AICPA Ethics Code Exam Questions with Correct Answers (Grade
A+)
Question 1: 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?"
A. Recognize ethical issues
B. Gather critical facts
C. Consider the effect on stakeholders
D. Consider rules, regulations, and laws
Answer: D. Consider rules, regulations, and laws Step 7 asks this question. You may determine that the
greatest benefit and least amount of harm would likely result if you take a particular course of action, but if
that course of action is inconsistent with the profession's rules of conduct, you may not ignore those rules.
Question 2: 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"
A. Recognize ethical issues
B. Consider your comfort level
C. Consider the effect on stake holders
D. Consider rules, regulations, and laws
Answer: B. Consider your comfort level Step 6 asks you to consider your comfort level. Before you make a
decision about the correct action when facing an ethical issue, you should ask yourself some questions.
Question 3: CPAs must follow the rules and standards promulgated by which body?
A. AICPA
B. SEC
C. PCAOB
D. Your state CPA licensing board
Answer: D. Your state CPA licensing board State CPA licensing boards are charged with issuing CPA
licenses and overseeing the ethical conduct of CPAs in 55 jurisdictions in the United States. It is critically
important for CPAs to know their state board's requirements. If you are licensed by more than one state
board, you should familiarize yourself with each state's requirements.
Question 4: As a professional CPA, I have the greatest responsibility to serve:
A. My clients
B. My best interest
C. The public's interest
D. My superior's interest
Answer: C. Your primary responsibility is to serve the public interest.
Page 1
, Question 5: As a professional CPA, I have a responsibility to maintain and broaden public confidence
by performing all my responsibilities with:
A. Integrity
B. Speed
C. Agility
D. Perfection
Answer: A. Integrity Integrity is one of the cornerstones of our profession.
Question 6: I also must maintain my objectivity, be free of conflicts of interest, and discharge all of my
responsibilities with due...
A. Respect
B. Care
C. Diligence
D. Speed
Answer: B. Care Due care implies a certain level of quality and competence in the performance of services.
Question 7: Bob is a CPA who works as as senior accountant in a small but diversified financial services
company. Bob works for the parent company (bank) in a division that makes business loans. His
mother has been offered a seat on the board of directors of a subsidiary company that is an investment
advisor. Does Bob's situation cause a significant threat to Bob's integrity and objectivity (conflict of
interest)?
A. No. The bank and investment advisory firm are separate and distinct businesses
B. Yes. Directorships of relatives always result in conflicts of interest
C. Maybe. But more facts should be considered
Answer: C. Maybe. But more facts should be considered We need more information to determine whether
this situation creates a significant threat to Bob's ability to be objective.
Question 8: Which factor must be in place for you to perform services in light of a potential conflict of
interest?
A. The affected parties have agreed to bring the matter to the BOD
B. The affected parties have agreed not to sue you or your firm
C. You have determined that your threats to objectivity are at an acceptable level
D. You have determined that some third parties might not question your objectivity
Answer: C. You have determined that your threats to objectivity are at an acceptable level To proceed with
evaluating your potential conflict of interest, you must conclude that you can provide the services
objectively (that is, threats to you objectivity are insignificant or have been reduced to an acceptable level).
Page 2
A+)
Question 1: 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?"
A. Recognize ethical issues
B. Gather critical facts
C. Consider the effect on stakeholders
D. Consider rules, regulations, and laws
Answer: D. Consider rules, regulations, and laws Step 7 asks this question. You may determine that the
greatest benefit and least amount of harm would likely result if you take a particular course of action, but if
that course of action is inconsistent with the profession's rules of conduct, you may not ignore those rules.
Question 2: 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"
A. Recognize ethical issues
B. Consider your comfort level
C. Consider the effect on stake holders
D. Consider rules, regulations, and laws
Answer: B. Consider your comfort level Step 6 asks you to consider your comfort level. Before you make a
decision about the correct action when facing an ethical issue, you should ask yourself some questions.
Question 3: CPAs must follow the rules and standards promulgated by which body?
A. AICPA
B. SEC
C. PCAOB
D. Your state CPA licensing board
Answer: D. Your state CPA licensing board State CPA licensing boards are charged with issuing CPA
licenses and overseeing the ethical conduct of CPAs in 55 jurisdictions in the United States. It is critically
important for CPAs to know their state board's requirements. If you are licensed by more than one state
board, you should familiarize yourself with each state's requirements.
Question 4: As a professional CPA, I have the greatest responsibility to serve:
A. My clients
B. My best interest
C. The public's interest
D. My superior's interest
Answer: C. Your primary responsibility is to serve the public interest.
Page 1
, Question 5: As a professional CPA, I have a responsibility to maintain and broaden public confidence
by performing all my responsibilities with:
A. Integrity
B. Speed
C. Agility
D. Perfection
Answer: A. Integrity Integrity is one of the cornerstones of our profession.
Question 6: I also must maintain my objectivity, be free of conflicts of interest, and discharge all of my
responsibilities with due...
A. Respect
B. Care
C. Diligence
D. Speed
Answer: B. Care Due care implies a certain level of quality and competence in the performance of services.
Question 7: Bob is a CPA who works as as senior accountant in a small but diversified financial services
company. Bob works for the parent company (bank) in a division that makes business loans. His
mother has been offered a seat on the board of directors of a subsidiary company that is an investment
advisor. Does Bob's situation cause a significant threat to Bob's integrity and objectivity (conflict of
interest)?
A. No. The bank and investment advisory firm are separate and distinct businesses
B. Yes. Directorships of relatives always result in conflicts of interest
C. Maybe. But more facts should be considered
Answer: C. Maybe. But more facts should be considered We need more information to determine whether
this situation creates a significant threat to Bob's ability to be objective.
Question 8: Which factor must be in place for you to perform services in light of a potential conflict of
interest?
A. The affected parties have agreed to bring the matter to the BOD
B. The affected parties have agreed not to sue you or your firm
C. You have determined that your threats to objectivity are at an acceptable level
D. You have determined that some third parties might not question your objectivity
Answer: C. You have determined that your threats to objectivity are at an acceptable level To proceed with
evaluating your potential conflict of interest, you must conclude that you can provide the services
objectively (that is, threats to you objectivity are insignificant or have been reduced to an acceptable level).
Page 2
