ACCT 4553 FINAL EXAM UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
Question:
Which step in the decision-making model is characterized by asking the
question, "are these options consistent with applicable pro-fessional ethics
rules, regulations, and laws?"
Answer:
Consider rules, regulations, and laws
Question:
Which step in the decision-making model is characterized by asking the
question, "if you had to discuss your decision in public, would you be
concerned about how it reflects on your ethics?"
Answer:
Consider your comfort level
Question:
CPAs specifically need to follow the rules and standards promulgated by
which body? (Hint: the licensing organization)
Answer:
Your State Board of Public Accounting
Question:
Who establishes rules with respect to auditing and other attestation
engagements, quality control of audits, and independence of public company
auditors?
Answer:
PCAOB
Question:
If you are working on the audit of a publicly-traded company and each
organization tell you a different set of independence rules, who do you follow
first?
Answer:
The most restrictive requirements
Question:
As a professional CPA, I have the greatest re-sponsibility to:
Answer:
Serve the public's interest by performing responsibilities with objectivity and
integrity
Question:
Which of the following is a specific rule of the objectivity and independence
principle?
Answer:
Be free from conflicts of interest
, Question:
What is the main reason that the Integrity Principle is fundamental to the
account profession?
Answer:
Integrity is key to maintaining the public's trust
Question:
Under the objectivity and independence principle, accountants providing
attestation services should be
Answer:
Independent in fact and appearance
Question:
Which of the following is not a member of "private accounting?"
Answer:
External auditor
Question:
Which factor must be in place for you to perform services in light of a
potential conflict of interest?
Answer:
You have determined that your threats to objectivity are at an acceptable level
Question:
What approach must AICPA members use to evaluate a matter that the code
does not?
Answer:
Threats and Safeguards
Question:
The threat that you could benefit, financially or otherwise, from an interest in,
or relationship with your client or persons associated with your client
describes which of the following?
Answer:
Self-Interest Threat
Question:
Which of the following is not a possible threat related to gifts and
entertainment?
Answer:
Adverse Interest Threat
Question:
Which of these is an example of a "quid pro quo" situation?
Answer:
A client giving an auditor a free product in exchange for a clean audit opinion
Question:
Quid Pro Quo
Answer:
"This for that"
AND CORRECT ANSWERS
Question:
Which step in the decision-making model is characterized by asking the
question, "are these options consistent with applicable pro-fessional ethics
rules, regulations, and laws?"
Answer:
Consider rules, regulations, and laws
Question:
Which step in the decision-making model is characterized by asking the
question, "if you had to discuss your decision in public, would you be
concerned about how it reflects on your ethics?"
Answer:
Consider your comfort level
Question:
CPAs specifically need to follow the rules and standards promulgated by
which body? (Hint: the licensing organization)
Answer:
Your State Board of Public Accounting
Question:
Who establishes rules with respect to auditing and other attestation
engagements, quality control of audits, and independence of public company
auditors?
Answer:
PCAOB
Question:
If you are working on the audit of a publicly-traded company and each
organization tell you a different set of independence rules, who do you follow
first?
Answer:
The most restrictive requirements
Question:
As a professional CPA, I have the greatest re-sponsibility to:
Answer:
Serve the public's interest by performing responsibilities with objectivity and
integrity
Question:
Which of the following is a specific rule of the objectivity and independence
principle?
Answer:
Be free from conflicts of interest
, Question:
What is the main reason that the Integrity Principle is fundamental to the
account profession?
Answer:
Integrity is key to maintaining the public's trust
Question:
Under the objectivity and independence principle, accountants providing
attestation services should be
Answer:
Independent in fact and appearance
Question:
Which of the following is not a member of "private accounting?"
Answer:
External auditor
Question:
Which factor must be in place for you to perform services in light of a
potential conflict of interest?
Answer:
You have determined that your threats to objectivity are at an acceptable level
Question:
What approach must AICPA members use to evaluate a matter that the code
does not?
Answer:
Threats and Safeguards
Question:
The threat that you could benefit, financially or otherwise, from an interest in,
or relationship with your client or persons associated with your client
describes which of the following?
Answer:
Self-Interest Threat
Question:
Which of the following is not a possible threat related to gifts and
entertainment?
Answer:
Adverse Interest Threat
Question:
Which of these is an example of a "quid pro quo" situation?
Answer:
A client giving an auditor a free product in exchange for a clean audit opinion
Question:
Quid Pro Quo
Answer:
"This for that"
