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Ethics for Accountants - D550 (Quizzes)
Questions and Correct Answers
Jane finds a material misstatement while auditing a client's
accounts receivables. Her senior tells her to ignore the
misstatement so that the client does not get upset. Jane wants to
be viewed as a team player in order to advance in the firm, so Jane
follows her senior's instructions and ignores the misstatement.
Which ethical theory did Jane use to make her decision? Ans:
egoism
Ethical relativism can best be described as Ans: a point of view
that morality is relative to the norms of one's culture.
The Public Interest Principle in the AICPA Code of Professional
Conduct recognizes Ans: the importance of integrity in decision
making.
Objectivity requires that a CPA should Ans: maintain a mental
attitude of intellectual honesty and impartiality.
The Independence Principle in the AICPA Code applies to Ans: all
CPAs who render attestation services.
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A CPA would violate the Due Care Principle if he/she Ans:
undertook a professional engagement without having the requisite
background, knowledge, and experience.
Under the IMA's standards of ethical practice, an accounting
professional can consider informing authorities or individuals not
employed by the organization when an ethical dilemma occurs
about an accounting or financial reporting matter that remains
unresolved if he/she Ans: believes there is a clear violation of the
law.
Kelly is the controller of a small company. One day the CFO comes
in and tells her to lower the estimate of uncollectible accounts
receivable. Kelly insists her numbers are correct as is. The CFO
tells her it will mean her job at the company if she doesn't go
along with the smaller estimate. The primary virtue that would
enable Kelly to resist the pressure to manipulate the number is
Ans: integrity.
The most important duty of public accounting is to the Ans:
investing public.
Bob is being pressured by his superior to go along with improper
accounting and told he is expected to be a team player. Which of
the following statements best characterizes those expectations?
Ans: loyalty
© 2025 All rights reserved
Ethics for Accountants - D550 (Quizzes)
Questions and Correct Answers
Jane finds a material misstatement while auditing a client's
accounts receivables. Her senior tells her to ignore the
misstatement so that the client does not get upset. Jane wants to
be viewed as a team player in order to advance in the firm, so Jane
follows her senior's instructions and ignores the misstatement.
Which ethical theory did Jane use to make her decision? Ans:
egoism
Ethical relativism can best be described as Ans: a point of view
that morality is relative to the norms of one's culture.
The Public Interest Principle in the AICPA Code of Professional
Conduct recognizes Ans: the importance of integrity in decision
making.
Objectivity requires that a CPA should Ans: maintain a mental
attitude of intellectual honesty and impartiality.
The Independence Principle in the AICPA Code applies to Ans: all
CPAs who render attestation services.
© 2025 All rights reserved
, 2 | Page
A CPA would violate the Due Care Principle if he/she Ans:
undertook a professional engagement without having the requisite
background, knowledge, and experience.
Under the IMA's standards of ethical practice, an accounting
professional can consider informing authorities or individuals not
employed by the organization when an ethical dilemma occurs
about an accounting or financial reporting matter that remains
unresolved if he/she Ans: believes there is a clear violation of the
law.
Kelly is the controller of a small company. One day the CFO comes
in and tells her to lower the estimate of uncollectible accounts
receivable. Kelly insists her numbers are correct as is. The CFO
tells her it will mean her job at the company if she doesn't go
along with the smaller estimate. The primary virtue that would
enable Kelly to resist the pressure to manipulate the number is
Ans: integrity.
The most important duty of public accounting is to the Ans:
investing public.
Bob is being pressured by his superior to go along with improper
accounting and told he is expected to be a team player. Which of
the following statements best characterizes those expectations?
Ans: loyalty
© 2025 All rights reserved
