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.
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.
