Aicpa Ethics Code Exam Fully Solved 2025 #2
Which step in the decision-making model is characterized by asking the question, "Are
these opinions consistent with applicable professional ethics rules, regulations, and
laws?"
A. Recognize ethical issues
B. Gather critical facts
C. Consider the effect on stakeholders
D. Consider rules, regulations, and laws - correct answer D. Consider rules, regulations,
and laws
Step 7 asks this question. You may determine that the greatest benefit and least
amount of harm would likely result if you take a particular course of action, but if that
course of action is inconsistent with the profession's rules of conduct, you may not
ignore those rules.
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"
A. Recognize ethical issues
B. Consider your comfort level
C. Consider the effect on stake holders
D. Consider rules, regulations, and laws - correct answer B. Consider your comfort level
Step 6 asks you to consider your comfort level. Before you make a decision about the
correct action when facing an ethical issue, you should ask yourself some questions.
Cpas must follow the rules and standards promulgated by which body?
A. AICPA
B. SEC
C. PCAOB
D. Your state CPA licensing board - correct answer D. Your state CPA licensing board
State CPA licensing boards are charged with issuing CPA licenses and overseeing the
ethical conduct of cpas in 55 jurisdictions in the United States. It is critically important for
cpas to know their state board's requirements. If you are licensed by more than one
state board, you should familiarize yourself with each state's requirements.
As a professional CPA, I have the greatest responsibility to serve:
A. My clients
B. My best interest
C. The public's interest
D. My superior's interest - correct answer C. Your primary responsibility is to serve the
public interest.
As a professional CPA, I have a responsibility to maintain and broaden public
confidence by performing all my responsibilities with:
A. Integrity
B. Speed
, C. Agility
D. Perfection - correct answer A. Integrity
Integrity is one of the cornerstones of our profession.
I also must maintain my objectivity, be free of conflicts of interest, and discharge all of
my responsibilities with due...
A. Respect
B. Care
C. Diligence
D. Speed - correct answer B. Care
Due care implies a certain level of quality and competence in the performance of
services.
Bob is a CPA who works as as senior accountant in a small but diversified financial
services company. Bob works for the parent company (bank) in a division that makes
business loans. His mother has been offered a seat on the board of directors of a
subsidiary company that is an investment advisor.
Does Bob's situation cause a significant threat to Bob's integrity and objectivity (conflict
of interest)?
A. No. The bank and investment advisory firm are separate and distinct businesses
B. Yes. Directorships of relatives always result in conflicts of interest
C. Maybe. But more facts should be considered - correct answer C. Maybe. But more
facts should be considered
We need more information to determine whether this situation creates a significant
threat to Bob's ability to be objective.
Which factor must be in place for you to perform services in light of a potential conflict of
interest?
A. The affected parties have agreed to bring the matter to the BOD
B. The affected parties have agreed not to sue you or your firm
C. You have determined that your threats to objectivity are at an acceptable level
D. You have determined that some third parties might not question your objectivity -
correct answer C. You have determined that your threats to objectivity are at an
acceptable level
To proceed with evaluating your potential conflict of interest, you must conclude that
you can provide the services objectively (that is, threats to you objectivity are
insignificant or have been reduced to an acceptable level).
Suppose a statute exists in your state that allows you to place a lien on client records in
the event of unpaid fees. Given these facts are you obligated to return the client's
records?
A. No, not until he pays the $5,000 he owes you
B. Yes, these records should be provided upon request - correct answer B. Yes, these
records should be provided upon request
The code requires you to return client provided records under all circumstances.
Which step in the decision-making model is characterized by asking the question, "Are
these opinions consistent with applicable professional ethics rules, regulations, and
laws?"
A. Recognize ethical issues
B. Gather critical facts
C. Consider the effect on stakeholders
D. Consider rules, regulations, and laws - correct answer D. Consider rules, regulations,
and laws
Step 7 asks this question. You may determine that the greatest benefit and least
amount of harm would likely result if you take a particular course of action, but if that
course of action is inconsistent with the profession's rules of conduct, you may not
ignore those rules.
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"
A. Recognize ethical issues
B. Consider your comfort level
C. Consider the effect on stake holders
D. Consider rules, regulations, and laws - correct answer B. Consider your comfort level
Step 6 asks you to consider your comfort level. Before you make a decision about the
correct action when facing an ethical issue, you should ask yourself some questions.
Cpas must follow the rules and standards promulgated by which body?
A. AICPA
B. SEC
C. PCAOB
D. Your state CPA licensing board - correct answer D. Your state CPA licensing board
State CPA licensing boards are charged with issuing CPA licenses and overseeing the
ethical conduct of cpas in 55 jurisdictions in the United States. It is critically important for
cpas to know their state board's requirements. If you are licensed by more than one
state board, you should familiarize yourself with each state's requirements.
As a professional CPA, I have the greatest responsibility to serve:
A. My clients
B. My best interest
C. The public's interest
D. My superior's interest - correct answer C. Your primary responsibility is to serve the
public interest.
As a professional CPA, I have a responsibility to maintain and broaden public
confidence by performing all my responsibilities with:
A. Integrity
B. Speed
, C. Agility
D. Perfection - correct answer A. Integrity
Integrity is one of the cornerstones of our profession.
I also must maintain my objectivity, be free of conflicts of interest, and discharge all of
my responsibilities with due...
A. Respect
B. Care
C. Diligence
D. Speed - correct answer B. Care
Due care implies a certain level of quality and competence in the performance of
services.
Bob is a CPA who works as as senior accountant in a small but diversified financial
services company. Bob works for the parent company (bank) in a division that makes
business loans. His mother has been offered a seat on the board of directors of a
subsidiary company that is an investment advisor.
Does Bob's situation cause a significant threat to Bob's integrity and objectivity (conflict
of interest)?
A. No. The bank and investment advisory firm are separate and distinct businesses
B. Yes. Directorships of relatives always result in conflicts of interest
C. Maybe. But more facts should be considered - correct answer C. Maybe. But more
facts should be considered
We need more information to determine whether this situation creates a significant
threat to Bob's ability to be objective.
Which factor must be in place for you to perform services in light of a potential conflict of
interest?
A. The affected parties have agreed to bring the matter to the BOD
B. The affected parties have agreed not to sue you or your firm
C. You have determined that your threats to objectivity are at an acceptable level
D. You have determined that some third parties might not question your objectivity -
correct answer C. You have determined that your threats to objectivity are at an
acceptable level
To proceed with evaluating your potential conflict of interest, you must conclude that
you can provide the services objectively (that is, threats to you objectivity are
insignificant or have been reduced to an acceptable level).
Suppose a statute exists in your state that allows you to place a lien on client records in
the event of unpaid fees. Given these facts are you obligated to return the client's
records?
A. No, not until he pays the $5,000 he owes you
B. Yes, these records should be provided upon request - correct answer B. Yes, these
records should be provided upon request
The code requires you to return client provided records under all circumstances.
