AICPA Ethics Rules CPA Exam Latest Update

AICPA Ethics Rules & CPA Exam Latest Update

• Actual Exam 200 Questions with 100%

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A basic objective of a CPA firm is to provide professional services that conform with professional standards. Reasonable assurance of achieving this basic objective is

provided through:

• Compliance with generally accepted reporting standards.
• A system of quality control.
• A system of peer review.

D. Continuing professional education. - CORRECT ANSWER: B

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.

• may
• may not
• can

D. probably - CORRECT ANSWER: B

A member of the AICPA must:

• Undertake only those professional services that the member or member's firm can

reasonably expect to be completed with professional competence.

• Exercise due professional care in the performance of professional services.
• Adequately plan and supervise the performance of professional services.

d. All of the above. - CORRECT ANSWER: D

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According to the AICPA Code of Professional Conduct, Rule 101-Independence, an audit requires that an individual perform his or her services with integrity and objectivity.There must be reasonable assurance that this is being done during the Page 4 of 5 engagement. What must an accountant do to be in compliance with the generally accepted auditing standards?

• Be independent in fact.
• Be independent in appearance.
• Both.

d. Neither - CORRECT ANSWER: C

AICPA members should act in a way that will:

• Serve the public interest
• Honor the public trust
• Demonstrate commitment to professionalism
• All of the above

e. None of the above. - CORRECT ANSWER: D

Regarding the fees of registered independent accounting firms on a audit engagement

the following is true:

• The firm may charge a client a commission based on recovery received due to

finding an issue on the financials.

• The firm may charge a flat fee for all work.
• The firm may charge a fee based on the number of errors it find in the clients

financials.

• The firm can receive commissions from third parties for work performed on a client. -

CORRECT ANSWER: B

T/F: According to AICPA Code of Professional Conduct, a CPA may receive a contingent

fee for performing an audit of a financial statement? - CORRECT ANSWER: False

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T/F: The enforcement division of TSBPA may take legal action against a CPA that fails

to follow the Board's rules. - CORRECT ANSWER: True

T/F: You'll have 24 months to pass all four CPA Exam sections with a minimum score of

70. Is it true or false? - CORRECT ANSWER: False, 18 months with scores of 75+

To whom does the AICPA Code of Professional Conduct apply:

• Members in Public practice
• Members in Industry
• Members in Government
• Members in Education

e. All of the above - CORRECT ANSWER: E

Under the newly adopted licensure model starting in , a candidate that successfully passes all 4 parts of the CPA exam will have a designation indicating a specialization in

which of the following:

• Tax Compliance and Planning
• Business Reporting and Analysis
• Information Systems and Controls

D. No designation indicating a specialization - CORRECT ANSWER: D

What are AICPA's principles for ethical conduct? - CORRECT ANSWER: Integrity

Objectivity Professional Competence and Due Care Confidentiality, and Professional Behavior.

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What does JEEP stand for, and what is the purpose? - CORRECT ANSWER: Joint

Ethics Enforcement Program.

It is an agreement between the AICPA and a state society to permit a single investigation of a joint member to enforce their respective codes.

What established accounting principles must be followed and are enforceable under the Code of Professional Conduct as designated by the AICPA?

• Generally Accepted Accounting Principles (GAAP)
• Financial Reporting Framework for Small- and Medium-Sized Entities (FRF)
• International Accounting Standards (IAS)

D. International Financial Reporting Standards (IFRS) - CORRECT ANSWER: A

What is a positive way to maintain a quality relationship with a client?

• Have written fee agreements, with clearly defined terms (i.e. billing) and, if needed,

provide cost estimates.

• Complete work at agreed upon deadlines.
• Use appropriate phone protocol to maintain confidentiality with clients.
• Monitor quality of all work, including drafts as well as client status reports.

e. All of the above. - CORRECT ANSWER: E

What is NOT a positive way to maintain a quality relationship with a client?

• Have written fee agreements, with clearly defined terms (i.e. billing) and, ifneeded,

provide cost estimates.

• Complete work past agreed upon deadlines.
• Use appropriate phone protocol to maintain confidentiality with clients.
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