Exam (elaborations)
AICPA Ethics Code Exam – Questions/Solutions
AICPA Ethics Code Exam – Questions/Solutions
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AICPA Ethics Code Exam – Questions/SolutionsWhich 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 Ans - 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 Ans - 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 Ans - 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 Ans - 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 Ans - 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 Ans - 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 Ans - 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.
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