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AICPA ETHICS EXAM QUESTIONS WITH 100% CORRECT ANSWERS
LATEST 2026/2027 A+ GRADED ASSURED PASS
Integrity and Objectivity
- maintain objectivity and integrity
- be free of conflicts of interest
- shall not knowingly misrepresent facts or subordinate his or her
judgment to others
Integrity: honest and candid; measured in terms of what is right and
just
Helping Hands Case Study
-an organization that is under financial duress may have strong
incentives to "bend the rules"
-plan was to "temporarily be relieved of debt" until financial
statements can be made and appear good ("goodwill gesture"/legal)
It's legal, but is it ethical?
Objections:
-manipulating financial statements is a violation of "integrity and
objectivity rule" regarding false and misleading information
-material changes to financial statements are a form of deceit
-changes could affect user's decision about whether to continue
donations
,2
-making change may not break any laws, but it is unethical
Never subordinate your judgment to another person, even if that
person is in a position of authority over you
Whistle-Blowing
-the act of alerting proper parties outside your organization of
unethical conduct by employees of your client or employer
-consider all relevant professional and legal requirements
-exhaust all appropriate channels first and obtain legal and other
advice before making your decision
-consider provisions in the code on client and employer
confidentiality
Revenue Recognition Case Study
-Company books revenue early (on ship date instead of when
customer receives goods)
-Go off of what they did historically and says it's up to judgment
Conceptual Framework
Employs a "threats and safeguards" approach to analyzing threats to
compliance with the ethics rules that members must employ when
evaluating a matter that the code does not specifically address
, 3
1. Identify threat(s) to compliance with one or more rules
2. Evaluate whether the threat (or threats in the aggregate, if
applicable) is significant
--if the threat is not significant, stop - no further consideration is
needed
--if the threat is significant, proceed to 3
3. Identify and apply safeguards
--if safeguard(s) would eliminate the threat or reduce the threat to
an acceptable level, proceed with professional services or
engagement
--if a safeguard(s) is not available or insufficient (that is, does not
reduce threat(s) to acceptable level), decline or discontinue
professional service or resign from the engagement
Definitions
Threats: relationships or circumstances that could compromise a
member's compliance with the rules. These include adverse interest;
advocacy, familiarity, management participation, self-interest, self-
review, and undue influence
Acceptable level: a level at which a reasonable and informed third
party who is aware of the relevant information would be expected to
conclude that a member's compliance with the rules is not
compromised
Safeguard: may partially or completely eliminate a threat or diminish
the influence of a threat. To be effective, safeguards should
eliminate the threat or reduce it to an acceptable level.
AICPA ETHICS EXAM QUESTIONS WITH 100% CORRECT ANSWERS
LATEST 2026/2027 A+ GRADED ASSURED PASS
Integrity and Objectivity
- maintain objectivity and integrity
- be free of conflicts of interest
- shall not knowingly misrepresent facts or subordinate his or her
judgment to others
Integrity: honest and candid; measured in terms of what is right and
just
Helping Hands Case Study
-an organization that is under financial duress may have strong
incentives to "bend the rules"
-plan was to "temporarily be relieved of debt" until financial
statements can be made and appear good ("goodwill gesture"/legal)
It's legal, but is it ethical?
Objections:
-manipulating financial statements is a violation of "integrity and
objectivity rule" regarding false and misleading information
-material changes to financial statements are a form of deceit
-changes could affect user's decision about whether to continue
donations
,2
-making change may not break any laws, but it is unethical
Never subordinate your judgment to another person, even if that
person is in a position of authority over you
Whistle-Blowing
-the act of alerting proper parties outside your organization of
unethical conduct by employees of your client or employer
-consider all relevant professional and legal requirements
-exhaust all appropriate channels first and obtain legal and other
advice before making your decision
-consider provisions in the code on client and employer
confidentiality
Revenue Recognition Case Study
-Company books revenue early (on ship date instead of when
customer receives goods)
-Go off of what they did historically and says it's up to judgment
Conceptual Framework
Employs a "threats and safeguards" approach to analyzing threats to
compliance with the ethics rules that members must employ when
evaluating a matter that the code does not specifically address
, 3
1. Identify threat(s) to compliance with one or more rules
2. Evaluate whether the threat (or threats in the aggregate, if
applicable) is significant
--if the threat is not significant, stop - no further consideration is
needed
--if the threat is significant, proceed to 3
3. Identify and apply safeguards
--if safeguard(s) would eliminate the threat or reduce the threat to
an acceptable level, proceed with professional services or
engagement
--if a safeguard(s) is not available or insufficient (that is, does not
reduce threat(s) to acceptable level), decline or discontinue
professional service or resign from the engagement
Definitions
Threats: relationships or circumstances that could compromise a
member's compliance with the rules. These include adverse interest;
advocacy, familiarity, management participation, self-interest, self-
review, and undue influence
Acceptable level: a level at which a reasonable and informed third
party who is aware of the relevant information would be expected to
conclude that a member's compliance with the rules is not
compromised
Safeguard: may partially or completely eliminate a threat or diminish
the influence of a threat. To be effective, safeguards should
eliminate the threat or reduce it to an acceptable level.
