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. - (c) is the conect answer. Code of Professional
Conduct, Strncture, says that infraction of any of the rules make...
CPA Ethics E xam 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. - ✔✔(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. 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. - ✔✔(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. 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. - ✔✔(b) is correct. C ode of Professional Conduct, Structure, says that Principles and Rules must be approved by the AI CPA members. (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. 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. - ✔✔(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 d isclosed. (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. 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. - ✔✔(c) is corect. Code of Professional Conduct, Structure, sa ys 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. A CPA in public practice ______________ avoid operating under a code of professional et hics by choosing not to join either the AICPA or any state CPA society. (a) may (b) may not - ✔✔(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 no t 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 The accounting profession 's public inclu des (a) Governmental agencies. (b) Credit grantors. (c) Investors. (d) All of the above - ✔✔(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, (b) credit grantors and (c) investors. Compliance with the AICPA Code of Professional Conduct depends primarily on: (a) Public opinion and reinforcement of one's attestation peers. (b) Disciplinary proceedings when the code is violated. (c) Member's understanding the code and voluntary compliance with it. - ✔✔(c) is the correct answer. Composition, Applicability and Compliance in the Articles says that compliance with the code, as with all standards in an open society, depends primarily o n member 's understanding of the code and voluntary compliance with it. (a) is wrong. This section says that reinforcement by one's peers and public opinion is secondary in obtaining compliance with the code. (b) is also wrong since this section says disc iplinary proceedings against those that violate the code are the ultimate or final method of obtaining compliance. The Principles state that a member has responsibility to: (a) Colleagues. (b) Clients. (c) The public. (d) All of the above. - ✔✔(d) is corr ect. The Preamble to the Articles says that members have (a) a responsibility to colleagues, (b) to clients and (c) to the public. The Principles in the AICPA Code of Professional
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