AICPA ETHICS FINAL EXAM
,1. Generally, ethical dilemmas are not routine. Therefore,
there is no way that an individual can be prepared or
informed for a problem ahead of time.: False, It is important that
you do your homework and understand how to protect yourself
and your employer. This will give you a "head's up" when you face
potential ethical dilemmas
2. PCAOB set auditing, quality control, ethics, independence
and other stan- dards relating to the preparation of audit
reports.: False, Only for Issuers
3. The AICPA bylaws require that members adhere to the
rules in the Code.: -
True
4. The American Institute of Certified Public Accountants has
been the primary ethical rules for internal auditors.: False
5. Members employed by others to prepare financial
statements or to perform auditing must adhere to the
objectivity and independence principle in the AICPA Code of
,Conduct: False, They are charged with the same responsibility for
objectivity as members in public practice
6. The AICPA Code of Professional Conduct derives its
authority from specific federal legislation.: False, The AICPA
Code of Professional Conduct derives its authority from the
Bylaws of the AICPA.
7. An ethical dilemma is defined as a situation where two or
more "right" values are in conflict: true
8. Members would be violating the Integrity principle if they
have inadvertent errors and have honest differences of
opinion while performing their duties.-
: False, Integrity can accommodate the inadvertent error and
honest difference of opinion; it cannot accommodate deceit or
subordination of principles.
9. AICPA Interpretations limit the scope and application of the
rules.: False, The interpretations of the rules of conduct provide
guidelines about the scope and application of the rules but are not
intended to limit such scope or application
, 10. The AICPA Code of Professional Conduct provides
practical guidance to only members in public practice: False,
The AICPA Code provides practice guidance for all members.
11. Under the Rules of Professional Conduct promulgated
under the Texas Public Accountancy Act, all of the rules of
professional conduct shall apply to and must be observed by
a certificate or registration holder engaged in the client
practice of public accountancy.: True, Correct under Rule
501.53(a), Applicability of Rules of Professional Conduct.
12. Integrity as defined in the AICPA Code of Conduct is an
element of char- acter fundamental to professional
recognition: True
,1. Generally, ethical dilemmas are not routine. Therefore,
there is no way that an individual can be prepared or
informed for a problem ahead of time.: False, It is important that
you do your homework and understand how to protect yourself
and your employer. This will give you a "head's up" when you face
potential ethical dilemmas
2. PCAOB set auditing, quality control, ethics, independence
and other stan- dards relating to the preparation of audit
reports.: False, Only for Issuers
3. The AICPA bylaws require that members adhere to the
rules in the Code.: -
True
4. The American Institute of Certified Public Accountants has
been the primary ethical rules for internal auditors.: False
5. Members employed by others to prepare financial
statements or to perform auditing must adhere to the
objectivity and independence principle in the AICPA Code of
,Conduct: False, They are charged with the same responsibility for
objectivity as members in public practice
6. The AICPA Code of Professional Conduct derives its
authority from specific federal legislation.: False, The AICPA
Code of Professional Conduct derives its authority from the
Bylaws of the AICPA.
7. An ethical dilemma is defined as a situation where two or
more "right" values are in conflict: true
8. Members would be violating the Integrity principle if they
have inadvertent errors and have honest differences of
opinion while performing their duties.-
: False, Integrity can accommodate the inadvertent error and
honest difference of opinion; it cannot accommodate deceit or
subordination of principles.
9. AICPA Interpretations limit the scope and application of the
rules.: False, The interpretations of the rules of conduct provide
guidelines about the scope and application of the rules but are not
intended to limit such scope or application
, 10. The AICPA Code of Professional Conduct provides
practical guidance to only members in public practice: False,
The AICPA Code provides practice guidance for all members.
11. Under the Rules of Professional Conduct promulgated
under the Texas Public Accountancy Act, all of the rules of
professional conduct shall apply to and must be observed by
a certificate or registration holder engaged in the client
practice of public accountancy.: True, Correct under Rule
501.53(a), Applicability of Rules of Professional Conduct.
12. Integrity as defined in the AICPA Code of Conduct is an
element of char- acter fundamental to professional
recognition: True
