
subject to AICPA rules.
(c) is also wrong because those CPAs not belonging to the AICPA are not subject to
AICPA rules.
The Code of Professional Conduct says that with respect to the acts of others:
(a) a member may be held responsible for compliance with the rule by all persons
associated with him in the practice of public accounting who the member has the
authority or capacity to control.
(b) a member has no responsibility for the acts of anyone but himself.
(c) it is silent on the matter. - Correct Answer - (a) is correct. (Interpretation addressing
the Applicability of the AICPA Code of Professional Conduct) says a member may be
held responsible for the acts of others that he has the authority to control.
A member wishes to take an action but is told that it would be against the rules in the
Code of Professional Conduct. His secretary then offers to take the action saying to the
member, "I will do it sinceI am not a member of the AI CPA and their rules do not apply
to me." The member makes no comment and the secretary does carry out the action.
Has the member violated the Code of Professional Conduct?
(a) Yes.
(b) No. - Correct Answer - (a) is correct. (Interpretation addressing the Applicability of
the AI CPA Code of Professional Conduct) says a member shall not knowingly let a
person whom the member can control do something for the member that if the member
did the same thing would be a violation of the code.
pg. 3
, Which, if any, of the following is not classified as a loan?
(a) letter of credit
(b) guarantee of a loan
(c) line of credit
( d) loan commitment
(e) all are classified as loans - Correct Answer - (e) is correct. (Loan) says that loans
includes
(a) letter of credit,
(b) guarantee of a loan,
(c) line of credit and
(d) loan commitment.
The general counsel for a client __________ considered to have a key position in the
client with respect to financial statements issued by the client.
(a) is
(b) is not - Correct Answer - (a) is correct. (Key position) says that those who
have the ability to exercise influence over the financial statements have a key position
with the entity. It then lists general counsel as one of the positions that have such
influence.
Jones & Barnes, a public accounting firm, has offices in Minneapolis, Chicago and 10
other cities. The firm 's executive office and the managing partner are in Chicago.
Each office does all the work and issues the audit reports 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. - Correct Answer - (b) is correct. (Covered member (d))
includes
pg. 4
