WGU D550 ETHICS FOR ACCOUNTANTS
TEST PAPER WITH COMPLETE
QUESTIONS AND ANSWERS
◉ Organizations Ethics Officer
Answer: ensures that the organization is in compliance wth the
laws and regulation,s including SEC securities laws, SOX, and
Dodd Frank
◉ - established benefits for whistleblowers who aid in recovery of
$1 million or more and they can receive 10-30% of the recovery
- defines a whistleblower as any individual who voluntarily
provides infomrtaion to the SEC relating to a violation of federal
securities laws
- creates the concern of whether individuals will want to go
external rather than internal with their information in order to
receive a reward
- sets aside the confidentiality requirement
Answer: Dodd-Frank Wall Street Reform and Consumer
Protection Act (2010):
◉ because they had a preexisting legal duty to report the
wrongdoing
Answer: Why are internal accountants excluded from receiving
whistleblower awards under Dodd-Frank?
,◉ - disclosure to the SEC is needed to prevent "substaintial injury"
to the financial interest of an entity or its investors
- the whistleblower "reasonably believes" the entitiy is impeding
investigation of the misdonduct (destruction of evidence etc.)
- the whistleblower has first reported the violation internally and
at least 1230 days have passed with no action
Answer: Internal accountants are eligible to become Dodd-Frank
whistleblowers if:
◉ - whether the violations have a material effect on the FS
- has management or the board taken action?
- if not, auditor must report to the board
Answer: Process in deciding to report fraud:
◉ $50 million
Answer: What was the largest ever whistleblower award?
◉ - may drive would be whistleblowers to the SEC sooner
- may restrict reports because of fear of retaliation
- seems to contradict the need for internal reporting before going
outside and reporting to the SEC
- may create unnessesary stress between accounting/compliance
officials and top management
Answer: Digital Reality Trust v Sommers:
, ◉ - clarifies that employer confidentiality agreements fo not
supersede federal whistleblower rirghts
- signals that relaitory lawsuits against whistleblowers are
unlikely to succeed
- provides guidance to corporate whistleblowers concerning the
use of company documents to blow the whistle
Answer: Erhart v Bofl Holdings:
◉ - conceptual framework incorporates a "threats and
safeguards" approach
- new section on "Ethical Conflicts"
- violaton of the rules for a CPA to permit others acting on his
behalf to engage in behavior that would have been a violation for
the CPA
- when differences exist between AICPA and those of the licensing
state board of accountancy, the CPA should follow the state
board's rules
Answer: AICPA Revised Code: Independence for Members in
Public Practice
◉ - identifying and evaluating threats to independence
- determining whether safeguards already eliminate or
sufficiently mitigate identified threats and whether threats that
have not yet been mitigated can be eliminated or sufficiently
mitigated by safeguards
TEST PAPER WITH COMPLETE
QUESTIONS AND ANSWERS
◉ Organizations Ethics Officer
Answer: ensures that the organization is in compliance wth the
laws and regulation,s including SEC securities laws, SOX, and
Dodd Frank
◉ - established benefits for whistleblowers who aid in recovery of
$1 million or more and they can receive 10-30% of the recovery
- defines a whistleblower as any individual who voluntarily
provides infomrtaion to the SEC relating to a violation of federal
securities laws
- creates the concern of whether individuals will want to go
external rather than internal with their information in order to
receive a reward
- sets aside the confidentiality requirement
Answer: Dodd-Frank Wall Street Reform and Consumer
Protection Act (2010):
◉ because they had a preexisting legal duty to report the
wrongdoing
Answer: Why are internal accountants excluded from receiving
whistleblower awards under Dodd-Frank?
,◉ - disclosure to the SEC is needed to prevent "substaintial injury"
to the financial interest of an entity or its investors
- the whistleblower "reasonably believes" the entitiy is impeding
investigation of the misdonduct (destruction of evidence etc.)
- the whistleblower has first reported the violation internally and
at least 1230 days have passed with no action
Answer: Internal accountants are eligible to become Dodd-Frank
whistleblowers if:
◉ - whether the violations have a material effect on the FS
- has management or the board taken action?
- if not, auditor must report to the board
Answer: Process in deciding to report fraud:
◉ $50 million
Answer: What was the largest ever whistleblower award?
◉ - may drive would be whistleblowers to the SEC sooner
- may restrict reports because of fear of retaliation
- seems to contradict the need for internal reporting before going
outside and reporting to the SEC
- may create unnessesary stress between accounting/compliance
officials and top management
Answer: Digital Reality Trust v Sommers:
, ◉ - clarifies that employer confidentiality agreements fo not
supersede federal whistleblower rirghts
- signals that relaitory lawsuits against whistleblowers are
unlikely to succeed
- provides guidance to corporate whistleblowers concerning the
use of company documents to blow the whistle
Answer: Erhart v Bofl Holdings:
◉ - conceptual framework incorporates a "threats and
safeguards" approach
- new section on "Ethical Conflicts"
- violaton of the rules for a CPA to permit others acting on his
behalf to engage in behavior that would have been a violation for
the CPA
- when differences exist between AICPA and those of the licensing
state board of accountancy, the CPA should follow the state
board's rules
Answer: AICPA Revised Code: Independence for Members in
Public Practice
◉ - identifying and evaluating threats to independence
- determining whether safeguards already eliminate or
sufficiently mitigate identified threats and whether threats that
have not yet been mitigated can be eliminated or sufficiently
mitigated by safeguards
