LATEST AICPA ETHICS EXAM 2025 WITH EXAM
PREP QUESTIONS AND CORRECT VERIFIED
ANSWERS/ AICPA ETHICS/CODE OF
PROFESSIONAL CONDUCT TEST 2025 (NEW!)
To whom does the CPA owe ultimate allegiance in carrying out professional
obligations?
a. stockholders
b. public interest
c. client
d. stakeholders - ANSWER-b. public interest
Which of the following is not a safeguard that can help to mitigate threats to
independence?
a. quality control safeguards created by the audit firm
b. safeguards created by the corporate governance system of the attest client
c. safeguards created by the Sarbanes-Oxley Act
d. safeguards performed by the audit firm that are the responsibility of
management - ANSWER-d. safeguards performed by the audit firm that are the
responsibility of management
Safeguards implemented by the attest client include each of the following except:
AICPA ETHICS/CODE OF PROFESSIONAL
CONDUCT TEST 2025
,a. policies and procedures to address ethical conduct
b. the tone at the top set by executive management
c. proper oversight by client management
d. management participation in the client by the attest firm - ANSWER-d.
management participation in the client by the attest firm
An example of a self-review threat for CPAs in business is:
a. internal auditor accepts work she previously performed in a different position
b. serving as both the CFO of a company and member of its audit committee
c. owning stock in the company the CPA works for
d. serving as both the CFO of a company and member of the board of directors -
ANSWER-a. internal auditor accepts work she previously performed in a different
position
The tendency for decision-makers to put more weight on information that is
consistent with their initial beliefs or preferences is called the:
a. overconfidence tendency
b. confirmation tendency
c. decision making tendency
d. availability tendency - ANSWER-b. confirmation tendency
AICPA ETHICS/CODE OF PROFESSIONAL
CONDUCT TEST 2025
,In gathering audit evidence, the possibility of overestimating one's abilities to
perform tasks or to make accurate diagnoses may be a factor thereby influencing
which judgment tendency?
a. anchoring
b. confirmation
c. overconfidence
d. availability - ANSWER-c. overconfidence
The growth in consulting services raises questions about which professional
obligation?
a. conflicts of interest
b. objectivity
c. competence
d. confidentiality - ANSWER-a. conflicts of interest
Which of the following is established by the conceptual framework in the AICPA
Code?
a. new rule on when to follow the Dodd-Frank whistle-blower's act
b. rules to assess independence violations apart from those affecting other services
c. legal liability of auditors
AICPA ETHICS/CODE OF PROFESSIONAL
CONDUCT TEST 2025
, d. threats and safeguards approach to assess whether ethics rules have been
violated - ANSWER-d. threats and safeguards approach to assess whether ethics
rules have been violated
Ethics rules in the AICPA Code apply to:
a. licensed accounting firms and certain members of alternative practice structures
b. individual CPAs who are licensed by state boards of accountancy, licensed
accounting firms, and certain members of alternative practice structures
c. individual CPAs who are licensed by state boards of accountancy only
d. individual CPAs who are licensed by state boards of accountancy and
accounting firms - ANSWER-b. individual CPAs who are licensed by state boards
of accountancy, licensed accounting firms, and certain members of alternative
practice structures
Objectivity may be impaired when a CPA prepares a tax return for a client
because:
a. the CPA serves in a tax advocacy position for the client
b. the CPA violates the independence rule
c. the CPA must prepare the tax return solely based on the information provided by
the client
d. the CPA violates the integrity rule - ANSWER-a. the CPA serves in a tax
advocacy position for the client
Which PCAOB rule treats a registered public accounting firm as not independent if
the firm provides tax services to certain members of management who serve in
AICPA ETHICS/CODE OF PROFESSIONAL
CONDUCT TEST 2025
PREP QUESTIONS AND CORRECT VERIFIED
ANSWERS/ AICPA ETHICS/CODE OF
PROFESSIONAL CONDUCT TEST 2025 (NEW!)
To whom does the CPA owe ultimate allegiance in carrying out professional
obligations?
a. stockholders
b. public interest
c. client
d. stakeholders - ANSWER-b. public interest
Which of the following is not a safeguard that can help to mitigate threats to
independence?
a. quality control safeguards created by the audit firm
b. safeguards created by the corporate governance system of the attest client
c. safeguards created by the Sarbanes-Oxley Act
d. safeguards performed by the audit firm that are the responsibility of
management - ANSWER-d. safeguards performed by the audit firm that are the
responsibility of management
Safeguards implemented by the attest client include each of the following except:
AICPA ETHICS/CODE OF PROFESSIONAL
CONDUCT TEST 2025
,a. policies and procedures to address ethical conduct
b. the tone at the top set by executive management
c. proper oversight by client management
d. management participation in the client by the attest firm - ANSWER-d.
management participation in the client by the attest firm
An example of a self-review threat for CPAs in business is:
a. internal auditor accepts work she previously performed in a different position
b. serving as both the CFO of a company and member of its audit committee
c. owning stock in the company the CPA works for
d. serving as both the CFO of a company and member of the board of directors -
ANSWER-a. internal auditor accepts work she previously performed in a different
position
The tendency for decision-makers to put more weight on information that is
consistent with their initial beliefs or preferences is called the:
a. overconfidence tendency
b. confirmation tendency
c. decision making tendency
d. availability tendency - ANSWER-b. confirmation tendency
AICPA ETHICS/CODE OF PROFESSIONAL
CONDUCT TEST 2025
,In gathering audit evidence, the possibility of overestimating one's abilities to
perform tasks or to make accurate diagnoses may be a factor thereby influencing
which judgment tendency?
a. anchoring
b. confirmation
c. overconfidence
d. availability - ANSWER-c. overconfidence
The growth in consulting services raises questions about which professional
obligation?
a. conflicts of interest
b. objectivity
c. competence
d. confidentiality - ANSWER-a. conflicts of interest
Which of the following is established by the conceptual framework in the AICPA
Code?
a. new rule on when to follow the Dodd-Frank whistle-blower's act
b. rules to assess independence violations apart from those affecting other services
c. legal liability of auditors
AICPA ETHICS/CODE OF PROFESSIONAL
CONDUCT TEST 2025
, d. threats and safeguards approach to assess whether ethics rules have been
violated - ANSWER-d. threats and safeguards approach to assess whether ethics
rules have been violated
Ethics rules in the AICPA Code apply to:
a. licensed accounting firms and certain members of alternative practice structures
b. individual CPAs who are licensed by state boards of accountancy, licensed
accounting firms, and certain members of alternative practice structures
c. individual CPAs who are licensed by state boards of accountancy only
d. individual CPAs who are licensed by state boards of accountancy and
accounting firms - ANSWER-b. individual CPAs who are licensed by state boards
of accountancy, licensed accounting firms, and certain members of alternative
practice structures
Objectivity may be impaired when a CPA prepares a tax return for a client
because:
a. the CPA serves in a tax advocacy position for the client
b. the CPA violates the independence rule
c. the CPA must prepare the tax return solely based on the information provided by
the client
d. the CPA violates the integrity rule - ANSWER-a. the CPA serves in a tax
advocacy position for the client
Which PCAOB rule treats a registered public accounting firm as not independent if
the firm provides tax services to certain members of management who serve in
AICPA ETHICS/CODE OF PROFESSIONAL
CONDUCT TEST 2025
