AICPA Ethics Exam Questions with Correct Answers (Grade A+)
Question 1: helps you actively work through gray area and choose the best possible solution to an
ethical dilema Step 1: Recognize the ethical issue Step 2: Gather the critical facts Step 3: Identify the
stakeholders Step 4: Consider your alternatives Step 5: Consider the effect on stakeholders Step 6:
Consider your comfort level Step 7: Consider rules, regulations and laws Step 8: Make a decision Step
9: Document your efforts Step 10: Evaluate the outcome
Answer: Ethical Decision Making Model
Question 2: Recognize the ethical issue
Answer: Step 1
Question 3: Gather the critical facts -you may not have all the facts, but you need the key ones
(material)
Answer: Step 2
Question 4: Identify the stakeholders -who is affected by your decisions/actions -consider as many as
possible
Answer: Step 3
Question 5: Consider your alternatives -approaches you could take to address this matter and resolve
the ethical conflict
Answer: Step 4
Question 6: Consider the effect on stakeholders -effect of each alternative
Answer: Step 5
Question 7: Consider your comfort level -how comfortable are you with each option -how would you
feel if you have to discuss your decision in public
Answer: Step 6
Question 8: Consider rules, regulations, and laws -rules set by AICPA, state accountancy board, state
CPA society
Answer: Step 7
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, Question 9: Make a decision -take the time you need -discuss with colleague, gain perspectives, counsel,
don't be hasty
Answer: Step 8
Question 10: Document your efforts -your understanding of the facts -who you consulted with and their
professional affiliations -your decision
Answer: Step 9
Question 11: Evaluate the outcome -would you have done anything differently
Answer: Step 10
Question 12: set ethics standards and rules for members of the accounting profession State CPA
licensing boards AICPA SEC PCABO IFAC IRS GAO DOL others
Answer: Professional & Regulatory Bodies
Question 13: issues CPA licesnes and oversee ethical conduct of jurisdiction
Answer: State CPA Licensing Boards
Question 14: American Institute of Certified Public Accountants national professional organization for
all CPAs; work with state CPA societies -PEEC: Professional Ethics Executive Committee promulgates
and enforces ethics and independence rules that apply to all members
Answer: AICPA
Question 15: Securities and Exchange Commission federal agency establishes and enforces accounting
and auditing policies
Answer: SEC
Question 16: Public Company Accounting Oversight Board establishes auditing, attestation, quality
control, ethics and independence standards for public company auditors
Answer: PCAOB
Question 17: International Federation of Accountants develop standards for auditing, education, ethics,
and public sector financial reporting in the accounting profession globally promotes good ethical
practices
Answer: IFAC
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Question 1: helps you actively work through gray area and choose the best possible solution to an
ethical dilema Step 1: Recognize the ethical issue Step 2: Gather the critical facts Step 3: Identify the
stakeholders Step 4: Consider your alternatives Step 5: Consider the effect on stakeholders Step 6:
Consider your comfort level Step 7: Consider rules, regulations and laws Step 8: Make a decision Step
9: Document your efforts Step 10: Evaluate the outcome
Answer: Ethical Decision Making Model
Question 2: Recognize the ethical issue
Answer: Step 1
Question 3: Gather the critical facts -you may not have all the facts, but you need the key ones
(material)
Answer: Step 2
Question 4: Identify the stakeholders -who is affected by your decisions/actions -consider as many as
possible
Answer: Step 3
Question 5: Consider your alternatives -approaches you could take to address this matter and resolve
the ethical conflict
Answer: Step 4
Question 6: Consider the effect on stakeholders -effect of each alternative
Answer: Step 5
Question 7: Consider your comfort level -how comfortable are you with each option -how would you
feel if you have to discuss your decision in public
Answer: Step 6
Question 8: Consider rules, regulations, and laws -rules set by AICPA, state accountancy board, state
CPA society
Answer: Step 7
Page 1
, Question 9: Make a decision -take the time you need -discuss with colleague, gain perspectives, counsel,
don't be hasty
Answer: Step 8
Question 10: Document your efforts -your understanding of the facts -who you consulted with and their
professional affiliations -your decision
Answer: Step 9
Question 11: Evaluate the outcome -would you have done anything differently
Answer: Step 10
Question 12: set ethics standards and rules for members of the accounting profession State CPA
licensing boards AICPA SEC PCABO IFAC IRS GAO DOL others
Answer: Professional & Regulatory Bodies
Question 13: issues CPA licesnes and oversee ethical conduct of jurisdiction
Answer: State CPA Licensing Boards
Question 14: American Institute of Certified Public Accountants national professional organization for
all CPAs; work with state CPA societies -PEEC: Professional Ethics Executive Committee promulgates
and enforces ethics and independence rules that apply to all members
Answer: AICPA
Question 15: Securities and Exchange Commission federal agency establishes and enforces accounting
and auditing policies
Answer: SEC
Question 16: Public Company Accounting Oversight Board establishes auditing, attestation, quality
control, ethics and independence standards for public company auditors
Answer: PCAOB
Question 17: International Federation of Accountants develop standards for auditing, education, ethics,
and public sector financial reporting in the accounting profession globally promotes good ethical
practices
Answer: IFAC
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