CPA Ethics Exam Latest 2025/2026 Test Bank| Complete 200 Accurate
Exam Questions and Correct Detailed Answers (Verified) Graded A+
1. Which category contains the (c) is the conect answer. Code of Profes-
ethical standards, a sional
violation of which makes a Conduct, Strncture, says that infraction of
member liable to disciplinary any of the rules makes a member liable to
action? disciplinary action.
(a) Ethics Rulings. (a) is wrong since members who depart
(b) Interpretations of the from the
Rules. guidance in ethical rulings in similar circum-
(c) Rules. stances
will be asked to justify such departure. They
cannot
however be charged with violating a ruling.
(b) is also wrong since a member cannot be
charged with violating an interpretation. In a
disciplina1y
hearing where the member was charged
with
violating a rnle, the member would have
the burden of justifying any departure from
interpretations ofthat rule.
2. The Trial Board may, after a (b) is the correct answer. Code of Profes-
hearing, do two of the sional
three things listed below. Mark Conduct, Enforcement, says a Trial Board
the one that the Trial may
Board cannot do. admonish, suspend or expel a member. The
(a) Suspend a member. Trial
(b) Suspend the member's Board has no jurisdiction over a member's
CPA certificate. CPA
( c) Expel a member. certificate.
3. Which of the following re- (b) is correct. Code of Professional Con-
quires that any changes in duct,
them be approved by the Structure, says that Principles and Rules
members of the AICPA? must be
(a) Rules and interpretations approved by the AI CPA members.
of the rules. (a) is wrong and ...
(b) Principles and rules. ( c) is wrong since interpretations are pre-
pared and issued by the Professional Ethics
, CPA Ethics Exam Latest 2025/2026 Test Bank
(c) Principles, rules and inter- Executive Committee without obtaining ap-
pretations of the rules. proval by the members.
4. The results of a guilty finding (c) is correct. Code of Professional Con-
by a Trial Board will duct,
be: Enforcement says that Trial Board convic-
(a) published by the AICPA, tions must
but the member 's name will be published with the member's name dis-
not be disclosed. closed.
(b) published by the AICPA. (a) is then wrong since the name must be
and the member 's name will disclosed.
be disclosed if the Trial Board (b) is also wrong since the Trial Board does
votes to do not have the option of deciding whether or
so. not the member's name will be disclosed.
(c) published by the AICPA
with the member 's
name given.
5. An interpretation or ethics rul- (c) is corect. Code of Professional Conduct,
ing usually becomes Structure, says that interpretations and rul-
effective: ings are
(a) the first day of the month normally effective the last day of the month
following the they are published in the Journal of Accoun-
month it is published in the tancy.
Journal of Accountancy. (a) and (b) are therefore wrong.
(b) two weeks after it is pub-
lished in The CPA
Letter.
(c) the last day of the month in
which it is
published in the Journal of
Accountancy.
6. A CPA in public practice (b) is correct. Code of Professional Con-
______________ avoid operat- duct, Coverage, says that no CPA practicing
ing public accounting may avoid operating un-
under a code of professional der a code of ethics. The CPA may not join
ethics by choosing not the AI CPA or his or her state CPA society
to join either the AICPA or any and therefore would not be subject to their
, CPA Ethics Exam Latest 2025/2026 Test Bank
state CPA society. codes of ethics. The CPA, however, cannot
(a) may avoid being subject to his or her state board
(b) may not of accountancy's code of ethics
7. The accounting profession 's (d) is the correct answer. As (see Article II)
public includes the
(a) Governmental agencies. CPA's public includes everyone that relies
(b) Credit grantors. on them. This then would include
(c) Investors. (a) governmental agencies,
(d) All of the above (b) credit grantors and
(c) investors.
8. Compliance with the AICPA (c) is the correct answer. Composition, Ap-
Code of Professional plicability
Conduct depends primarily and Compliance in the Articles says that
on: compliance with the code, as with all stan-
(a) Public opinion and rein- dards in an open society, depends primarily
forcement of one's attestation on member 's understanding of the code
peers. and voluntary compliance with it.
(b) Disciplinary proceedings (a) is wrong. This section says that rein-
when the code is forcement by one's peers and public opin-
violated. ion is secondary
(c) Member's understanding in obtaining compliance with the code.
the code and voluntary com- (b) is also wrong since this section says
pliance with it. disciplinary proceedings against those that
violate the code are the ultimate or final
method of obtaining compliance.
9. The Principles state that a (d) is correct. The Preamble to the Articles
member has responsibility says that members have
to: (a) a responsibility to colleagues,
(a) Colleagues. (b) to clients and
(b) Clients. (c) to the public.
(c) The public.
(d) All of the above.
10. The Principles in the AICPA (b) is correct. Principles are not enforceable
Code of Professional under
Conduct their own terms as shown in the section
___________________ Purpose. Principles are goal-oriented and
, CPA Ethics Exam Latest 2025/2026 Test Bank
enforceable under their own the rules of
terms. ethics are made and adopted within that
(a) are. framework.
(b) are not.
11. A distinguishing mark of a (a) is correct. As stated in Article II, the
profession is: distinguishing mark of a profession is ac-
(a) Acceptance of its respon- ceptance of its responsibility to the public.
sibility to the public. (b) The esteem by which it is held by the
(b) The esteem with which it is public
held by the public. will come when it shows its responsibility to
(c) Its ability to influence leg- the public.
islation. (c) Influencing legislation may be important
to the profession but it is not the distinguish-
ing
mark of a profession.
12. The AICPA Code of Profes- (b) is correct. The Code of Professional
sional Conduct provides Conduct
guidance and rules for: provides rules for all members, As stated in
(a) Only members in public the Articles, section Composition, the mem-
practice. bership
(b) All members. adopted the code to provide guidance and
(c) Only members engaged in rules for all members-those in public prac-
rendering attestation tice, in
services. industry, in government and in education.
13. Due care requires a member (b) is correct. Article V requires a member
to: to per-form his professional work with com-
(a) Perform work for clients at petence and diligence.
the lowest cost. (a) The Principles do not address the sub-
(b) Perform work for the ject of fees or
clients with competence (c) Continuing Professional Education.
and diligence.
(c) Complete each year a
specified number of
hours of Continuing Profes-
sional Education
courses.
Exam Questions and Correct Detailed Answers (Verified) Graded A+
1. Which category contains the (c) is the conect answer. Code of Profes-
ethical standards, a sional
violation of which makes a Conduct, Strncture, says that infraction of
member liable to disciplinary any of the rules makes a member liable to
action? disciplinary action.
(a) Ethics Rulings. (a) is wrong since members who depart
(b) Interpretations of the from the
Rules. guidance in ethical rulings in similar circum-
(c) Rules. stances
will be asked to justify such departure. They
cannot
however be charged with violating a ruling.
(b) is also wrong since a member cannot be
charged with violating an interpretation. In a
disciplina1y
hearing where the member was charged
with
violating a rnle, the member would have
the burden of justifying any departure from
interpretations ofthat rule.
2. The Trial Board may, after a (b) is the correct answer. Code of Profes-
hearing, do two of the sional
three things listed below. Mark Conduct, Enforcement, says a Trial Board
the one that the Trial may
Board cannot do. admonish, suspend or expel a member. The
(a) Suspend a member. Trial
(b) Suspend the member's Board has no jurisdiction over a member's
CPA certificate. CPA
( c) Expel a member. certificate.
3. Which of the following re- (b) is correct. Code of Professional Con-
quires that any changes in duct,
them be approved by the Structure, says that Principles and Rules
members of the AICPA? must be
(a) Rules and interpretations approved by the AI CPA members.
of the rules. (a) is wrong and ...
(b) Principles and rules. ( c) is wrong since interpretations are pre-
pared and issued by the Professional Ethics
, CPA Ethics Exam Latest 2025/2026 Test Bank
(c) Principles, rules and inter- Executive Committee without obtaining ap-
pretations of the rules. proval by the members.
4. The results of a guilty finding (c) is correct. Code of Professional Con-
by a Trial Board will duct,
be: Enforcement says that Trial Board convic-
(a) published by the AICPA, tions must
but the member 's name will be published with the member's name dis-
not be disclosed. closed.
(b) published by the AICPA. (a) is then wrong since the name must be
and the member 's name will disclosed.
be disclosed if the Trial Board (b) is also wrong since the Trial Board does
votes to do not have the option of deciding whether or
so. not the member's name will be disclosed.
(c) published by the AICPA
with the member 's
name given.
5. An interpretation or ethics rul- (c) is corect. Code of Professional Conduct,
ing usually becomes Structure, says that interpretations and rul-
effective: ings are
(a) the first day of the month normally effective the last day of the month
following the they are published in the Journal of Accoun-
month it is published in the tancy.
Journal of Accountancy. (a) and (b) are therefore wrong.
(b) two weeks after it is pub-
lished in The CPA
Letter.
(c) the last day of the month in
which it is
published in the Journal of
Accountancy.
6. A CPA in public practice (b) is correct. Code of Professional Con-
______________ avoid operat- duct, Coverage, says that no CPA practicing
ing public accounting may avoid operating un-
under a code of professional der a code of ethics. The CPA may not join
ethics by choosing not the AI CPA or his or her state CPA society
to join either the AICPA or any and therefore would not be subject to their
, CPA Ethics Exam Latest 2025/2026 Test Bank
state CPA society. codes of ethics. The CPA, however, cannot
(a) may avoid being subject to his or her state board
(b) may not of accountancy's code of ethics
7. The accounting profession 's (d) is the correct answer. As (see Article II)
public includes the
(a) Governmental agencies. CPA's public includes everyone that relies
(b) Credit grantors. on them. This then would include
(c) Investors. (a) governmental agencies,
(d) All of the above (b) credit grantors and
(c) investors.
8. Compliance with the AICPA (c) is the correct answer. Composition, Ap-
Code of Professional plicability
Conduct depends primarily and Compliance in the Articles says that
on: compliance with the code, as with all stan-
(a) Public opinion and rein- dards in an open society, depends primarily
forcement of one's attestation on member 's understanding of the code
peers. and voluntary compliance with it.
(b) Disciplinary proceedings (a) is wrong. This section says that rein-
when the code is forcement by one's peers and public opin-
violated. ion is secondary
(c) Member's understanding in obtaining compliance with the code.
the code and voluntary com- (b) is also wrong since this section says
pliance with it. disciplinary proceedings against those that
violate the code are the ultimate or final
method of obtaining compliance.
9. The Principles state that a (d) is correct. The Preamble to the Articles
member has responsibility says that members have
to: (a) a responsibility to colleagues,
(a) Colleagues. (b) to clients and
(b) Clients. (c) to the public.
(c) The public.
(d) All of the above.
10. The Principles in the AICPA (b) is correct. Principles are not enforceable
Code of Professional under
Conduct their own terms as shown in the section
___________________ Purpose. Principles are goal-oriented and
, CPA Ethics Exam Latest 2025/2026 Test Bank
enforceable under their own the rules of
terms. ethics are made and adopted within that
(a) are. framework.
(b) are not.
11. A distinguishing mark of a (a) is correct. As stated in Article II, the
profession is: distinguishing mark of a profession is ac-
(a) Acceptance of its respon- ceptance of its responsibility to the public.
sibility to the public. (b) The esteem by which it is held by the
(b) The esteem with which it is public
held by the public. will come when it shows its responsibility to
(c) Its ability to influence leg- the public.
islation. (c) Influencing legislation may be important
to the profession but it is not the distinguish-
ing
mark of a profession.
12. The AICPA Code of Profes- (b) is correct. The Code of Professional
sional Conduct provides Conduct
guidance and rules for: provides rules for all members, As stated in
(a) Only members in public the Articles, section Composition, the mem-
practice. bership
(b) All members. adopted the code to provide guidance and
(c) Only members engaged in rules for all members-those in public prac-
rendering attestation tice, in
services. industry, in government and in education.
13. Due care requires a member (b) is correct. Article V requires a member
to: to per-form his professional work with com-
(a) Perform work for clients at petence and diligence.
the lowest cost. (a) The Principles do not address the sub-
(b) Perform work for the ject of fees or
clients with competence (c) Continuing Professional Education.
and diligence.
(c) Complete each year a
specified number of
hours of Continuing Profes-
sional Education
courses.
