ALL AICPA Ethics Exam [ACTUAL
EXAM] LATEST VERSION
[QUESTIONS AND ANSWERS] WITH
PRACTICE EXAM DETAILED AND
VERIFIED FOR GUARANTEED PASS-
LATEST UPDATE 2025 GRADED A
Ethical Decision Making Model - CORRECT ANSWER helps you actively work
through gray area and choose the best possible solution to an ethical dilema
Step 1: Recognize the ethical issue
Step 2: Gather the critical facts
Step 3: Identify the stakeholders
Step 4: Consider your alternatives
Step 5: Consider the effect on stakeholders
Step 6: Consider your comfort level
Step 7: Consider rules, regulations and laws
Step 8: Make a decision
Step 9: Document your efforts
Step 10: Evaluate the outcome
Step 1 - CORRECT ANSWER Recognize the ethical issue
Step 2 - CORRECT ANSWER Gather the critical facts
-you may not have all the facts, but you need the key ones (material)
Step 3 - CORRECT ANSWER Identify the stakeholders
-who is affected by your decisions/actions
-consider as many as possible
Step 4 - CORRECT ANSWER Consider your alternatives
-approaches you could take to address this matter and resolve the ethical conflict
,Step 5 - CORRECT ANSWER Consider the effect on stakeholders
-effect of each alternative
Step 6 - CORRECT ANSWER Consider your comfort level
-how comfortable are you with each option
-how would you feel if you have to discuss your decision in public
Step 7 - CORRECT ANSWER Consider rules, regulations, and laws
-rules set by AICPA, state accountancy board, state CPA society
Step 8 - CORRECT ANSWER Make a decision
-take the time you need
-discuss with colleague, gain perspectives, counsel, don't be hasty
Step 9 - CORRECT ANSWER Document your efforts
-your understanding of the facts
-who you consulted with and their professional affiliations
-your decision
Step 10 - CORRECT ANSWER Evaluate the outcome
-would you have done anything differently
Professional & Regulatory Bodies - CORRECT ANSWER set ethics standards and
rules for members of the accounting profession
State CPA licensing boards
AICPA
SEC
PCABO
IFAC
IRS
GAO
DOL
others
State CPA Licensing Boards - CORRECT ANSWER issues CPA licesnes and
oversee ethical conduct of jurisdiction
,AICPA - CORRECT ANSWER American Institute of Certified Public Accountants
national professional organization for all CPAs; work with state CPA societies
-PEEC: Professional Ethics Executive Committee promulgates and enforces ethics and
independence rules that apply to all members
SEC - CORRECT ANSWER Securities and Exchange Commission
federal agency
establishes and enforces accounting and auditing policies
PCAOB - CORRECT ANSWER Public Company Accounting Oversight Board
establishes auditing, attestation, quality control, ethics and independence standards for
public company auditors
IFAC - CORRECT ANSWER International Federation of Accountants
develop standards for auditing, education, ethics, and public sector financial reporting in
the accounting profession globally
promotes good ethical practices
IRS - CORRECT ANSWER Internal Revenue Service
government agency
authorizes the Secretary of the Treasury to set rules and regulations necessary to
enforce the UT tax laws
Treasury Dept Circular 230 governs federal tax practice before the IRS
IRS Office of Professional Responsibility (OPR) enforces these regulations
GAO - CORRECT ANSWER US Government Accountability Office
issues ethics and independence rules that apply to engagements performed under
GAGAS
DOL - CORRECT ANSWER Department of Labor
interpretive bulletin on independence
Code of Conduct - CORRECT ANSWER -assume responsibilities above and
beyond those required by law
-act honorably, even at the sacrifice of personal advantage
, CPAs must follow the rules and standards promulgated by which bodies - CORRECT
ANSWER Their state CPA licensing board
3 Areas of AICPA's PEEC - CORRECT ANSWER members in public practice
members in business
members in neither category (retired or between jobs)
______________________________________________________________________
________
Membership in AICPA is voluntary - member assumes obligations
Profession has responsibility to the public, to clients, and to colleagues
Guide members in the performance of their professional responsibilities
American Institute of Certified Public Accountants Professional Ethics Executive
Committee (PEEC) - CORRECT ANSWER -maintains the AICPA's Code of
Professional Conduct
-framework approach: provides a methodology for assessing facts and circumstances
not contemplated under the rules
______________________________________________________________________
_________
-3 frameworks
2 for members in public practice (independence and all other areas)
1 for members in business
______________________________________________________________________
________
Preface
Part 1 for members in public practice (independence and all other areas)
Part 2 for member in business
Part 3 for all other members
Glossary
6 Principles of Professional Conduct - CORRECT ANSWER Responsibilities
The Public Interest
Integrity
Objectivity and Independence
Due Care
Scope and Nature of Services
1. Responsibilities - CORRECT ANSWER In carrying out your professional
responsibilities, you should exercise sensitive professional and moral judgment
2. The Public Interest - CORRECT ANSWER You should act in a way that will
serve the public interest, honor the public trust, and demonstrate your commitment to
professionalism
EXAM] LATEST VERSION
[QUESTIONS AND ANSWERS] WITH
PRACTICE EXAM DETAILED AND
VERIFIED FOR GUARANTEED PASS-
LATEST UPDATE 2025 GRADED A
Ethical Decision Making Model - CORRECT ANSWER helps you actively work
through gray area and choose the best possible solution to an ethical dilema
Step 1: Recognize the ethical issue
Step 2: Gather the critical facts
Step 3: Identify the stakeholders
Step 4: Consider your alternatives
Step 5: Consider the effect on stakeholders
Step 6: Consider your comfort level
Step 7: Consider rules, regulations and laws
Step 8: Make a decision
Step 9: Document your efforts
Step 10: Evaluate the outcome
Step 1 - CORRECT ANSWER Recognize the ethical issue
Step 2 - CORRECT ANSWER Gather the critical facts
-you may not have all the facts, but you need the key ones (material)
Step 3 - CORRECT ANSWER Identify the stakeholders
-who is affected by your decisions/actions
-consider as many as possible
Step 4 - CORRECT ANSWER Consider your alternatives
-approaches you could take to address this matter and resolve the ethical conflict
,Step 5 - CORRECT ANSWER Consider the effect on stakeholders
-effect of each alternative
Step 6 - CORRECT ANSWER Consider your comfort level
-how comfortable are you with each option
-how would you feel if you have to discuss your decision in public
Step 7 - CORRECT ANSWER Consider rules, regulations, and laws
-rules set by AICPA, state accountancy board, state CPA society
Step 8 - CORRECT ANSWER Make a decision
-take the time you need
-discuss with colleague, gain perspectives, counsel, don't be hasty
Step 9 - CORRECT ANSWER Document your efforts
-your understanding of the facts
-who you consulted with and their professional affiliations
-your decision
Step 10 - CORRECT ANSWER Evaluate the outcome
-would you have done anything differently
Professional & Regulatory Bodies - CORRECT ANSWER set ethics standards and
rules for members of the accounting profession
State CPA licensing boards
AICPA
SEC
PCABO
IFAC
IRS
GAO
DOL
others
State CPA Licensing Boards - CORRECT ANSWER issues CPA licesnes and
oversee ethical conduct of jurisdiction
,AICPA - CORRECT ANSWER American Institute of Certified Public Accountants
national professional organization for all CPAs; work with state CPA societies
-PEEC: Professional Ethics Executive Committee promulgates and enforces ethics and
independence rules that apply to all members
SEC - CORRECT ANSWER Securities and Exchange Commission
federal agency
establishes and enforces accounting and auditing policies
PCAOB - CORRECT ANSWER Public Company Accounting Oversight Board
establishes auditing, attestation, quality control, ethics and independence standards for
public company auditors
IFAC - CORRECT ANSWER International Federation of Accountants
develop standards for auditing, education, ethics, and public sector financial reporting in
the accounting profession globally
promotes good ethical practices
IRS - CORRECT ANSWER Internal Revenue Service
government agency
authorizes the Secretary of the Treasury to set rules and regulations necessary to
enforce the UT tax laws
Treasury Dept Circular 230 governs federal tax practice before the IRS
IRS Office of Professional Responsibility (OPR) enforces these regulations
GAO - CORRECT ANSWER US Government Accountability Office
issues ethics and independence rules that apply to engagements performed under
GAGAS
DOL - CORRECT ANSWER Department of Labor
interpretive bulletin on independence
Code of Conduct - CORRECT ANSWER -assume responsibilities above and
beyond those required by law
-act honorably, even at the sacrifice of personal advantage
, CPAs must follow the rules and standards promulgated by which bodies - CORRECT
ANSWER Their state CPA licensing board
3 Areas of AICPA's PEEC - CORRECT ANSWER members in public practice
members in business
members in neither category (retired or between jobs)
______________________________________________________________________
________
Membership in AICPA is voluntary - member assumes obligations
Profession has responsibility to the public, to clients, and to colleagues
Guide members in the performance of their professional responsibilities
American Institute of Certified Public Accountants Professional Ethics Executive
Committee (PEEC) - CORRECT ANSWER -maintains the AICPA's Code of
Professional Conduct
-framework approach: provides a methodology for assessing facts and circumstances
not contemplated under the rules
______________________________________________________________________
_________
-3 frameworks
2 for members in public practice (independence and all other areas)
1 for members in business
______________________________________________________________________
________
Preface
Part 1 for members in public practice (independence and all other areas)
Part 2 for member in business
Part 3 for all other members
Glossary
6 Principles of Professional Conduct - CORRECT ANSWER Responsibilities
The Public Interest
Integrity
Objectivity and Independence
Due Care
Scope and Nature of Services
1. Responsibilities - CORRECT ANSWER In carrying out your professional
responsibilities, you should exercise sensitive professional and moral judgment
2. The Public Interest - CORRECT ANSWER You should act in a way that will
serve the public interest, honor the public trust, and demonstrate your commitment to
professionalism
