CPA Ethics Exam Test Bank | Questions with Verified Answers & Detailed Rationale | 100% Correct| Latest 2025/2026 Update.

CPA Ethics Exam Test Bank | Questions with
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Verified Answers & Detailed Rationale | 100% i,- i,- i,- i,- i,- i,- i,-




Correct| Latest 2025/2026 Update. i,- i,- i,-




A CPA in public practice ______________ avoid operating
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under a code of professional ethics by choosing not
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to join either the AICPA or any state CPA society.
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(a) may i,-




(b) may not
i,- (b) is correct. Code of Professional Conduct,
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Coverage, says that no CPA practicing public accounting may
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avoid operating under a code of ethics. The CPA may not join the
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AI CPA or his or her state CPA society and therefore would not be
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subject to their codes of ethics. The CPA, however, cannot avoid
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being subject to his or her state board of accountancy's code of
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ethics


The accounting profession 's public includes
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(a) Governmental agencies.
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(b) Credit grantors.
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(c) Investors.
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(d) All of the above
i,- i,- i,- i,- i,-i,- i,- (d) is the correct answer. As (see Article II)
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the

,CPA's public includes everyone that relies on them. This then
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would include i,-




(a) governmental agencies,
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(b) credit grantors and
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(c) investors.
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Compliance with the AICPA Code of Professional i,- i,- i,- i,- i,- i,-




Conduct depends primarily on: i,- i,- i,-




(a) Public opinion and reinforcement of one's attestation peers.
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(b) Disciplinary proceedings when the code is
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violated.
(c) Member's understanding the code and voluntary compliance
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with it. (c) is the correct answer. Composition, Applicability
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and Compliance in the Articles says that compliance with the
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code, as with all standards in an open society, depends primarily
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on member 's understanding of the code and voluntary
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compliance with it. i,- i,-




(a) is wrong. This section says that reinforcement by one's peers
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and public opinion is secondary
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in obtaining compliance with the code.
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(b) is also wrong since this section says disciplinary proceedings
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against those that violate the code are the ultimate or final
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method of obtaining compliance. i,- i,- i,-

,The Principles state that a member has responsibility
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to:
(a) Colleagues.
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(b) Clients.
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(c) The public.
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(d) All of the above.
i,- (d) is correct. The Preamble to the
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Articles says that members have i,- i,- i,- i,-




(a) a responsibility to colleagues,
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(b) to clients and
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(c) to the public.
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Which category contains the ethical standards, a
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violation of which makes a member liable to disciplinary
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action?
(a) Ethics Rulings.
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(b) Interpretations of the Rules.
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(c) Rules.
i,- i,-i,- i,- (c) is the conect answer. Code of Professional
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Conduct, Strncture, says that infraction of any of the rules makes
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a member liable to disciplinary action.
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(a) is wrong since members who depart from the
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, guidance in ethical rulings in similar circumstances
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will be asked to justify such departure. They cannot
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however be charged with violating a ruling.
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(b) is also wrong since a member cannot be
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charged with violating an interpretation. In a disciplina1y
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hearing where the member was charged with
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violating a rnle, the member would have the burden of justifying
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any departure from interpretations ofthat rule.
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The Trial Board may, after a hearing, do two of the
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three things listed below. Mark the one that the Trial
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Board cannot do. i,- i,-




(a) Suspend a member.
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(b) Suspend the member's CPA certificate.
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( c) Expel a member.
i,- i,- i,- i,- i,-i,- i,- (b) is the correct answer. Code of
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Professional
Conduct, Enforcement, says a Trial Board may i,- i,- i,- i,- i,- i,-




admonish, suspend or expel a member. The Trial i,- i,- i,- i,- i,- i,- i,-




Board has no jurisdiction over a member's CPA
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certificate.