CPA ETHICS EXAM WITH COMPLETE 500
QUESTIONS AND DETAILED SOLUTIONS LATEST
UPDATE THIS YEAR
CONTENTS
➢ CPA Ethics Exam -actual exam
➢ CPA Ethics Exam – study guide
CPA Ethics Exam -actual exam
QUESTION: An interpretation or ethics ruling usually becomes
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
1
,Page 2 of 228
normally effective the last day of the month they are published in the Journal of Accountancy.
(a) and (b) are therefore wrong.
QUESTION: A CPA in public practice ______________ avoid operating
under a code of professional ethics by choosing not
to join either the AICPA or any state CPA society.
(a) may
(b) may not - ANSWER-(b) is correct. Code of Professional Conduct, Coverage, says that no CPA
practicing public accounting may avoid operating under a code of ethics. The CPA may not join
the AI CPA or his or her state CPA society and therefore would not be subject to their codes of
ethics. The CPA, however, cannot avoid being subject to his or her state board of accountancy's
code of ethics
QUESTION: The accounting profession 's public includes
(a) Governmental agencies.
(b) Credit grantors.
(c) Investors.
(d) All of the above - ANSWER-(d) is the correct answer. As (see Article II) the
CPA's public includes everyone that relies on them. This then would include
(a) governmental agencies,
2
,Page 3 of 228
(b) credit grantors and
(c) investors.
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
Conduct, Strncture, says that infraction of any of the rules makes a member liable to
disciplinary action.
(a) is wrong since members who depart from the
guidance in ethical rulings in similar circumstances
will be asked to justify such departure. They cannot
however be charged with violating a ruling.
(b) is also wrong since a member cannot be
charged with violating an interpretation. In a disciplina1y
hearing where the member was charged with
violating a rnle, the member would have the burden of justifying any departure from
interpretations ofthat rule.
3
, Page 4 of 228
QUESTION: The Trial Board may, after a hearing, do two of the
three things listed below. Mark the one that the Trial
Board cannot do.
(a) Suspend a member.
(b) Suspend the member's CPA certificate.
( c) Expel a member. - ANSWER-(b) is the correct answer. Code of Professional
Conduct, Enforcement, says a Trial Board may
admonish, suspend or expel a member. The Trial
Board has no jurisdiction over a member's CPA
certificate.
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
4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller eddietaylor. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $27.99. You're not tied to anything after your purchase.
