Ethics Final

Ethics Final – AICPA Questions And
Answers


Generally, vethical vdilemmas vare vnot vroutine. vTherefore, vthere vis vno vway vthat van vindividual vcan vbe
vprepared vor vinformed vfor va vproblem vahead vof vtime. v- vAnswer v- vFalse, vIt vis vimportant vthat vyou vdo vyour

vhomework vand vunderstand vhow vto vprotect vyourself vand vyour vemployer. vThis vwill vgive vyou va v"head's

vup" vwhen vyou vface vpotential vethical vdilemmas



PCAOB vset vauditing, vquality vcontrol, vethics, vindependence vand vother vstandards vrelating vto vthe
vpreparation vof vaudit vreports. v- vAnswer v- vFalse, vOnly vfor vIssuers



The vAICPA vbylaws vrequire vthat vmembers vadhere vto vthe vrules vin vthe vCode. v- vAnswer v- vTrue

The vAmerican vInstitute vof vCertified vPublic vAccountants vhas vbeen vthe vprimary vethical vrules vfor vinternal
vauditors. v- vAnswer v- vFalse



Members vemployed vby vothers vto vprepare vfinancial vstatements vor vto vperform vauditing vmust vadhere vto
vthe vobjectivity vand vindependence vprinciple vin vthe vAICPA vCode vof vConduct v- vAnswer v- vFalse, vThey vare

vcharged vwith vthe vsame vresponsibility vfor vobjectivity vas vmembers vin vpublic vpractice



The vAICPA vCode vof vProfessional vConduct vderives vits vauthority vfrom vspecific vfederal vlegislation. v-
vAnswer v- vFalse, vThe vAICPA vCode vof vProfessional vConduct vderives vits vauthority vfrom vthe vBylaws vof vthe

vAICPA.



An vethical vdilemma vis vdefined vas va vsituation vwhere vtwo vor vmore v"right" vvalues vare vin vconflict v- vAnswer
v- vtrue



Members vwould vbe vviolating vthe vIntegrity vprinciple vif vthey vhave vinadvertent verrors vand vhave vhonest
vdifferences vof vopinion vwhile vperforming vtheir vduties. v- vAnswer v- vFalse, vIntegrity vcan vaccommodate vthe

vinadvertent verror vand vhonest vdifference vof vopinion; vit vcannot vaccommodate vdeceit vor vsubordination

vof vprinciples.



AICPA vInterpretations vlimit vthe vscope vand vapplication vof vthe vrules. v- vAnswer v- vFalse, vThe
vinterpretations vof vthe vrules vof vconduct vprovide vguidelines vabout vthe vscope vand vapplication vof vthe

vrules vbut vare vnot vintended vto vlimit vsuch vscope vor vapplication



The vAICPA vCode vof vProfessional vConduct vprovides vpractical vguidance vto vonly vmembers vin vpublic
vpractice v- vAnswer v- vFalse, vThe vAICPA vCode vprovides vpractice vguidance vfor vall vmembers.



Under vthe vRules vof vProfessional vConduct vpromulgated vunder vthe vTexas vPublic vAccountancy vAct, vall vof
vthe vrules vof vprofessional vconduct vshall vapply vto vand vmust vbe vobserved vby va vcertificate vor vregistration

vholder vengaged vin vthe vclient vpractice vof vpublic vaccountancy. v- vAnswer v- vTrue, vCorrect vunder vRule

v501.53(a), vApplicability vof vRules vof vProfessional vConduct.

, Integrity vas vdefined vin vthe vAICPA vCode vof vConduct vis van velement vof vcharacter vfundamental vto
vprofessional vrecognition v- vAnswer v- vTrue



The vcharacteristics vcommon vto vall vprofession vinclude vexistence vof va vcomplex vbody vof vknowledge vand
vacknowledgement vof va vresponsibility vto vserve vthe vclient. v- vAnswer v- vFalse, vresponsibility vto vserve vthe

vpublic



Membership vin vthe vAICPA vis vvoluntary, vbut vby vaccepting vmembership, va vCPA vassumes van vobligation vof
vself-discipline vand vagrees vto vadhere vto vthe vCode. v- vAnswer v- vTrue



The vAICPA vCode vof vProfessional vConduct vbegins vwith va vpreface vthat vapplies vto vall vmembers. v- vAnswer
v- vTrue



The vResponsibilities vprinciple vof vthe vAICPA vCode vof vConduct vrequires vthat vservice vand vpublic vtrust vnot
vbe vsubordinated vto vpersonal vgain vand vadvantage. v- vAnswer v- vFalse, vThis vis vintegrity



The vAICPA vCode vof vProfessional vConduct vprovides vassurance vto vclients vand vto vthe vpublic vthat vthe
vprofessional vintends vto vmaintain vhigh vstandards. v- vAnswer v- vTrue



PCAOB vwas vcreated vby vthe vSarbanes-Oxley vAct vof v2002. v- vAnswer v- vTrue

CPAs vwho vpractice vin vpublic vaccounting vare vrequired vto vbe vmembers vof vAICPA. v- vAnswer v- vFalse,
vmembership vin vthe vAICPA vis vvoluntary



The vAICPA vRules vof vConduct vapply vto vall vprofessional vservices vperformed. v- vAnswer v- vFalse, vexcept
vwhen vworking vof vthe vrule vindicates votherwise



Integrity vis vthe vquality vfrom vwhich vpublic vtrust vderives vand vthe vbenchmark vagainst vwhich va vmember
vmust vultimately vtest vall vdecisions. v- vAnswer v- vTrue



Objectivity vis vmeasured vin vterms vof vwhat vis vright vand vjust. v- vAnswer v- vFalse, vThis vis vintegrity

Providing vtax vservices vto vboth vparties vinvolved vin va vdivorce vproceeding vwould vnot vbe vviewed vas
vimpairing va vCPA's vobjectivity. v- vAnswer v- vFalse, vThis vwould vbe vconsidered va vconflict vof vinterest



CPAs vemployed vby vothers vto vprepare vfinancial vstatements vor vto vperform vinternal vauditing, vtax, vor
vconsulting vservices vare vcharged vwith vthe vsame vresponsibility vfor vobjectivity vas vthose vin vpublic

vpractice. v- vAnswer v- vTrue



A vconflict vof vinterest vexists vif va vmember vin vpublic vpractice vprovides vservices vto va vcompany vthat vis va
vmajor vcompetitor vof va vcompany vin vwhich vthe vCPA vhas va vposition vof vinfluence. v- vAnswer v- vTrue



A vconflict vof vinterest vdoes vnot vexist vwhen va vmember vin vpublic vpractice vprovides vtaxes vservices vto va
vdivorced vcouple v- vAnswer v- vFalse, vThe vconflict vof vinterest vexists vif vthe vcouple vwere vinvolved vin va

vdivorce vproceeding



A vconflict vof vinterest vdoes vnot vexist vwhen va vmember vin vpublic vpractice vrefers va vclient vto va vservice
vbureau vin vwhich vthe vmember vor vpartners vin vthe vmember's vfirm vhold vmaterial vfinancial vinterest. v-

vAnswer v- vFalse, vThis vcreates van vadverse vinterest vand va vself-interest vwhich vcreates va vtreat vto vthe

vmember's vcompliance vwith vthe vIntegrity vand vObjectivity vRule.