AICPA Code of Conduct 72 Questions
Define Undue Influence Threat - ✔ ✔ The threat that a member will subordinate their judgment to
an individual associated with a client due to the individual's reputation or personality
Does the AICPA Code of Professional Conduct allow contingent fees? - ✔ ✔ Contingent fees are
sometimes allowed
Everything in Code 1 also applies to Code 2 and Code 3, except for Independence. In Code 2, a member
in business cannot be independent from their employer. - ✔ ✔ Everything in Code 1 also applies to
Code 2 and Code 3, except for Independence. In Code 2, a member in business cannot be independent
from their employer.
Explain the Independence Rule - ✔ ✔ Auditors should have an independent mental attitude and
should also be independent in their appearance.
Explain the Integrity and Objectivity Rule - ✔ ✔ Member shall maintain objectivity and integrity, shall
be free of conflicts of interest, and shall not knowingly misrepresent facts or subordinate his or her
judgments to other
FASAB - ✔ ✔ Federal Accounting Standards Advisory Board
FASB - ✔ ✔ Financial Accounting Standards
GASB - ✔ ✔ Governmental Accounting Standards Board
IASB - ✔ ✔ International Accounting Standards Board
If a CPA accepts a referral fee, must the CPA disclose the referral fee to the client? - ✔ ✔ Yes, CPAs
must tell their client they will be receiving a referral fee.
If a CPA charges a commission for any service, what is there obligation to tell the client about the
commission? - ✔ ✔ The CPA must tell their client that they will be receiving a commission
Part 2 of the AICPA Code of Professional Conduct applies to___. - ✔ ✔ Members in business
PCAOB - ✔ ✔ Public Company Accounting Oversight Board
The AICPA Code of Professional Conduct says that the CPA should identify ___ that might impair their
ability to comply with the Code and then consider safeguards that can eliminate it or reduce it to an
acceptable level. - ✔ ✔ Threats
The broad objectives in the AICPA Code of Professional Conduct are known as___? - ✔ ✔ Principles
, The introductory section of the AICPA Code of Professional Conduct concludes with a methodology to
resolve ethical conflicts. That methodology has how many steps? - ✔ ✔ 5 steps
The introductory section of the AICPA Code of Professional Conduct concludes with a methodology to
resolve ethical conflicts. The first step in that process is ___? - ✔ ✔ Identify the Conflict
The introductory section of the AICPA Code of Professional Conduct concludes with a methodology to
resolve ethical conflicts. The last step in the process is ___? - ✔ ✔ If the conflict is not resolved,
consider withdrawing from the situation
The new AICPA Code of Professional Conduct became effective on this date:
a) December 15, 2014
b) December 15, 2015 - ✔ ✔ December 14, 2014
The organization of the AICPA Code of Professional Conduct is organized in what they refer to as a ____
framework. - ✔ ✔ Conceptual
The principle of due care says ___? - ✔ ✔ A member 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 the member's ability.
The principle of integrity says __? - ✔ ✔ To maintain and broaden public confidence, members
should perform all professional responsibilities with the highest sense of integrity.,
The principle of objectivity and principle says ___? - ✔ ✔ A member should maintain objectivity and
be free of conflicts of interests in discharging professional responsibilities. A member in public practice
should be independent in fact and appearance when providing auditing and other attestation services.
Define Advocacy Threat - ✔ ✔ The threat that a member will promote a client's interest to the point
that the member's objectivity or independence is compromised
Define Familiarity Threat - ✔ ✔ A member will become too sympathetic due to long or close
relationship
Define Management Participation - ✔ ✔ A member will take on the role of client management
Define Self Interest Threat - ✔ ✔ A member could benefit from an interest with a client
Define Undue Influence Threat - ✔ ✔ The threat that a member will subordinate their judgment to
an individual associated with a client due to the individual's reputation or personality
Does the AICPA Code of Professional Conduct allow contingent fees? - ✔ ✔ Contingent fees are
sometimes allowed
Everything in Code 1 also applies to Code 2 and Code 3, except for Independence. In Code 2, a member
in business cannot be independent from their employer. - ✔ ✔ Everything in Code 1 also applies to
Code 2 and Code 3, except for Independence. In Code 2, a member in business cannot be independent
from their employer.
Explain the Independence Rule - ✔ ✔ Auditors should have an independent mental attitude and
should also be independent in their appearance.
Explain the Integrity and Objectivity Rule - ✔ ✔ Member shall maintain objectivity and integrity, shall
be free of conflicts of interest, and shall not knowingly misrepresent facts or subordinate his or her
judgments to other
FASAB - ✔ ✔ Federal Accounting Standards Advisory Board
FASB - ✔ ✔ Financial Accounting Standards
GASB - ✔ ✔ Governmental Accounting Standards Board
IASB - ✔ ✔ International Accounting Standards Board
If a CPA accepts a referral fee, must the CPA disclose the referral fee to the client? - ✔ ✔ Yes, CPAs
must tell their client they will be receiving a referral fee.
If a CPA charges a commission for any service, what is there obligation to tell the client about the
commission? - ✔ ✔ The CPA must tell their client that they will be receiving a commission
Part 2 of the AICPA Code of Professional Conduct applies to___. - ✔ ✔ Members in business
PCAOB - ✔ ✔ Public Company Accounting Oversight Board
The AICPA Code of Professional Conduct says that the CPA should identify ___ that might impair their
ability to comply with the Code and then consider safeguards that can eliminate it or reduce it to an
acceptable level. - ✔ ✔ Threats
The broad objectives in the AICPA Code of Professional Conduct are known as___? - ✔ ✔ Principles
, The introductory section of the AICPA Code of Professional Conduct concludes with a methodology to
resolve ethical conflicts. That methodology has how many steps? - ✔ ✔ 5 steps
The introductory section of the AICPA Code of Professional Conduct concludes with a methodology to
resolve ethical conflicts. The first step in that process is ___? - ✔ ✔ Identify the Conflict
The introductory section of the AICPA Code of Professional Conduct concludes with a methodology to
resolve ethical conflicts. The last step in the process is ___? - ✔ ✔ If the conflict is not resolved,
consider withdrawing from the situation
The new AICPA Code of Professional Conduct became effective on this date:
a) December 15, 2014
b) December 15, 2015 - ✔ ✔ December 14, 2014
The organization of the AICPA Code of Professional Conduct is organized in what they refer to as a ____
framework. - ✔ ✔ Conceptual
The principle of due care says ___? - ✔ ✔ A member 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 the member's ability.
The principle of integrity says __? - ✔ ✔ To maintain and broaden public confidence, members
should perform all professional responsibilities with the highest sense of integrity.,
The principle of objectivity and principle says ___? - ✔ ✔ A member should maintain objectivity and
be free of conflicts of interests in discharging professional responsibilities. A member in public practice
should be independent in fact and appearance when providing auditing and other attestation services.
Define Advocacy Threat - ✔ ✔ The threat that a member will promote a client's interest to the point
that the member's objectivity or independence is compromised
Define Familiarity Threat - ✔ ✔ A member will become too sympathetic due to long or close
relationship
Define Management Participation - ✔ ✔ A member will take on the role of client management
Define Self Interest Threat - ✔ ✔ A member could benefit from an interest with a client
