AICPA ETHICS FINAL QUESTIONS AND ANSWERS

Generally, ethical dilemmas are not routine. Therefore, there is no way that an individual can be prepared or informed for a problem ahead of time. - Answer- False, It is important that you do your homework and understand how to protect yourself and your employer. This will give you a "head's up" when you face potential ethical dilemmas PCAOB set auditing, quality control, ethics, independence and other standards relating to the preparation of audit reports. - Answer- False, Only for Issuers The AICPA bylaws require that members adhere to the rules in the Code. - Answer- True The American Institute of Certified Public Accountants has been the primary ethical rules for internal auditors. - Answer- False Members employed by others to prepare financial statements or to perform auditing must adhere to the objectivity and independence principle in the AICPA Code of Conduct - Answer- False, They are charged with the same responsibility for objectivity as members in public practice The AICPA Code of Professional Conduct derives its authority from specific federal legislation. - Answer- False, The AICPA Code of Professional Conduct derives its authority from the Bylaws of the AICPA. An ethical dilemma is defined as a situation where two or more "right" values are in conflict - Answer- true Members would be violating the Integrity principle if they have inadvertent errors and have honest differences of opinion while performing their duties. - Answer- False, Integrity can accommodate the inadvertent error and honest difference of opinion; it cannot accommodate deceit or subordination of principles. AICPA Interpretations limit the scope and application of the rules. - Answer- False, The interpretations of the rules of conduct provide guidelines about the scope and application of the rules but are not intended to limit such scope or application The AICPA Code of Professional Conduct provides practical guidance to only members in public practice - Answer- False, The AICPA Code provides practice guidance for all members. Under the Rules of Professional Conduct promulgated under the Texas Public Accountancy Act, all of the rules of professional conduct shall apply to and must be obser