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A6_M8_The AICPA Code Of Professional Conduct Exam With 100% Correct And Verified Answer
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A6_M8_The AICPA Code Of Professional Conduct Exam With 100% Correct And Verified Answer
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A6_M8_The AICPA Code Of ProfessionalConduct Exam With 100% Correct And
Verified Answer
State board: - Correct Answer-☐ issues CPA .
☐ renews.
☐ suspends.
☐ revokes.
the AICPA's code of professional conduct governs any
service that a member of the AICPA performs. These
services include audits, special reports, compilations ,
reviews, and services performed on financial forecasts and
projections, as well as attestation engagements. - Correct
Answer-members not in public practice are governed by
certain requirements of the Code of Professional Conduct as
well.
A professional code of conduct is a distinguishing mark of a
profession that accepts a high degree of responsibility
toward the public. it is a voluntary acceptance for the
purpose of benefiting society. - Correct Answer-The AICPA
Code of Professional Conduct addresses the question of what
is "right" and "just." the code consists of principles and
rules as well as interpretations and other guidance.
the code utilizes certain terms to enhance the clarity of the
interpretations and definitions.
☐ Consider: used when the member is required to think
about several matters. - Correct Answer-☐ Evaluate: Used
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,when the member has to assess and weigh the significance of
matter.
☐ Determine: Used when the member has to come to a
conclusion and make a decision on a matter.
The code is separated into three parts: - Correct Answer-(1).
members in public practice.
(2). members in business.
(3). other members.
Principles provide the framework that is basis for the code
of conduct. - Correct Answer-☐ Responsibilities:
☐ Public Interest:
☐ integrity:
☐ objectivity and independence:
☐ Due care:
☐ Scope and Nature of Services:
☐ Responsibilities: - Correct Answer-in carrying out their
responsibilities as professionals, members should exercise
sensitive professional and moral judgements in all their
activities.
☐ Public Interest: "members should accept the obligation to
act in a way that will serve the public interest, honor the
public trust, and demonstrate commitment to
professionalism." - Correct Answer-this relates to the
profession's acceptance of responsibility to the public.
☐ integrity: "to maintain and broaden public confidence,
members should perform all professional responsibilities with the
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,highest sense of integrity." - Correct Answer-integrity addresses
the question of what is right and just.
☐ objectivity and independence: "a member should maintain
objectivity and be free of conflicts of interest in discharging
professional responsibilities. - Correct Answer-a member in public
practice should be independent in fact and appearance when
providing auditing and other attestation services." [emphasis
added.]
☐ Due care:
"a member should observe the profession's technical and ethical
standards, - Correct Answer-strive continually to improve
competence and the quality of services, and discharge
professional responsibility to the best of the members' ability."
☐ Scope and Nature of Services: "a member in public practice
should observe the Principles - Correct Answer-of the Code of
Professional Conduct in determining the scope and nature of
services to be provided."
For exam purposes, it is key to remember that objectivity applies
to all services rendered; - Correct Answer-but independence
applies to attestation services only [audits, special reports, and
reviews].
This requires members to:
(1). have adequate internal quality control measures to ensure
quality work; - Correct Answer-(2). determine whether, for audit
clients, conflicts of interest arise due to the scope and nature of
other services; and
(3). assess whether the firm's activities are consistent with
professionalism.
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, The "rules" portion of the code consists of rules, interpretations,
and rulings that govern the specific performance of members. -
Correct Answer-The rules that apply to members are based on
whether they are a member in public practice, a member in
business, and / or an other member.
Member in public practice:
☐ independence rule.
☐ integrity and objectivity rule.
☐ General standards rule.
☐ compliance with standards rule.
☐ accounting principles rule. - Correct Answer-☐ confidential
client information rule.
☐ contingent fees rule.
☐ acts discreditable rule.
☐ advertising and other forms of solicitation rule.
☐ commissions and referral fees rule.
☐ form of organization and name rule.
Member in business: - Correct Answer-☐
integrity and objectivity rule.
☐ General standards rule.
☐ compliance with standards rule.
☐ accounting principles rule.
☐ acts discreditable rule.
Other member [i.e., retired or unemployed] -
Correct Answer-☐ acts discreditable rule.
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