ETHICS FINAL EXAM PRACTICE TEST BANK
2026 TESTED QUESTIONS WITH ANSWERS
GRADED A+
⩥ Which step in the decision-making model is characterized by asking
the question, "Are these opinions consistent with applicable professional
ethics rules, regulations, and laws?" Answer: Consider rules, regulations,
and laws
⩥ 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?" Answer: Consider
your comfort level
⩥ CPAs must follow the rules and standards promulgated by which
body? Answer: Your state CPA licensing board
⩥ AICPA Answer: National professional organization; provide resources
and information to members and coordinate activities with state CPA
societies; promulgates the AICPA Code of Professional Conduct;
sanctions members for violations
⩥ SEC Answer: Empowered by Congress to regulate financial reporting
by publicly-held companies; establish and enforce rules on accounting
and auditing; enforces rules on auditor independence
,⩥ PCAOB Answer: Created by SOX in 2002; overseen by SEC;
establish rules with respect to auditing and other attestation
engagements, quality control of audits, and independence of public
company auditors
⩥ State Board of Public Accountancy Answer: Issues your CPA license;
frontline of oversight on ethical behavior; CPAs must follow the ethical
rules and standards of the state they are licensed in
⩥ 2014 restructure of the AICPA code Answer: Four sections:
Preface - applies to all AICPA members
Part 1 - rules related to those in public practice
Part 2 - rules and interpretations applicable to those in private practice
Part 3 - rules and interpretations applicable to everyone else
⩥ What are the 6 "pillars" or principles of the code? Answer:
Responsibilities
The public interest
Integrity
Objectivity & independence
Due care
Scope & nature of services
, ⩥ Responsibilities Answer: In carrying out your professional
responsibilities, you should exercise sensitive professional and moral
judgement
⩥ The public interest Answer: You should act in a way that will serve the
public interest, honor the public trust, and demonstrate your commitment
to professionalism
⩥ Integrity Answer: To maintain and broaden public confidence, you
should perform all professional responsibilities with the highest integrity
(being honest even when no one is looking or "above reproach")
⩥ Objectivity & independence Answer: You should maintain objectivity
and be free from conflicts of interest in discharging your professional
duties; this especially applies to public accountants that provide auditing
or other attestation services - being independent in fact and appearance
⩥ Due care Answer: You should observe the profession's technical and
ethical standards, strive continually to improve competence and the
quality of services, and discharge professional responsibility to the best
of your ability; also requires CPAs to exercise professional skepticism
performing audits/attestation services
⩥ Scope & nature of services Answer: As a member in public practice,
you should observe the principles of the AICPA Code in determining the
scope and nature of services to be performed
2026 TESTED QUESTIONS WITH ANSWERS
GRADED A+
⩥ Which step in the decision-making model is characterized by asking
the question, "Are these opinions consistent with applicable professional
ethics rules, regulations, and laws?" Answer: Consider rules, regulations,
and laws
⩥ 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?" Answer: Consider
your comfort level
⩥ CPAs must follow the rules and standards promulgated by which
body? Answer: Your state CPA licensing board
⩥ AICPA Answer: National professional organization; provide resources
and information to members and coordinate activities with state CPA
societies; promulgates the AICPA Code of Professional Conduct;
sanctions members for violations
⩥ SEC Answer: Empowered by Congress to regulate financial reporting
by publicly-held companies; establish and enforce rules on accounting
and auditing; enforces rules on auditor independence
,⩥ PCAOB Answer: Created by SOX in 2002; overseen by SEC;
establish rules with respect to auditing and other attestation
engagements, quality control of audits, and independence of public
company auditors
⩥ State Board of Public Accountancy Answer: Issues your CPA license;
frontline of oversight on ethical behavior; CPAs must follow the ethical
rules and standards of the state they are licensed in
⩥ 2014 restructure of the AICPA code Answer: Four sections:
Preface - applies to all AICPA members
Part 1 - rules related to those in public practice
Part 2 - rules and interpretations applicable to those in private practice
Part 3 - rules and interpretations applicable to everyone else
⩥ What are the 6 "pillars" or principles of the code? Answer:
Responsibilities
The public interest
Integrity
Objectivity & independence
Due care
Scope & nature of services
, ⩥ Responsibilities Answer: In carrying out your professional
responsibilities, you should exercise sensitive professional and moral
judgement
⩥ The public interest Answer: You should act in a way that will serve the
public interest, honor the public trust, and demonstrate your commitment
to professionalism
⩥ Integrity Answer: To maintain and broaden public confidence, you
should perform all professional responsibilities with the highest integrity
(being honest even when no one is looking or "above reproach")
⩥ Objectivity & independence Answer: You should maintain objectivity
and be free from conflicts of interest in discharging your professional
duties; this especially applies to public accountants that provide auditing
or other attestation services - being independent in fact and appearance
⩥ Due care Answer: You should observe the profession's technical and
ethical standards, strive continually to improve competence and the
quality of services, and discharge professional responsibility to the best
of your ability; also requires CPAs to exercise professional skepticism
performing audits/attestation services
⩥ Scope & nature of services Answer: As a member in public practice,
you should observe the principles of the AICPA Code in determining the
scope and nature of services to be performed
