WGU D550 Ethics for Accountants OA Exam Actual Exam
2026/2027 – 80 Questions with Detailed Rationales | 100%
Verified | Pass Guaranteed – A+ Graded
Section A: AICPA Code of Professional Conduct – Principles & Rules
(Questions 1–20)
Q1: The AICPA Code of Professional Conduct is enforceable against:
A. All accountants regardless of membership
B. AICPA members specifically [CORRECT]
C. Only Big Four firm employees
D. Only CPAs licensed in New York
Correct Answer: B
Rationale: The AICPA Code is enforceable against AICPA members. However, state
boards of accountancy often adopt similar standards, making them binding on all CPAs
in those jurisdictions. Non-members (A) are not directly bound by the AICPA Code.
Q2: The AICPA Code's "Public Interest" principle recognizes that CPAs have a
responsibility to serve:
A. Only their paying clients
B. Clients, credit guarantors, governments, employers, investors, and the financial
community [CORRECT]
C. Only government agencies
D. Only shareholders of publicly traded companies
Correct Answer: B
Rationale: The Public Interest principle acknowledges that CPAs serve multiple
stakeholders beyond immediate clients, including the broader financial community and
public trust. This distinguishes professional accounting from pure client service.
Q3: Under the Integrity and Objectivity Rule (ET §1.100.001), AICPA members must:
A. Maximize client profits at all times
B. Be free of conflicts of interest and not knowingly misrepresent facts [CORRECT]
,C. Disclose all client information to regulators
D. Accept all client engagements
Correct Answer: B
Rationale: The Integrity and Objectivity Rule requires members to maintain objectivity,
avoid conflicts, and never knowingly misrepresent facts. It does not require profit
maximization (A), blanket disclosure (C), or accepting all engagements (D).
Q4: A CPA's spouse owns 100 shares of a client's publicly traded stock. This situation
creates:
A. No issue if the spouse manages the investment independently
B. A direct financial interest threat to independence [CORRECT]
C. Only an appearance issue
D. A safeguard, not a threat
Correct Answer: B
Rationale: Under AICPA independence rules, a spouse's direct financial interest in a
client creates a self-interest threat to independence. The CPA is deemed to have the
same financial interests as their spouse. This affects both independence in fact and
appearance.
Q5: "Independence in appearance" means:
A. The auditor actually has no conflicts
B. A reasonable third party would conclude the auditor is independent [CORRECT]
C. The auditor only works part-time
D. The auditor discloses all relationships
Correct Answer: B
Rationale: Independence in appearance concerns whether a reasonable, informed third
party would perceive the auditor as independent. Independence in fact (A) is the actual
mental state. Both are required for audit engagements.
Q6: The AICPA Code's "Due Care" principle requires members to:
A. Charge the highest possible fees
B. Act with competence, diligence, and attention to professional standards [CORRECT]
C. Accept every engagement offered
D. Disclose all client information publicly
Correct Answer: B
, Rationale: Due Care requires members to discharge professional responsibilities with
competence and diligence, maintaining professional knowledge and skill at the level
required to ensure clients receive competent service.
Q7: The "Scope and Nature of Services" principle in the AICPA Code requires members
to:
A. Provide any service a client requests
B. Evaluate whether services might create a conflict with their public interest
responsibilities [CORRECT]
C. Only perform audit services
D. Refuse all tax preparation work
Correct Answer: B
Rationale: Members must evaluate whether undertaking specific services would create
a conflict with their public interest responsibilities. This principle guides scope
decisions, not restricting services (C, D) but requiring ethical evaluation.
Q8: A CPA prepares a tax return for a client and discovers the client failed to report
$50,000 of income. The CPA should:
A. Immediately report the client to the IRS
B. Advise the client of the error and recommend correction [CORRECT]
C. Prepare the return as the client requests
D. Resign without explanation
Correct Answer: B
Rationale: The CPA should advise the client of the error and recommend correction.
Immediate IRS reporting (A) may violate confidentiality; preparing a knowingly false
return (C) violates integrity; resigning without explanation (D) abandons professional
responsibility.
Q9: The AICPA Code's "Responsibilities" principle states that members should:
A. Avoid all professional obligations
B. Exercise sensitive professional and moral judgments in all activities [CORRECT]
C. Prioritize personal gain over public interest
D. Only follow minimum legal requirements
Correct Answer: B
2026/2027 – 80 Questions with Detailed Rationales | 100%
Verified | Pass Guaranteed – A+ Graded
Section A: AICPA Code of Professional Conduct – Principles & Rules
(Questions 1–20)
Q1: The AICPA Code of Professional Conduct is enforceable against:
A. All accountants regardless of membership
B. AICPA members specifically [CORRECT]
C. Only Big Four firm employees
D. Only CPAs licensed in New York
Correct Answer: B
Rationale: The AICPA Code is enforceable against AICPA members. However, state
boards of accountancy often adopt similar standards, making them binding on all CPAs
in those jurisdictions. Non-members (A) are not directly bound by the AICPA Code.
Q2: The AICPA Code's "Public Interest" principle recognizes that CPAs have a
responsibility to serve:
A. Only their paying clients
B. Clients, credit guarantors, governments, employers, investors, and the financial
community [CORRECT]
C. Only government agencies
D. Only shareholders of publicly traded companies
Correct Answer: B
Rationale: The Public Interest principle acknowledges that CPAs serve multiple
stakeholders beyond immediate clients, including the broader financial community and
public trust. This distinguishes professional accounting from pure client service.
Q3: Under the Integrity and Objectivity Rule (ET §1.100.001), AICPA members must:
A. Maximize client profits at all times
B. Be free of conflicts of interest and not knowingly misrepresent facts [CORRECT]
,C. Disclose all client information to regulators
D. Accept all client engagements
Correct Answer: B
Rationale: The Integrity and Objectivity Rule requires members to maintain objectivity,
avoid conflicts, and never knowingly misrepresent facts. It does not require profit
maximization (A), blanket disclosure (C), or accepting all engagements (D).
Q4: A CPA's spouse owns 100 shares of a client's publicly traded stock. This situation
creates:
A. No issue if the spouse manages the investment independently
B. A direct financial interest threat to independence [CORRECT]
C. Only an appearance issue
D. A safeguard, not a threat
Correct Answer: B
Rationale: Under AICPA independence rules, a spouse's direct financial interest in a
client creates a self-interest threat to independence. The CPA is deemed to have the
same financial interests as their spouse. This affects both independence in fact and
appearance.
Q5: "Independence in appearance" means:
A. The auditor actually has no conflicts
B. A reasonable third party would conclude the auditor is independent [CORRECT]
C. The auditor only works part-time
D. The auditor discloses all relationships
Correct Answer: B
Rationale: Independence in appearance concerns whether a reasonable, informed third
party would perceive the auditor as independent. Independence in fact (A) is the actual
mental state. Both are required for audit engagements.
Q6: The AICPA Code's "Due Care" principle requires members to:
A. Charge the highest possible fees
B. Act with competence, diligence, and attention to professional standards [CORRECT]
C. Accept every engagement offered
D. Disclose all client information publicly
Correct Answer: B
, Rationale: Due Care requires members to discharge professional responsibilities with
competence and diligence, maintaining professional knowledge and skill at the level
required to ensure clients receive competent service.
Q7: The "Scope and Nature of Services" principle in the AICPA Code requires members
to:
A. Provide any service a client requests
B. Evaluate whether services might create a conflict with their public interest
responsibilities [CORRECT]
C. Only perform audit services
D. Refuse all tax preparation work
Correct Answer: B
Rationale: Members must evaluate whether undertaking specific services would create
a conflict with their public interest responsibilities. This principle guides scope
decisions, not restricting services (C, D) but requiring ethical evaluation.
Q8: A CPA prepares a tax return for a client and discovers the client failed to report
$50,000 of income. The CPA should:
A. Immediately report the client to the IRS
B. Advise the client of the error and recommend correction [CORRECT]
C. Prepare the return as the client requests
D. Resign without explanation
Correct Answer: B
Rationale: The CPA should advise the client of the error and recommend correction.
Immediate IRS reporting (A) may violate confidentiality; preparing a knowingly false
return (C) violates integrity; resigning without explanation (D) abandons professional
responsibility.
Q9: The AICPA Code's "Responsibilities" principle states that members should:
A. Avoid all professional obligations
B. Exercise sensitive professional and moral judgments in all activities [CORRECT]
C. Prioritize personal gain over public interest
D. Only follow minimum legal requirements
Correct Answer: B
