AICPA Ethics Rules & CPA Exam 100% CORRECT ANSWERS

Which of the following are not example of stakeholders? A.Employees B. Customers C. Suppliers D. Borrowers E. All above could be stakeholders E According to the AICPA Code of Professional Conduct, Rule 101-Independence, an audit requires that an individual perform his or her services with integrity and objectivity. There must be reasonable assurance that this is being done during the Page 4 of 5 engagement. What must an accountant do to be in compliance with the generally accepted auditing standards? a. Be independent in fact. b. Be independent in appearance. c. Both. d. Neither C To whom does the AICPA Code of Professional Conduct apply: a. Members in Public practice b. Members in Industry c. Members in Government d. Members in Education e. All of the above E T/F: According to AICPA Code of Professional Conduct, a CPA may receive a contingent fee for performing an audit of a financial statement? False AICPA members should act in a way that will: a. Serve the public interest b. Honor the public trust c. Demonstrate commitment to professionalism d. All of the above e. None of the above. D Regarding the fees of registered independent accounting firms on a audit engagement the following is true: A. The firm may charge a client a commission based on recovery received due to finding an issue on the financials. B. The firm may charge a flat fee for all work. C. The firm may charge a fee based on the number of errors it find in the clients financials. D. The firm can receive commissions from third parties for work performed on a client. B What is a positive way to maintain a quality relationship with a client? a. Have written fee agreements, with clearly defined terms (i.e. billing) and, if needed, provide cost estimates. b. Complete work at agreed upon deadlines. c. Use appropriate phone protocol to maintain confidentiality with clients. d. Monitor quality of all work, including drafts as well as client status reports. e. All of the above. E Which of the following organizations licenses CPAs: a. AICPA. b. Texas Society of CPAs. c. Texas State Board of Public Accountancy. d. All of the above. e. None of the above. C A member of the AICPA must: a. Undertake only those professional services that the member or member's firm can reasonably expect to be completed with professional competence. b. Exercise due professional care in the performance of professional services. c. Adequately plan and supervise the performance of professional services. d. All of the above. D T/F: The enforcement division of TSBPA may take legal action against a CPA that fails to follow the Board's rules. True What's new about the Online Code of Professional Conduct by the AICPA? a. New restructured ethics code effective Dec 15, 2014 b. New section on changes of the code within the last 12 months (See 0.600) c. Appendix C Revision History Table (Changes after Jun 1, 2014) and D: Mapping Document (from new to old code) d. All the above D