AICPA ETHICS FINAL {ALL COMBINED} COMPLETE SET REAL EXAM QUESTIONS & CORRECT ANSWERS

AICPA ETHICS FINAL {ALL COMBINED} COMPLETE SET REAL EXAM QUESTIONS & CORRECT ANSWERS What are the 10 steps in the ethical decision making model? - ANSWER Step One: Recognize the Ethical Issue Step Two: Gather the Critical Facts Step Three: Identify the Stakeholders Step Four: Consider Alternatives Step Five: Consider the Effect on Stakeholders Step Six: Consider Your Comfort Level Step Seven: Consider Rules, Regulations, and Laws Step Eight: Make a Decision Step Nine: Document your Efforts Step Ten: Evaluate the Outcome What does recognizing a potential ethical issue look like? - ANSWER What does considering your comfort level look like? - ANSWER Ask yourself "If I had to discuss your decision in public, would you be concerned about it reflects on your ethics?" What is the difference between the AICPA, SEC, PCAOB, and your state board of public accountancy? - ANSWER The AICPA is the national professional organization for CPAs. AICPA provides resources and information to members and coordinate activities with state CPA societies. SEC empowered by congress to regulate financial reporting of PUBLICLY-held companies. SEC establishes and enforces rules on accounting and auditing (including auditor independence). PCAOB (created by SOX and overseen by SEC) establish rules with respect to auditing and other attestation engagements, quality control of audits, and independence of public auditors. State Board issues CPA license and are frontline for oversight on ethical behavior. Can create state ethics codes (can create separate ones, or incorporate AICPA rules). Must follow state board rules for state they are licensed in. What is the new structure of the AICPA Ethics codification? - ANSWER Preface - overview, principles, and definitions) Part 1 - rules related to those in public practice, conceptual framework on independence and other rules on ethical conflicts Part 2 - Rules and interpretations applicable to members in business (private practice) Part 3 - Rules and interpretations applicable to all other members (retired, between jobs, etc.) What are the 4 sections of the AICPA Ethics codification? - ANSWER Pretty sure it's just this again (looked it up and this is what I got everywhere I looked) 1. Preface - overview, principles, and definitions 2. Part 1 - Rules related to those in public practice, conceptual framework on independence and other rules, guidance on ethical conflict resolution 3. Part 2 - Rules and interpretations applicable to members in business (private practice) 4. Part 3 - Rules and interpretations applicable to all other members (retired, between jobs, etc.) What are the 6 pillars/principles of the code and what do each mean? - ANSWER (1) responsibilities - In carrying out your professional responsibilities, you should exercise sensitive professional and moral judgment (2) serve the public interest - You should act in a way that will serve the public interest, honor the public trust, and demonstrate your commitment to professionalism (3) integrity - To maintain and broaden public confidence, you should perform all professional responsibilities with the highest sense of integrity (being honest even when no one is looking or "above reproach"). (4) objectivity and independence - You should maintain objectivity and be free from conflicts of interest in discharging your professional duties. (5) due care and - You should observe the profession's technical and ethical standards, strive continually to improve competence and the quality of services, and discharge professional responsibility to the best of your ability. (6) scope and nature of services - As a member in public practice, you should observe the principles of the AICPA Code in determining the scope and nature of services to be performed What is the Professional Creed? - ANSWER As a professional CPA, I willingly accept my responsibility (1) to serve the public interest, (2) to maintain and broaden public confidence by performing all my responsibilities with integrity, (3) to maintain my objectivity and be free of conflicts of interest, and to discharge all of my responsibilities with due care.