AICPA Ethics Exam – Q’s And A’s (With Solutions)

AICPA Ethics Exam – Q’s And A’s (With Solutions)

Ethical Decision Making Model ✔️Ans - helps you actively work through
gray area and choose the best possible solution to an ethical dilema

Step 1: Recognize the ethical issue
Step 2: Gather the critical facts
Step 3: Identify the stakeholders
Step 4: Consider your alternatives
Step 5: Consider the effect on stakeholders
Step 6: Consider your comfort level
Step 7: Consider rules, regulations and laws
Step 8: Make a decision
Step 9: Document your efforts
Step 10: Evaluate the outcome

Step 1 ✔️Ans - Recognize the ethical issue

Step 2 ✔️Ans - Gather the critical facts

-you may not have all the facts, but you need the key ones (material)

Step 3 ✔️Ans - Identify the stakeholders

-who is affected by your decisions/actions
-consider as many as possible

Step 4 ✔️Ans - Consider your alternatives

-approaches you could take to address this matter and resolve the ethical
conflict

Step 5 ✔️Ans - Consider the effect on stakeholders

-effect of each alternative

Step 6 ✔️Ans - Consider your comfort level

, -how comfortable are you with each option
-how would you feel if you have to discuss your decision in public

Step 7 ✔️Ans - Consider rules, regulations, and laws

-rules set by AICPA, state accountancy board, state CPA society

Step 8 ✔️Ans - Make a decision

-take the time you need
-discuss with colleague, gain perspectives, counsel, don't be hasty

Step 9 ✔️Ans - Document your efforts

-your understanding of the facts
-who you consulted with and their professional affiliations
-your decision

Step 10 ✔️Ans - Evaluate the outcome

-would you have done anything differently

Professional & Regulatory Bodies ✔️Ans - set ethics standards and rules
for members of the accounting profession

State CPA licensing boards
AICPA
SEC
PCABO
IFAC
IRS
GAO
DOL
others

State CPA Licensing Boards ✔️Ans - issues CPA licesnes and oversee
ethical conduct of jurisdiction

AICPA ✔️Ans - American Institute of Certified Public Accountants