LATEST WGU D550 ETHICS FOR ACCOUNTANTS
PRE ASSESSMENT
(PA) EXAM ACTUAL 2026/2027 COMPLETE
ACCURATE QUESTIONS
AND CORRECT DETAILED ANSWERS WITH
RATIONALES
(VERIFIED ANSWERS) CURRENTLY UPDATED
VERSION 2026
EDITION (GUARANTEED PASS A+ (BRAND
NEW!) FULL REVISED
ETHICS FOR ACCOUNTANTS D550 WGU PRE
ASSESSMENT
APPROVED EXAM
1. Which fundamental principle of the AICPA Code requires a CPA to be
honest
and candid within the constraints of client confidentiality?
A) Objectivity
B) Integrity (CORRECT ANSWER)
,C) Due care
D) Professional behavior
Rationale: Integrity requires honesty and straightforwardness in all
professional
relationships. Objectivity pertains to impartiality; due care relates to
competence;
professional behavior concerns compliance with standards.
2. Under the IESBA conceptual framework, after identifying a threat to
compliance with ethical principles, the accountant must:
A) Immediately withdraw from the engagement
B) Evaluate the significance of the threat and apply safeguards
(CORRECT ANSWER)**
C) Notify the client’s legal counsel
D) Document the threat and disregard it if minor
,Rationale:The framework requires evaluation and application of
safeguards. Withdrawal is a last resort, not the first step.
3. A CPA owns 5% of the outstanding shares of an audit client. This
creates which type of threat?
A) Advocacy threat
B) Self-interest threat (CORRECT ANSWER)
C) Familiarity threat
D) Management participation threat
Rationale: Direct financial interest in a client creates a self-interest
threat because the CPA may benefit from the audit outcome.
4. Which of the following is a prohibited non-audit service for an SEC
audit client under Sarbanes-Oxley?
A) Tax compliance
B) Internal audit outsourcing (CORRECT ANSWER)
, C) Tax preparation
D) Advisory on accounting standards
Rationale: SOX Section 201 explicitly prohibits internal audit
outsourcing to the external auditor for public companies.
5. A CPA is asked to backdate a contract to improve the client’s financial
ratios. The CPA refuses. Which principle is being upheld?
A) Confidentiality
B) Integrity (CORRECT ANSWER)
C) Professional behavior
D) Due care
Rationale:Backdating is dishonest; refusing upholds integrity (honesty
and straightforwardness).
PRE ASSESSMENT
(PA) EXAM ACTUAL 2026/2027 COMPLETE
ACCURATE QUESTIONS
AND CORRECT DETAILED ANSWERS WITH
RATIONALES
(VERIFIED ANSWERS) CURRENTLY UPDATED
VERSION 2026
EDITION (GUARANTEED PASS A+ (BRAND
NEW!) FULL REVISED
ETHICS FOR ACCOUNTANTS D550 WGU PRE
ASSESSMENT
APPROVED EXAM
1. Which fundamental principle of the AICPA Code requires a CPA to be
honest
and candid within the constraints of client confidentiality?
A) Objectivity
B) Integrity (CORRECT ANSWER)
,C) Due care
D) Professional behavior
Rationale: Integrity requires honesty and straightforwardness in all
professional
relationships. Objectivity pertains to impartiality; due care relates to
competence;
professional behavior concerns compliance with standards.
2. Under the IESBA conceptual framework, after identifying a threat to
compliance with ethical principles, the accountant must:
A) Immediately withdraw from the engagement
B) Evaluate the significance of the threat and apply safeguards
(CORRECT ANSWER)**
C) Notify the client’s legal counsel
D) Document the threat and disregard it if minor
,Rationale:The framework requires evaluation and application of
safeguards. Withdrawal is a last resort, not the first step.
3. A CPA owns 5% of the outstanding shares of an audit client. This
creates which type of threat?
A) Advocacy threat
B) Self-interest threat (CORRECT ANSWER)
C) Familiarity threat
D) Management participation threat
Rationale: Direct financial interest in a client creates a self-interest
threat because the CPA may benefit from the audit outcome.
4. Which of the following is a prohibited non-audit service for an SEC
audit client under Sarbanes-Oxley?
A) Tax compliance
B) Internal audit outsourcing (CORRECT ANSWER)
, C) Tax preparation
D) Advisory on accounting standards
Rationale: SOX Section 201 explicitly prohibits internal audit
outsourcing to the external auditor for public companies.
5. A CPA is asked to backdate a contract to improve the client’s financial
ratios. The CPA refuses. Which principle is being upheld?
A) Confidentiality
B) Integrity (CORRECT ANSWER)
C) Professional behavior
D) Due care
Rationale:Backdating is dishonest; refusing upholds integrity (honesty
and straightforwardness).
