CPA ETHICS EXAM /AICPA ACTUAL
EXAM Questions and Answers
1. A member of the AICPA must:
a. Undertake only those professional services that the member or
member's firm can reasonably expect to be completed with
professional competence.
b. Exercise due professional care in the performance of professional
services.
c. Adequately plan and supervise the performance of professional
services.
d. All of the above. - ANSWER D
2. T/F: The enforcement division of TSBPA may take legal action against a
CPA that fails to follow the Board's rules. - ANSWER True
3. What's new about the Online Code of Professional Conduct by the AICPA?
a. New restructured ethics code effective Dec 15, 2014
b. New section on changes of the code within the last 12 months (See
0.600)
c. Appendix C Revision History Table (Changes after Jun 1, 2014) and
D: Mapping Document (from new to old code)
d. All the above - ANSWER D
4. What established accounting principles must be followed and are
enforceable under the Code of Professional Conduct as designated by the
AICPA?
A. Generally Accepted Accounting Principles (GAAP)
B. Financial Reporting Framework for Small- and Medium-Sized
Entities (FRF)
C. International Accounting Standards (IAS)
D. International Financial Reporting Standards (IFRS) -
ANSWER A
1
,5. T/F: You'll have 24 months to pass all four CPA Exam sections with a
minimum score of 70. Is it true or false? - ANSWER False, 18 months with
scores of 75+
6. Under the newly adopted licensure model starting in 2024, a candidate that
successfully passes all 4 parts of the CPA exam will have a designation
indicating a specialization in which of the following:
A. Tax Compliance and Planning
B. Business Reporting and Analysis
C. Information Systems and Controls
D. No designation indicating a specialization - ANSWER D
7. A CPA in public practice ______ avoid operating under a code of
professional ethics by choosing not to join either the AICPA or any state
CPA society.
A. may
B. may not
C. can
D. probably - ANSWER B
8. Which of the sections will be a part of the new CPA evolution to begin in
2024?
A. Tax compliance and planning.
B. Business reporting and analysis.
C. Information systems and controls.
D. All of the above - ANSWER D
9. What is NOT a positive way to maintain a quality relationship with a client?
a. Have written fee agreements, with clearly defined terms (i.e. billing)
and, ifneeded, provide cost estimates.
b. Complete work past agreed upon deadlines.
c. Use appropriate phone protocol to maintain confidentiality with
clients.
d. Monitor quality of all work, including drafts as well as client status
reports. - ANSWER B
10.Which AICPA Conduct rule applies only to members in the practice of
public accounting?
a) General Standards (201)
2
, b) Accounting Principles (203)
c) Independence (101)
d) Compliance with Standards (202) - ANSWER C
11.Which of the following are not example of stakeholders?
A.Employees
B. Customers
C. Suppliers
D. Borrowers
E. All above could be stakeholders - ANSWER E
12.According to the AICPA Code of Professional Conduct, Rule 101-
Independence, an audit requires that an individual perform his or her
services with integrity and objectivity. There must be reasonable assurance
that this is being done during the Page 4 of 5 engagement. What must an
accountant do to be in compliance with the generally accepted auditing
standards?
a. Be independent in fact.
b. Be independent in appearance.
c. Both.
d. Neither - ANSWER C
13.To whom does the AICPA Code of Professional Conduct apply:
a. Members in Public practice
b. Members in Industry
c. Members in Government
d. Members in Education
e. All of the above - ANSWER E
14.T/F: According to AICPA Code of Professional Conduct, a CPA may
receive a contingent fee for performing an audit of a financial statement? -
ANSWER False
15.AICPA members should act in a way that will:
a. Serve the public interest
b. Honor the public trust
c. Demonstrate commitment to professionalism
d. All of the above
e. None of the above. - ANSWER D
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, 16.Regarding the fees of registered independent accounting firms on a audit
engagement the following is true:
A. The firm may charge a client a commission based on recovery
received due to finding an issue on the financials.
B. The firm may charge a flat fee for all work.
C. The firm may charge a fee based on the number of errors it
find in the clients financials.
D. The firm can receive commissions from third parties for work
performed on a client. - ANSWER B
17.What is a positive way to maintain a quality relationship with a client?
a. Have written fee agreements, with clearly defined terms (i.e. billing)
and, if needed, provide cost estimates.
b. Complete work at agreed upon deadlines.
c. Use appropriate phone protocol to maintain confidentiality with
clients.
d. Monitor quality of all work, including drafts as well as client status
reports.
e. All of the above. - ANSWER E
18.Which of the following organizations licenses CPAs:
a. AICPA.
b. Texas Society of CPAs.
c. Texas State Board of Public Accountancy.
d. All of the above.
e. None of the above. - ANSWER C
19.What is the primary purpose of the AICPA Code of Professional Conduct?
A) To provide guidelines for how to prepare financial
statements.
B) To ensure that auditors maintain independence and
objectivity.
C) To establish requirements for the education and
certification of auditors.
D) To set rules for the reporting of audit findings to
clients. - ANSWER B
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EXAM Questions and Answers
1. A member of the AICPA must:
a. Undertake only those professional services that the member or
member's firm can reasonably expect to be completed with
professional competence.
b. Exercise due professional care in the performance of professional
services.
c. Adequately plan and supervise the performance of professional
services.
d. All of the above. - ANSWER D
2. T/F: The enforcement division of TSBPA may take legal action against a
CPA that fails to follow the Board's rules. - ANSWER True
3. What's new about the Online Code of Professional Conduct by the AICPA?
a. New restructured ethics code effective Dec 15, 2014
b. New section on changes of the code within the last 12 months (See
0.600)
c. Appendix C Revision History Table (Changes after Jun 1, 2014) and
D: Mapping Document (from new to old code)
d. All the above - ANSWER D
4. What established accounting principles must be followed and are
enforceable under the Code of Professional Conduct as designated by the
AICPA?
A. Generally Accepted Accounting Principles (GAAP)
B. Financial Reporting Framework for Small- and Medium-Sized
Entities (FRF)
C. International Accounting Standards (IAS)
D. International Financial Reporting Standards (IFRS) -
ANSWER A
1
,5. T/F: You'll have 24 months to pass all four CPA Exam sections with a
minimum score of 70. Is it true or false? - ANSWER False, 18 months with
scores of 75+
6. Under the newly adopted licensure model starting in 2024, a candidate that
successfully passes all 4 parts of the CPA exam will have a designation
indicating a specialization in which of the following:
A. Tax Compliance and Planning
B. Business Reporting and Analysis
C. Information Systems and Controls
D. No designation indicating a specialization - ANSWER D
7. A CPA in public practice ______ avoid operating under a code of
professional ethics by choosing not to join either the AICPA or any state
CPA society.
A. may
B. may not
C. can
D. probably - ANSWER B
8. Which of the sections will be a part of the new CPA evolution to begin in
2024?
A. Tax compliance and planning.
B. Business reporting and analysis.
C. Information systems and controls.
D. All of the above - ANSWER D
9. What is NOT a positive way to maintain a quality relationship with a client?
a. Have written fee agreements, with clearly defined terms (i.e. billing)
and, ifneeded, provide cost estimates.
b. Complete work past agreed upon deadlines.
c. Use appropriate phone protocol to maintain confidentiality with
clients.
d. Monitor quality of all work, including drafts as well as client status
reports. - ANSWER B
10.Which AICPA Conduct rule applies only to members in the practice of
public accounting?
a) General Standards (201)
2
, b) Accounting Principles (203)
c) Independence (101)
d) Compliance with Standards (202) - ANSWER C
11.Which of the following are not example of stakeholders?
A.Employees
B. Customers
C. Suppliers
D. Borrowers
E. All above could be stakeholders - ANSWER E
12.According to the AICPA Code of Professional Conduct, Rule 101-
Independence, an audit requires that an individual perform his or her
services with integrity and objectivity. There must be reasonable assurance
that this is being done during the Page 4 of 5 engagement. What must an
accountant do to be in compliance with the generally accepted auditing
standards?
a. Be independent in fact.
b. Be independent in appearance.
c. Both.
d. Neither - ANSWER C
13.To whom does the AICPA Code of Professional Conduct apply:
a. Members in Public practice
b. Members in Industry
c. Members in Government
d. Members in Education
e. All of the above - ANSWER E
14.T/F: According to AICPA Code of Professional Conduct, a CPA may
receive a contingent fee for performing an audit of a financial statement? -
ANSWER False
15.AICPA members should act in a way that will:
a. Serve the public interest
b. Honor the public trust
c. Demonstrate commitment to professionalism
d. All of the above
e. None of the above. - ANSWER D
3
, 16.Regarding the fees of registered independent accounting firms on a audit
engagement the following is true:
A. The firm may charge a client a commission based on recovery
received due to finding an issue on the financials.
B. The firm may charge a flat fee for all work.
C. The firm may charge a fee based on the number of errors it
find in the clients financials.
D. The firm can receive commissions from third parties for work
performed on a client. - ANSWER B
17.What is a positive way to maintain a quality relationship with a client?
a. Have written fee agreements, with clearly defined terms (i.e. billing)
and, if needed, provide cost estimates.
b. Complete work at agreed upon deadlines.
c. Use appropriate phone protocol to maintain confidentiality with
clients.
d. Monitor quality of all work, including drafts as well as client status
reports.
e. All of the above. - ANSWER E
18.Which of the following organizations licenses CPAs:
a. AICPA.
b. Texas Society of CPAs.
c. Texas State Board of Public Accountancy.
d. All of the above.
e. None of the above. - ANSWER C
19.What is the primary purpose of the AICPA Code of Professional Conduct?
A) To provide guidelines for how to prepare financial
statements.
B) To ensure that auditors maintain independence and
objectivity.
C) To establish requirements for the education and
certification of auditors.
D) To set rules for the reporting of audit findings to
clients. - ANSWER B
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