CPA ethics course Questions with
Complete Solutions (Latest 2025)
To address an ethical matter and make good judgments, you
must first be able to recognize issues when they arise. -
Correct Answers ✅This means being familiar with the
profession's body of rules and regulations from the American
Institute of Certified Public Accountants, your local state
accountancy board, which issues your license to practice, and
other sources of regulation. This also means staying attuned
to potential ethical "warning signs."
ethical decision making model - Correct Answers ✅1.
recognize the ethical issue
2. gather the critical facts
3. identify the stakeholders
4. consider your alternatives
5. consider the effect on stakeholders
6. consider your comfort level
7 consider rules, regulations and laws
8. make a decision
,CPA ethics course Questions with
Complete Solutions (Latest 2025)
9. document your effort
10. evaluate the outcome
Which step in the decision-making model is characterized by
asking the question, "Are these options consistent with
applicable professional ethics rules, regulations, and laws?" -
Correct Answers ✅consider rules, regulations and laws.
Step 7 asks this question. You may determine that the
greatest benefit and least amount of harm would likely result
if you take a particular course of action, but if that course of
action is inconsistent with the profession's rules of conduct,
you may not ignore those rules
Which step in the decision-making model is characterized by
asking the question, "If you had to discuss your decision in
public, would you be concerned about how it reflects on your
ethics?" - Correct Answers ✅consider your comfort level
Step 6 asks you to consider your comfort level. Before you
make a decision about the correct action when facing an
ethical issue, you should ask yourself some questions. Click
the forward arrow to continue.
, CPA ethics course Questions with
Complete Solutions (Latest 2025)
GAO - Correct Answers ✅The GAO issues ethics and
independence rules that apply to engagements performed
under generally accepted government auditing standards
(GAGAS). These governmental standards are commonly
referred to as the "Yellow Book." We will discuss these rules
later in this course.
Internal Revenue Service (IRS) - Correct Answers ✅The IRS
is a government agency under the U.S. Department of the
Treasury. The Internal Revenue Code (IRC) authorizes the
Secretary of the Treasury to set rules and regulations
necessary to enforce the U.S. tax laws. Treasury Department
Circular 230 governs federal tax practice before the IRS by
CPAs, enrolled agents, attorneys, and actuaries, and the IRS
Office of Professional Responsibility (OPR) enforces these
regulations. Preparer penalty and confidentiality provisions
appear in the IRC. We will discuss the ethics requirements for
CPAs in tax practice later in this course.
U.S. Department of Labor (DOL) - Correct Answers
✅Auditors of employee benefit plans that file reports with
the DOL should be aware of the DOL interpretive bulletin on
independence. These rules will be addressed later in this
course.
American Institute of Certified Public Accountants - Correct
Answers ✅The American Institute of Certified Public
Accountants is the national professional organization for all
certified public accountants. Its mission is to provide
Complete Solutions (Latest 2025)
To address an ethical matter and make good judgments, you
must first be able to recognize issues when they arise. -
Correct Answers ✅This means being familiar with the
profession's body of rules and regulations from the American
Institute of Certified Public Accountants, your local state
accountancy board, which issues your license to practice, and
other sources of regulation. This also means staying attuned
to potential ethical "warning signs."
ethical decision making model - Correct Answers ✅1.
recognize the ethical issue
2. gather the critical facts
3. identify the stakeholders
4. consider your alternatives
5. consider the effect on stakeholders
6. consider your comfort level
7 consider rules, regulations and laws
8. make a decision
,CPA ethics course Questions with
Complete Solutions (Latest 2025)
9. document your effort
10. evaluate the outcome
Which step in the decision-making model is characterized by
asking the question, "Are these options consistent with
applicable professional ethics rules, regulations, and laws?" -
Correct Answers ✅consider rules, regulations and laws.
Step 7 asks this question. You may determine that the
greatest benefit and least amount of harm would likely result
if you take a particular course of action, but if that course of
action is inconsistent with the profession's rules of conduct,
you may not ignore those rules
Which step in the decision-making model is characterized by
asking the question, "If you had to discuss your decision in
public, would you be concerned about how it reflects on your
ethics?" - Correct Answers ✅consider your comfort level
Step 6 asks you to consider your comfort level. Before you
make a decision about the correct action when facing an
ethical issue, you should ask yourself some questions. Click
the forward arrow to continue.
, CPA ethics course Questions with
Complete Solutions (Latest 2025)
GAO - Correct Answers ✅The GAO issues ethics and
independence rules that apply to engagements performed
under generally accepted government auditing standards
(GAGAS). These governmental standards are commonly
referred to as the "Yellow Book." We will discuss these rules
later in this course.
Internal Revenue Service (IRS) - Correct Answers ✅The IRS
is a government agency under the U.S. Department of the
Treasury. The Internal Revenue Code (IRC) authorizes the
Secretary of the Treasury to set rules and regulations
necessary to enforce the U.S. tax laws. Treasury Department
Circular 230 governs federal tax practice before the IRS by
CPAs, enrolled agents, attorneys, and actuaries, and the IRS
Office of Professional Responsibility (OPR) enforces these
regulations. Preparer penalty and confidentiality provisions
appear in the IRC. We will discuss the ethics requirements for
CPAs in tax practice later in this course.
U.S. Department of Labor (DOL) - Correct Answers
✅Auditors of employee benefit plans that file reports with
the DOL should be aware of the DOL interpretive bulletin on
independence. These rules will be addressed later in this
course.
American Institute of Certified Public Accountants - Correct
Answers ✅The American Institute of Certified Public
Accountants is the national professional organization for all
certified public accountants. Its mission is to provide
