AICPA ETHICS CERTIFICATION
COURSE (MODULE 2) QUESTIONS AND
ANSWERS WITH SOLUTIONS 2024
Integrity And Objectivity Rule (Code Definition) - ANSWER - an element of character fundamental to
professional recognition
- requires a member to be, among other things, honest and candid.
- measured in terms of what is right and just
Threats to Compliance with the Integrity and Objectivity Rule - ANSWER - would not be at an acceptable
level and could not be reduced to an acceptable level by the application of safeguards, and the member
would be considered to have knowingly misrepresented facts in violation
Violations of Integrity and Objectivity Rule - ANSWER - makes, or permits or directs another to make,
materially false and misleading entries in an entity's financial statements or records
- fails to correct an entity's financial statements or records that are materially false and misleading when
the member has the authority to record the entries
- signs, or permits or directs another to sign, a document containing materially false and misleading
information. [Prior reference: paragraph .02 of ET section 102]
Members Preparing or Presenting Info In Compliance with Integrity and Objectivity Rule MAY NOT: -
ANSWER exercise such discretion with the intention of misleading.
Members in Business - ANSWER - members employed or engaged on a contractual or volunteer basis in
an executive, staff, governance, advisory, or administrative capacity in such areas as industry, the public
sector, education, the not-for-profit sector, or regulatory or professional bodies
- Accounting professor
- Corporate board or audit committee member (including volunteer positions)
- CFO of a not-for-profit organization
- Corporate controller or CEO
, - Internal auditor
If the member knows or has reason to believe that the information with which he or she is associated is
misleading, member should: - ANSWER Apply appropriate safeguards to seek to resolve the matter,
including the following:
-Consulting the employing organization's policies and procedures (for example, an ethics or
whistleblowing policy) regarding how such matters should be addressed internally
- Discussing concerns that the information is misleading with the member's supervisor or the
appropriate levels of management within the member's employing organization or those charged with
governance and requesting such individuals to take appropriate action to resolve the matter. Such action
may include the following:
i. Having the information corrected
ii. If the information has already been disclosed to the intended users, informing them of the correct
information
If the member determines that appropriate action has not been taken and continues to have reason to
believe that the information is misleading, threats to compliance with the "Integrity and Objectivity
Rule" [2.100.001] would not be at an acceptable level, member should: - ANSWER In such circumstances,
the member, being alert to the requirements of the "Confidential Information Obtained From
Employment or Volunteer Activities" interpretation [2.400.070], should consider one or more of the
following safeguards:
- Consulting with a relevant professional body
- Consulting with the employing organization's internal auditor and external accountant
- Determining whether any requirements exist to communicate to third parties, including users of the
information, the organization's external accountant, or regulatory authorities
- Consulting legal counsel regarding his or her responsibilities
If, after exhausting all feasible options, the member determines that appropriate action has not been
taken and there is reason to believe that the information is still misleading, member should: - ANSWER -
refuse to be or to remain associated with the information.
- The member also should consider whether to continue a relationship with the employing organization
Pressure to Breach the Rules: - ANSWER - explicit or implicit
- could come from within your employing organization (such as a supervisor) or from outside (such as a
vendor or customer).
COURSE (MODULE 2) QUESTIONS AND
ANSWERS WITH SOLUTIONS 2024
Integrity And Objectivity Rule (Code Definition) - ANSWER - an element of character fundamental to
professional recognition
- requires a member to be, among other things, honest and candid.
- measured in terms of what is right and just
Threats to Compliance with the Integrity and Objectivity Rule - ANSWER - would not be at an acceptable
level and could not be reduced to an acceptable level by the application of safeguards, and the member
would be considered to have knowingly misrepresented facts in violation
Violations of Integrity and Objectivity Rule - ANSWER - makes, or permits or directs another to make,
materially false and misleading entries in an entity's financial statements or records
- fails to correct an entity's financial statements or records that are materially false and misleading when
the member has the authority to record the entries
- signs, or permits or directs another to sign, a document containing materially false and misleading
information. [Prior reference: paragraph .02 of ET section 102]
Members Preparing or Presenting Info In Compliance with Integrity and Objectivity Rule MAY NOT: -
ANSWER exercise such discretion with the intention of misleading.
Members in Business - ANSWER - members employed or engaged on a contractual or volunteer basis in
an executive, staff, governance, advisory, or administrative capacity in such areas as industry, the public
sector, education, the not-for-profit sector, or regulatory or professional bodies
- Accounting professor
- Corporate board or audit committee member (including volunteer positions)
- CFO of a not-for-profit organization
- Corporate controller or CEO
, - Internal auditor
If the member knows or has reason to believe that the information with which he or she is associated is
misleading, member should: - ANSWER Apply appropriate safeguards to seek to resolve the matter,
including the following:
-Consulting the employing organization's policies and procedures (for example, an ethics or
whistleblowing policy) regarding how such matters should be addressed internally
- Discussing concerns that the information is misleading with the member's supervisor or the
appropriate levels of management within the member's employing organization or those charged with
governance and requesting such individuals to take appropriate action to resolve the matter. Such action
may include the following:
i. Having the information corrected
ii. If the information has already been disclosed to the intended users, informing them of the correct
information
If the member determines that appropriate action has not been taken and continues to have reason to
believe that the information is misleading, threats to compliance with the "Integrity and Objectivity
Rule" [2.100.001] would not be at an acceptable level, member should: - ANSWER In such circumstances,
the member, being alert to the requirements of the "Confidential Information Obtained From
Employment or Volunteer Activities" interpretation [2.400.070], should consider one or more of the
following safeguards:
- Consulting with a relevant professional body
- Consulting with the employing organization's internal auditor and external accountant
- Determining whether any requirements exist to communicate to third parties, including users of the
information, the organization's external accountant, or regulatory authorities
- Consulting legal counsel regarding his or her responsibilities
If, after exhausting all feasible options, the member determines that appropriate action has not been
taken and there is reason to believe that the information is still misleading, member should: - ANSWER -
refuse to be or to remain associated with the information.
- The member also should consider whether to continue a relationship with the employing organization
Pressure to Breach the Rules: - ANSWER - explicit or implicit
- could come from within your employing organization (such as a supervisor) or from outside (such as a
vendor or customer).
