AICPA Ethics Exam UPDATED ACTUAL Questions and CORRECT Answers

AICPA Ethics Exam UPDATED ACTUAL Questions and CORRECT Answers

1. Ethical Decision helps you actively work through gray area and choose the best possible solution
Making Model 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

2. Step 1 Recognize the ethical issue

3. Step 2 Gather the critical facts

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

4. Step 3 Identify the stakeholders

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

5. Step 4 Consider your alternatives

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

6. Step 5 Consider the effect on stakeholders

-effect of each alternative

7. Step 6

, Consider your comfort level

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

8. Step 7 Consider rules, regulations, and laws

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

9. Step 8 Make a decision

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

10. Step 9 Document your efforts

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

11. Step 10 Evaluate the outcome

-would you have done anything differently

12. Professional & set ethics standards and rules for members of the accounting profession
Regulatory Bod-
ies State CPA licensing boards
AICPA
SEC
PCABO
IFAC
IRS
GAO