ETHICAL OBLIGATIONS AND DECISION
MAKING IN ACCOUNTING TEXT AND CASES
FINAL PAPER 2026 COMPLETE QUESTIONS
ANSWERS PREMIUM STUDY GUIDE
◉ What is agency theory?
Answer: The conflict that arises when managers act in their own
interests instead of shareholders'.
◉ What is management's responsibility in governance?
Answer: To prepare accurate financial statements and maintain
internal controls.
◉ What is the board's monitoring role?
Answer: To supervise management actions and protect shareholder
interests.
◉ What is the purpose of governance structures?
Answer: To reduce fraud, conflicts of interest, and unethical
behavior.
◉ What is the AICPA Code of Professional Conduct?
, Answer: A framework of ethical standards guiding CPA behavior.
◉ What is the purpose of the AICPA Code?
Answer: To maintain trust in the accounting profession.
◉ What are the six principles of the AICPA Code?
Answer: Responsibilities, public interest, integrity, objectivity and
independence, due care, scope and nature of services.
◉ What does the responsibilities principle require?
Answer: CPAs should exercise sensitive professional and moral
judgment.
◉ What does the public interest principle require?
Answer: CPAs should serve the public and honor the public trust.
◉ What does integrity mean in accounting?
Answer: Honesty and fairness in professional activities.
◉ What does objectivity require?
Answer: Impartiality and freedom from conflicts of interest.
MAKING IN ACCOUNTING TEXT AND CASES
FINAL PAPER 2026 COMPLETE QUESTIONS
ANSWERS PREMIUM STUDY GUIDE
◉ What is agency theory?
Answer: The conflict that arises when managers act in their own
interests instead of shareholders'.
◉ What is management's responsibility in governance?
Answer: To prepare accurate financial statements and maintain
internal controls.
◉ What is the board's monitoring role?
Answer: To supervise management actions and protect shareholder
interests.
◉ What is the purpose of governance structures?
Answer: To reduce fraud, conflicts of interest, and unethical
behavior.
◉ What is the AICPA Code of Professional Conduct?
, Answer: A framework of ethical standards guiding CPA behavior.
◉ What is the purpose of the AICPA Code?
Answer: To maintain trust in the accounting profession.
◉ What are the six principles of the AICPA Code?
Answer: Responsibilities, public interest, integrity, objectivity and
independence, due care, scope and nature of services.
◉ What does the responsibilities principle require?
Answer: CPAs should exercise sensitive professional and moral
judgment.
◉ What does the public interest principle require?
Answer: CPAs should serve the public and honor the public trust.
◉ What does integrity mean in accounting?
Answer: Honesty and fairness in professional activities.
◉ What does objectivity require?
Answer: Impartiality and freedom from conflicts of interest.
