1
CPA ETHICS EXAM 2026 WITH RATIONALE
SQUESTIONS WITH CORRECT| 100% RATED
CORRECT !! | 100% SURE PASS
Which category contains the ethical standards, a
violation of which makes a member liable to disciplinary
action?
(a) Ethics Rulings.
(b) Interpretations of the Rules.
(c) Rules. -
-Solution -(c) is the conect answer. Code of Professional
Conduct, Strncture, says that infraction of any of the
rules makes a member liable to disciplinary action.
(a) is wrong since members who depart from the
guidance in ethical rulings in similar circumstances
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.
The Trial Board may, after a hearing, do two of the
three things listed below. Mark the one that the Trial
Board cannot do.
(a) Suspend a member.
(b) Suspend the member's CPA certificate.
( c) Expel a member. -
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-Solution -(b) is the correct answer. Code of
Professional
Conduct, Enforcement, says a Trial Board may
admonish, suspend or expel a member. The Trial
Board has no jurisdiction over a member's CPA
certificate.
Which of the following requires that any changes in
them be approved by the members of the AICPA?
(a) Rules and interpretations of the rules.
(b) Principles and rules.
(c) Principles, rules and interpretations of the rules. -
-Solution -(b) is correct. Code of Professional Conduct,
Structure, says that Principles and Rules must be
approved by the AI CPA members.
(a) is wrong and ...
( c) is wrong since interpretations are prepared and
issued by the Professional Ethics Executive Committee
without obtaining approval by the members.
The results of a guilty finding by a Trial Board will
be:
(a) published by the AICPA, but the member 's name will
not be disclosed.
(b) published by the AICPA. and the member 's name
will be disclosed if the Trial Board votes to do
so.
(c) published by the AICPA with the member 's
name given. -
-Solution -(c) is correct. Code of Professional Conduct,
Enforcement says that Trial Board convictions must
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be published with the member's name disclosed.
(a) is then wrong since the name must be disclosed.
(b) is also wrong since the Trial Board does not have the
option of deciding whether or not the member's name
will be disclosed.
An interpretation or ethics ruling usually becomes
effective:
(a) the first day of the month following the
month it is published in the Journal of Accountancy.
(b) two weeks after it is published in The CPA
Letter.
(c) the last day of the month in which it is
published in the Journal of Accountancy. -
-Solution -(c) is corect. Code of Professional Conduct,
Structure, says that interpretations and rulings are
normally effective the last day of the month they are
published in the Journal of Accountancy.
(a) and (b) are therefore wrong.
A CPA in public practice ______________ avoid
operating
under a code of professional ethics by choosing not
to join either the AICPA or any state CPA society.
(a) may
(b) may not -
-Solution -(b) is correct. Code of Professional Conduct,
Coverage, says that no CPA practicing public accounting
may avoid operating under a code of ethics. The CPA
may not join the AI CPA or his or her state CPA society
and therefore would not be subject to their codes of
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ethics. The CPA, however, cannot avoid being subject to
his or her state board of accountancy's code of ethics
The accounting profession 's public includes
(a) Governmental agencies.
(b) Credit grantors.
(c) Investors.
(d) All of the above -
-Solution -(d) is the correct answer. As (see Article II)
the
CPA's public includes everyone that relies on them. This
then would include
(a) governmental agencies,
(b) credit grantors and
(c) investors.
Compliance with the AICPA Code of Professional
Conduct depends primarily on:
(a) Public opinion and reinforcement of one's attestation
peers.
(b) Disciplinary proceedings when the code is
violated.
(c) Member's understanding the code and voluntary
compliance with it. -
-Solution -(c) is the correct answer. Composition,
Applicability
and Compliance in the Articles says that compliance
with the code, as with all standards in an open society,
depends primarily on member 's understanding of the
code and voluntary compliance with it.
CPA ETHICS EXAM 2026 WITH RATIONALE
SQUESTIONS WITH CORRECT| 100% RATED
CORRECT !! | 100% SURE PASS
Which category contains the ethical standards, a
violation of which makes a member liable to disciplinary
action?
(a) Ethics Rulings.
(b) Interpretations of the Rules.
(c) Rules. -
-Solution -(c) is the conect answer. Code of Professional
Conduct, Strncture, says that infraction of any of the
rules makes a member liable to disciplinary action.
(a) is wrong since members who depart from the
guidance in ethical rulings in similar circumstances
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.
The Trial Board may, after a hearing, do two of the
three things listed below. Mark the one that the Trial
Board cannot do.
(a) Suspend a member.
(b) Suspend the member's CPA certificate.
( c) Expel a member. -
,2
-Solution -(b) is the correct answer. Code of
Professional
Conduct, Enforcement, says a Trial Board may
admonish, suspend or expel a member. The Trial
Board has no jurisdiction over a member's CPA
certificate.
Which of the following requires that any changes in
them be approved by the members of the AICPA?
(a) Rules and interpretations of the rules.
(b) Principles and rules.
(c) Principles, rules and interpretations of the rules. -
-Solution -(b) is correct. Code of Professional Conduct,
Structure, says that Principles and Rules must be
approved by the AI CPA members.
(a) is wrong and ...
( c) is wrong since interpretations are prepared and
issued by the Professional Ethics Executive Committee
without obtaining approval by the members.
The results of a guilty finding by a Trial Board will
be:
(a) published by the AICPA, but the member 's name will
not be disclosed.
(b) published by the AICPA. and the member 's name
will be disclosed if the Trial Board votes to do
so.
(c) published by the AICPA with the member 's
name given. -
-Solution -(c) is correct. Code of Professional Conduct,
Enforcement says that Trial Board convictions must
,3
be published with the member's name disclosed.
(a) is then wrong since the name must be disclosed.
(b) is also wrong since the Trial Board does not have the
option of deciding whether or not the member's name
will be disclosed.
An interpretation or ethics ruling usually becomes
effective:
(a) the first day of the month following the
month it is published in the Journal of Accountancy.
(b) two weeks after it is published in The CPA
Letter.
(c) the last day of the month in which it is
published in the Journal of Accountancy. -
-Solution -(c) is corect. Code of Professional Conduct,
Structure, says that interpretations and rulings are
normally effective the last day of the month they are
published in the Journal of Accountancy.
(a) and (b) are therefore wrong.
A CPA in public practice ______________ avoid
operating
under a code of professional ethics by choosing not
to join either the AICPA or any state CPA society.
(a) may
(b) may not -
-Solution -(b) is correct. Code of Professional Conduct,
Coverage, says that no CPA practicing public accounting
may avoid operating under a code of ethics. The CPA
may not join the AI CPA or his or her state CPA society
and therefore would not be subject to their codes of
, 4
ethics. The CPA, however, cannot avoid being subject to
his or her state board of accountancy's code of ethics
The accounting profession 's public includes
(a) Governmental agencies.
(b) Credit grantors.
(c) Investors.
(d) All of the above -
-Solution -(d) is the correct answer. As (see Article II)
the
CPA's public includes everyone that relies on them. This
then would include
(a) governmental agencies,
(b) credit grantors and
(c) investors.
Compliance with the AICPA Code of Professional
Conduct depends primarily on:
(a) Public opinion and reinforcement of one's attestation
peers.
(b) Disciplinary proceedings when the code is
violated.
(c) Member's understanding the code and voluntary
compliance with it. -
-Solution -(c) is the correct answer. Composition,
Applicability
and Compliance in the Articles says that compliance
with the code, as with all standards in an open society,
depends primarily on member 's understanding of the
code and voluntary compliance with it.
