CPA Ethics Exam / AICPA Ethics Rules & CPA
Exam WITH COMPLETE SOLUTION
NEWEST RATED A+ 2026 UPDATED 100%
VERIFIED CORRECT
CPA Ethics Exam: AICPA Ethics Rules – 100 Q&A
Professional Ethics & Conceptual Framework
1. The AICPA Code of Professional Conduct establishes which two sections
of standards?
A) Principles and Ethics
B) Principles and Rules
C) Rules and Interpretations
D) Ethics and Interpretations
B) Principles and Rules
2. The Principles section of the AICPA Code is:
A) Enforceable professional obligations.
B) Legally binding rules for all CPAs.
C) Aspirational guidelines providing the framework for the rules.
D) A summary of state board accountancy laws.
C) Aspirational guidelines providing the framework for the rules.
3. The Conceptual Framework is used when:
A) No specific rule exists for a particular situation.
B) A CPA is defending themselves in a court of law.
C) A specific rule explicitly prohibits an action.
D) Preparing financial statements under GAAP.
A) No specific rule exists for a particular situation.
4. A member who departs from a specific rule by using the Conceptual
Framework must:
A) Get permission from the AICPA Ethics committee first.
B) Justify the departure upon request.
, C) Publicly disclose the departure in the financial statements.
D) Only inform their client.
B) Justify the departure upon request.
5. Which of the following is NOT one of the three categories of threats
defined in the Conceptual Framework?
A) Adverse Interest Threat
B) Self-Review Threat
C) Compliance Threat
D) Familiarity Threat
C) Compliance Threat
Independence
6. Independence is required for which of the following services?
A) Compilation of financial statements.
B) Preparation of financial statements (non-attest).
C) An audit of financial statements.
D) A bookkeeping engagement.
C) An audit of financial statements.
7. A "covered member" for independence purposes includes:
A) Only the partner in charge of the attest engagement.
B) The partner in charge of the attest engagement and their immediate
family.
C) All partners in the office of the lead attest partner.
D) Any individual participating in the attest engagement.
B) The partner in charge of the attest engagement and their
immediate family.
8. A direct financial interest in an attest client is held by:
A) A covered member's cousin.
B) The covered member's dependent child.
C) A firm's health plan that invests in the client.
D) A firm's retirement plan that invests in the client.
B) The covered member's dependent child.
, 9. If a covered member owns a single share of stock in an attest client,
independence is:
A) Impaired.
B) Not impaired if the investment is immaterial.
C) Not impaired if it is held in a blind trust.
D) Not impaired for non-public companies.
A) Impaired.
10.A loan from a financial institution attest client to a covered member is
permitted if:
A) The loan is fully collateralized by a car.
B) The loan is made under the lender's normal lending procedures.
C) The loan is for $10,000.
D) The loan is from a credit union.
B) The loan is made under the lender's normal lending procedures.
11.A covered member's independence is impaired if their firm provides
which service to a private company attest client?
A) Preparation of tax returns.
B) Bookkeeping services.
C) Internal audit outsourcing.
D) Payroll processing.
C) Internal audit outsourcing.
12.When performing an audit, a CPA firm may NOT provide which service
to a public company attest client?
A) Tax compliance.
B) Bookkeeping.
C) IT system design and implementation.
D) Forensic accounting.
B) Bookkeeping.
13.The "cooling-off period" for a member of the audit engagement team to
join a public company attest client as a key financial reporting employee
is:
A) 6 months.
Exam WITH COMPLETE SOLUTION
NEWEST RATED A+ 2026 UPDATED 100%
VERIFIED CORRECT
CPA Ethics Exam: AICPA Ethics Rules – 100 Q&A
Professional Ethics & Conceptual Framework
1. The AICPA Code of Professional Conduct establishes which two sections
of standards?
A) Principles and Ethics
B) Principles and Rules
C) Rules and Interpretations
D) Ethics and Interpretations
B) Principles and Rules
2. The Principles section of the AICPA Code is:
A) Enforceable professional obligations.
B) Legally binding rules for all CPAs.
C) Aspirational guidelines providing the framework for the rules.
D) A summary of state board accountancy laws.
C) Aspirational guidelines providing the framework for the rules.
3. The Conceptual Framework is used when:
A) No specific rule exists for a particular situation.
B) A CPA is defending themselves in a court of law.
C) A specific rule explicitly prohibits an action.
D) Preparing financial statements under GAAP.
A) No specific rule exists for a particular situation.
4. A member who departs from a specific rule by using the Conceptual
Framework must:
A) Get permission from the AICPA Ethics committee first.
B) Justify the departure upon request.
, C) Publicly disclose the departure in the financial statements.
D) Only inform their client.
B) Justify the departure upon request.
5. Which of the following is NOT one of the three categories of threats
defined in the Conceptual Framework?
A) Adverse Interest Threat
B) Self-Review Threat
C) Compliance Threat
D) Familiarity Threat
C) Compliance Threat
Independence
6. Independence is required for which of the following services?
A) Compilation of financial statements.
B) Preparation of financial statements (non-attest).
C) An audit of financial statements.
D) A bookkeeping engagement.
C) An audit of financial statements.
7. A "covered member" for independence purposes includes:
A) Only the partner in charge of the attest engagement.
B) The partner in charge of the attest engagement and their immediate
family.
C) All partners in the office of the lead attest partner.
D) Any individual participating in the attest engagement.
B) The partner in charge of the attest engagement and their
immediate family.
8. A direct financial interest in an attest client is held by:
A) A covered member's cousin.
B) The covered member's dependent child.
C) A firm's health plan that invests in the client.
D) A firm's retirement plan that invests in the client.
B) The covered member's dependent child.
, 9. If a covered member owns a single share of stock in an attest client,
independence is:
A) Impaired.
B) Not impaired if the investment is immaterial.
C) Not impaired if it is held in a blind trust.
D) Not impaired for non-public companies.
A) Impaired.
10.A loan from a financial institution attest client to a covered member is
permitted if:
A) The loan is fully collateralized by a car.
B) The loan is made under the lender's normal lending procedures.
C) The loan is for $10,000.
D) The loan is from a credit union.
B) The loan is made under the lender's normal lending procedures.
11.A covered member's independence is impaired if their firm provides
which service to a private company attest client?
A) Preparation of tax returns.
B) Bookkeeping services.
C) Internal audit outsourcing.
D) Payroll processing.
C) Internal audit outsourcing.
12.When performing an audit, a CPA firm may NOT provide which service
to a public company attest client?
A) Tax compliance.
B) Bookkeeping.
C) IT system design and implementation.
D) Forensic accounting.
B) Bookkeeping.
13.The "cooling-off period" for a member of the audit engagement team to
join a public company attest client as a key financial reporting employee
is:
A) 6 months.
