QUESTION: Which of the following requires that any changes in
them be approved by the members of the AICPA?
(a) Rules and interpretations of the rules.
(b) Principles and rules.
(c) Principles, rules and interpretations of the rules. - ANSWER-(b) is correct. Code of
Professional Conduct,
Structure, says that Principles and Rules must be
approved by the AI CPA members.
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(a) is wrong and ...
( c) is wrong since interpretations are prepared and issued by the Professional Ethics Executive
Committee without obtaining approval by the members.
QUESTION: The results of a guilty finding by a Trial Board will
be:
(a) published by the AICPA, but the member 's name will not be disclosed.
(b) published by the AICPA. and the member 's name will be disclosed if the Trial Board votes to
do
so.
(c) published by the AICPA with the member 's
name given. - ANSWER-(c) is correct. Code of Professional Conduct,
Enforcement says that Trial Board convictions must
be published with the member's name disclosed.
(a) is then wrong since the name must be disclosed.
(b) is also wrong since the Trial Board does not have the option of deciding whether or not the
member's name will be disclosed.
QUESTION: An interpretation or ethics ruling usually becomes
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effective:
(a) the first day of the month following the
month it is published in the Journal of Accountancy.
(b) two weeks after it is published in The CPA
Letter.
(c) the last day of the month in which it is
published in the Journal of Accountancy. - ANSWER-(c) is corect. Code of Professional Conduct,
Structure, says that interpretations and rulings are
normally effective the last day of the month they are published in the Journal of Accountancy.
(a) and (b) are therefore wrong.
Which category contains the ethical standards, a
violation of which makes a member liable to disciplinary
action?
(a) Ethics Rulings.
(b) Interpretations of the Rules.
(c) Rules. - ANSWER-(c) is the conect answer. Code of Professional
4
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