AICPA ETHICS CODE EXAM TESTED
QUESTIONS AND COMPLETE SOLUTIONS
◉ According to the standards of the profession, which of the
following activities may be required in exercising due care?
Answer: Consulting with experts
◉ According to the AICPA Code of Professional Conduct, which of
the following actions will impair independence?
Answer: Participating in the hiring or termination of a client's
employees
◉ In which of the following situations would a CPA's
independence be considered to be impaired?
I. The CPA maintains a checking account that is fully insured by a
government deposit insurance agency at an audit-client financial
institution.
II. The CPA has a direct financial interest in an audit client, but the
interest is maintained in a blind trust.
III. The CPA owns a commercial building and leases it to an audit
client. The lease qualifies as a capital lease.
Answer: II and III
, ◉ According to the AICPA Code of Professional Conduct, which of
the following activities results in an act discreditable to the
profession?
Answer: A CPA solicits recent Uniform CPA Examination questions
without written authorization from the AICPA.
◉ In which of the following situations is there a violation of client
confidentiality under the AICPA Code of Professional Conduct?
Answer: A member whose practice is primarily bankruptcy
discloses a client's name.
◉ Which of the following is a correct statement about the
circumstances under which a CPA firm may or may not disclose
the names of its clients without the clients' express permission?
Answer: A CPA firm may disclose this information unless
disclosure would suggest that the client may be experiencing
financial difficulties.
◉ A CPA in public practice may not disclose confidential client
information regarding auditing services without the client's
consent in response to which of the following situations?
Answer: A letter to the client from the IRS
◉ Which of the following acts by a CPA is a violation of
professional standards regarding the confidentiality of client
information?
QUESTIONS AND COMPLETE SOLUTIONS
◉ According to the standards of the profession, which of the
following activities may be required in exercising due care?
Answer: Consulting with experts
◉ According to the AICPA Code of Professional Conduct, which of
the following actions will impair independence?
Answer: Participating in the hiring or termination of a client's
employees
◉ In which of the following situations would a CPA's
independence be considered to be impaired?
I. The CPA maintains a checking account that is fully insured by a
government deposit insurance agency at an audit-client financial
institution.
II. The CPA has a direct financial interest in an audit client, but the
interest is maintained in a blind trust.
III. The CPA owns a commercial building and leases it to an audit
client. The lease qualifies as a capital lease.
Answer: II and III
, ◉ According to the AICPA Code of Professional Conduct, which of
the following activities results in an act discreditable to the
profession?
Answer: A CPA solicits recent Uniform CPA Examination questions
without written authorization from the AICPA.
◉ In which of the following situations is there a violation of client
confidentiality under the AICPA Code of Professional Conduct?
Answer: A member whose practice is primarily bankruptcy
discloses a client's name.
◉ Which of the following is a correct statement about the
circumstances under which a CPA firm may or may not disclose
the names of its clients without the clients' express permission?
Answer: A CPA firm may disclose this information unless
disclosure would suggest that the client may be experiencing
financial difficulties.
◉ A CPA in public practice may not disclose confidential client
information regarding auditing services without the client's
consent in response to which of the following situations?
Answer: A letter to the client from the IRS
◉ Which of the following acts by a CPA is a violation of
professional standards regarding the confidentiality of client
information?
