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2026 CPA Ethics Exam 2026(NEW UPDATED VERSION) LATEST ACTUAL EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED QUESTIONS AND ANSWERS)- GUARANTEED PASS A+ UPDATED
1. Which is a fundamental principle in the CPA Code of Professional Conduct?
A. Integrity
B. Profit maximization
C. Client retention at all costs
D. Aggressive tax avoidance
Answer: A
Rationale: Integrity requires honesty, fairness, and truthfulness in all professional relationships.
2. Independence in appearance is required when a CPA:
A. Performs an audit or other attest service
B. Prepares a client’s tax return only
C. Provides consulting services unrelated to attest
D. Works internally for a company without audits
Answer: A
Rationale: Independence, both in fact and appearance, is mandatory for attest services.
3. Confidential client information can be disclosed:
A. Only with client consent or as required by law
B. To business associates
C. To the client’s competitors
D. For marketing purposes
Answer: A
4. A CPA becomes aware of a material misstatement in prior year financial statements
prepared by another CPA. The CPA should:
A. Communicate with the former CPA and client according to professional standards
B. Ignore it
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C. Publicly disclose without consulting the client
D. Adjust it without documentation
Answer: A
5. To avoid conflicts of interest in tax engagements, a CPA should:
A. Obtain client consent when a conflict exists
B. Ignore minor conflicts
C. Share strategies publicly
D. Charge extra fees only
Answer: A
6. Owning stock in an audit client:
A. Violates independence
B. Is always acceptable
C. Is irrelevant
D. Enhances objectivity
Answer: A
7. Which is an example of a safeguard to independence threats?
A. Peer review, consultation, and firm policies
B. Accepting gifts from clients
C. Ignoring client relationships
D. Delegating all work without review
Answer: A
8. A CPA receives a high-value gift from a client. This:
A. May impair independence
B. Is always acceptable
C. Only requires reporting to marketing
D. Must be shared with colleagues
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Answer: A
9. Which principle requires a CPA to perform services competently and diligently?
A. Due care
B. Confidentiality
C. Independence
D. Advocacy
Answer: A
10. A CPA may rely on client-provided oral representations when preparing a tax return
only if:
A. The information is reasonable and supported by documentation
B. The client is well-known
C. The information is casual
D. It is immaterial
Answer: A
11. Threats to independence include all EXCEPT:
A. Following GAAP
B. Financial interest in an attest client
C. Close family relationships with client officers
D. Long-term tenure as auditor
Answer: A
12. A CPA discovers fraud during an audit. The appropriate action is:
A. Communicate to those charged with governance and consider legal obligations
B. Ignore it if immaterial
C. Post online immediately
D. Report internally only
Answer: A
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13. The principle of responsibility requires a CPA to:
A. Exercise professional competence and adhere to ethical standards
B. Maximize fees
C. Avoid complex clients
D. Focus on marketing
Answer: A
14. Signing a misleading audit report violates:
A. Integrity and objectivity
B. Independence only
C. Tax law
D. Documentation rules
Answer: A
15. Contingent fees are prohibited for:
A. Audit and review engagements
B. Tax return preparation
C. Advisory services
D. Internal reviews
Answer: A
16. A CPA must report client noncompliance with law if:
A. It has a material effect on the financial statements
B. Always publicly
C. Only if the client requests
D. Never
Answer: A
practice exam 2026
2026 CPA Ethics Exam 2026(NEW UPDATED VERSION) LATEST ACTUAL EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED QUESTIONS AND ANSWERS)- GUARANTEED PASS A+ UPDATED
1. Which is a fundamental principle in the CPA Code of Professional Conduct?
A. Integrity
B. Profit maximization
C. Client retention at all costs
D. Aggressive tax avoidance
Answer: A
Rationale: Integrity requires honesty, fairness, and truthfulness in all professional relationships.
2. Independence in appearance is required when a CPA:
A. Performs an audit or other attest service
B. Prepares a client’s tax return only
C. Provides consulting services unrelated to attest
D. Works internally for a company without audits
Answer: A
Rationale: Independence, both in fact and appearance, is mandatory for attest services.
3. Confidential client information can be disclosed:
A. Only with client consent or as required by law
B. To business associates
C. To the client’s competitors
D. For marketing purposes
Answer: A
4. A CPA becomes aware of a material misstatement in prior year financial statements
prepared by another CPA. The CPA should:
A. Communicate with the former CPA and client according to professional standards
B. Ignore it
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,2|Page
C. Publicly disclose without consulting the client
D. Adjust it without documentation
Answer: A
5. To avoid conflicts of interest in tax engagements, a CPA should:
A. Obtain client consent when a conflict exists
B. Ignore minor conflicts
C. Share strategies publicly
D. Charge extra fees only
Answer: A
6. Owning stock in an audit client:
A. Violates independence
B. Is always acceptable
C. Is irrelevant
D. Enhances objectivity
Answer: A
7. Which is an example of a safeguard to independence threats?
A. Peer review, consultation, and firm policies
B. Accepting gifts from clients
C. Ignoring client relationships
D. Delegating all work without review
Answer: A
8. A CPA receives a high-value gift from a client. This:
A. May impair independence
B. Is always acceptable
C. Only requires reporting to marketing
D. Must be shared with colleagues
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Answer: A
9. Which principle requires a CPA to perform services competently and diligently?
A. Due care
B. Confidentiality
C. Independence
D. Advocacy
Answer: A
10. A CPA may rely on client-provided oral representations when preparing a tax return
only if:
A. The information is reasonable and supported by documentation
B. The client is well-known
C. The information is casual
D. It is immaterial
Answer: A
11. Threats to independence include all EXCEPT:
A. Following GAAP
B. Financial interest in an attest client
C. Close family relationships with client officers
D. Long-term tenure as auditor
Answer: A
12. A CPA discovers fraud during an audit. The appropriate action is:
A. Communicate to those charged with governance and consider legal obligations
B. Ignore it if immaterial
C. Post online immediately
D. Report internally only
Answer: A
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13. The principle of responsibility requires a CPA to:
A. Exercise professional competence and adhere to ethical standards
B. Maximize fees
C. Avoid complex clients
D. Focus on marketing
Answer: A
14. Signing a misleading audit report violates:
A. Integrity and objectivity
B. Independence only
C. Tax law
D. Documentation rules
Answer: A
15. Contingent fees are prohibited for:
A. Audit and review engagements
B. Tax return preparation
C. Advisory services
D. Internal reviews
Answer: A
16. A CPA must report client noncompliance with law if:
A. It has a material effect on the financial statements
B. Always publicly
C. Only if the client requests
D. Never
Answer: A
practice exam 2026
