AICPA Ethics Actual Exam AICPA

AICPA Ethics Actual Exam | AICPA Ethics Final 113 Exam Questions and Correct Answers Rated A+

Generally, ethical dilemmas are not routine. Therefore, there is no way that an individual can be prepared or informed for a problem ahead of time. -ANSWER-False, It is important that you do your homework and understand how to protect yourself and your employer. This will give you a "head's up" when you face potential ethical dilemmas

PCAOB set auditing, quality control, ethics, independence and other standards relating to the preparation of audit reports. -ANSWER- False, Only for Issuers

The AICPA bylaws require that members adhere to the rules in the Code. -ANSWER-True

The American Institute of Certified Public Accountants has been the primary ethical rules for internal auditors. -ANSWER-False

Members employed by others to prepare financial statements or to perform auditing must adhere to the objectivity and independence principle in the AICPA Code of Conduct -ANSWER-False, They are charged with the same responsibility for objectivity as members in public practice

The AICPA Code of Professional Conduct derives its authority from specific federal legislation. -ANSWER-False, The AICPA Code of Professional Conduct derives its authority from the Bylaws of the

AICPA.

An ethical dilemma is defined as a situation where two or more "right" values are in conflict -ANSWER-true

Members would be violating the Integrity principle if they have inadvertent errors and have honest differences of opinion while performing their duties. -ANSWER-False, Integrity can accommodate the inadvertent error and honest difference of opinion; it cannot accommodate deceit or subordination of principles.

AICPA Interpretations limit the scope and application of the rules. - ANSWER-False, The interpretations of the rules of conduct provide guidelines about the scope and application of the rules but are not intended to limit such scope or application

The AICPA Code of Professional Conduct provides practical guidance to only members in public practice -ANSWER-False, The AICPA Code provides practice guidance for all members.

Under the Rules of Professional Conduct promulgated under the Texas Public Accountancy Act, all of the rules of professional conduct shall apply to and must be observed by a certificate or registration holder engaged in the client practice of public accountancy. - ANSWER-True, Correct under Rule 501.53(a), Applicability of Rules of Professional Conduct.

Integrity as defined in the AICPA Code of Conduct is an element of character fundamental to professional recognition -ANSWER-True

The characteristics common to all profession include existence of a complex body of knowledge and acknowledgement of a responsibility to serve the client. -ANSWER-False, responsibility to serve the public

Membership in the AICPA is voluntary, but by accepting membership, a CPA assumes an obligation of self-discipline and agrees to adhere to the Code. -ANSWER-True

The AICPA Code of Professional Conduct begins with a preface that applies to all members. -ANSWER-True

The Responsibilities principle of the AICPA Code of Conduct requires that service and public trust not be subordinated to personal gain and advantage. -ANSWER-False, This is integrity

The AICPA Code of Professional Conduct provides assurance to clients and to the public that the professional intends to maintain high standards. -ANSWER-True

PCAOB was created by the Sarbanes-Oxley Act of 2002. -ANSWER- True

CPAs who practice in public accounting are required to be members of AICPA. -ANSWER-False, membership in the AICPA is voluntary

The AICPA Rules of Conduct apply to all professional services performed. -ANSWER-False, except when working of the rule indicates otherwise

Integrity is the quality from which public trust derives and the benchmark against which a member must ultimately test all decisions.-ANSWER-True

Objectivity is measured in terms of what is right and just. -ANSWER- False, This is integrity

Providing tax services to both parties involved in a divorce proceeding would not be viewed as impairing a CPA's objectivity. -ANSWER- False, This would be considered a conflict of interest

CPAs employed by others to prepare financial statements or to perform internal auditing, tax, or consulting services are charged with the same responsibility for objectivity as those in public practice. - ANSWER-True

A conflict of interest exists if a member in public practice provides services to a company that is a major competitor of a company in which the CPA has a position of influence. -ANSWER-True

A conflict of interest does not exist when a member in public practice provides taxes services to a divorced couple -ANSWER-False, The conflict of interest exists if the couple were involved in a divorce proceeding

A conflict of interest does not exist when a member in public practice refers a client to a service bureau in which the member or partners in the member's firm hold material financial interest. -ANSWER-False, This creates an adverse interest and a self-interest which creates a treat to the member's compliance with the Integrity and Objectivity Rule.

A conflict of interest would exist if a member in business selects his ex-wife's company to provide cleaning services for his employer's buildings. -ANSWER-False, Ex-wife is not considered to be an immediate family member.