ACCT 4553 Ethics Final AICPA UPDATED ACTUAL Questions and CORRECT
Answers
1. Which step in the decision-making model is character- - Consider the effect on
ized by putting yourself in the shoes of a person that Stakeholders
the company's policies could impact
2. Which step in the decision-making model is character- - Consider your comfort lev-
ized by asking the question, "if you had to discuss your el
decision in public, would you be concerned about how
it reflects on your ethics?
3. CPAs must follow the rules and standards promulgat- - Your State CPA licensing
ed by which body? (Hint: Whose rules would a CPA be board
especially motivated to follow?)
4. Who establishes rules with respect to auditing and - PCAOB
other attestation engagements, quality control of au-
dits, and independence of public auditors?
5. If each entity tells you, a publicly traded company, - The most restrictive re-
a different set of independence rules, who do you quirements
follow first?
6. As a professional CPA, I have the greatest responsibil- - The publics' interest
ity to serve:
7. Which of the following is a specific rule of integrity and - Be free from conflicts and
objectivity? interest
8. I also must maintain my objectivity, be free of conflicts Care
of interest, and discharge all my responsibilities with
due
9. - Independence, Objectivity
, As a CPA, I should especially maintain and
when carrying out public duties as it relates to
conflicts of interest
10. Which of the following is not a member of "private - External Audit
accounting"?
11. Which factor must be in place for you to perform - You have determined that
services in light of a potential conflict of interest? your threats to objectivity
are at an acceptable level
12. What approach must AICPA members use to evaluate - Threats and Safeguards
a matter that the code does not address?
13. The threat that you will not act with objectivity be- - Adverse interest threat
cause your interests are opposed to your clients de-
scribes which of the following?
14. Which of the following is not a possible threat related - Favoritism
to gifts and entertainment?
15. Which of these is an example of a "quid pro quo" - A client buying an ap-
situation? ple watch for an auditor in
exchange for a clean audit
opinion
16. Suppose a statue exists in your state that allows you - Yes, these records should
to place a lien on client records in the event of unpaid be provided upon request
fees. Given these facts are you obligated to return the
client's records?
17. As a part of your work, you prepared several sched- - No, these are not
ules relating to the client's investment trading activity. considered client-provided
He now says he needs those schedules so that he can records
Answers
1. Which step in the decision-making model is character- - Consider the effect on
ized by putting yourself in the shoes of a person that Stakeholders
the company's policies could impact
2. Which step in the decision-making model is character- - Consider your comfort lev-
ized by asking the question, "if you had to discuss your el
decision in public, would you be concerned about how
it reflects on your ethics?
3. CPAs must follow the rules and standards promulgat- - Your State CPA licensing
ed by which body? (Hint: Whose rules would a CPA be board
especially motivated to follow?)
4. Who establishes rules with respect to auditing and - PCAOB
other attestation engagements, quality control of au-
dits, and independence of public auditors?
5. If each entity tells you, a publicly traded company, - The most restrictive re-
a different set of independence rules, who do you quirements
follow first?
6. As a professional CPA, I have the greatest responsibil- - The publics' interest
ity to serve:
7. Which of the following is a specific rule of integrity and - Be free from conflicts and
objectivity? interest
8. I also must maintain my objectivity, be free of conflicts Care
of interest, and discharge all my responsibilities with
due
9. - Independence, Objectivity
, As a CPA, I should especially maintain and
when carrying out public duties as it relates to
conflicts of interest
10. Which of the following is not a member of "private - External Audit
accounting"?
11. Which factor must be in place for you to perform - You have determined that
services in light of a potential conflict of interest? your threats to objectivity
are at an acceptable level
12. What approach must AICPA members use to evaluate - Threats and Safeguards
a matter that the code does not address?
13. The threat that you will not act with objectivity be- - Adverse interest threat
cause your interests are opposed to your clients de-
scribes which of the following?
14. Which of the following is not a possible threat related - Favoritism
to gifts and entertainment?
15. Which of these is an example of a "quid pro quo" - A client buying an ap-
situation? ple watch for an auditor in
exchange for a clean audit
opinion
16. Suppose a statue exists in your state that allows you - Yes, these records should
to place a lien on client records in the event of unpaid be provided upon request
fees. Given these facts are you obligated to return the
client's records?
17. As a part of your work, you prepared several sched- - No, these are not
ules relating to the client's investment trading activity. considered client-provided
He now says he needs those schedules so that he can records
