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Ethics and Governance in the CPA Program Australia -
Digital Finance Exam Actual Complete Real Verified
Exam Questions & Correct Answers (Verified
Answers) | Get It 100% Accurate!! Already Graded A+ |
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The duty of confidentiality applies to:
a. All communications between a CPA and a client
b. All communications between a CPA working in industry
and his employer or designated employer representative
c. Only information exchanged between tax return
preparers and their clients
d. All CPAs and their clients until the time that a CPA
retires from the active practice of accounting - Answer-a
A CPA wishes to mention the names of her most
prominent clients on her website. The mere existence of a
professional relationship between a CPA and a small
business client:
a. Never may be disclosed due to the duty of
confidentiality
b. Never may be disclosed unless the client gives it
specific consent
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c. Generally may be disclosed by a CPA as long as the
substance of the communications between them is not
disclosed
d. Always may be disclosed, but it is advisable to first
request the client's permission to avoid jeopardizing the
client's goodwill - Answer-c
During the cold winter months, a Nebraska corn farmer
discussed hiring a CPA to maintain his books and records.
During the course of their discussions, the farmer told the
CPA about various proprietary techniques that he uses to
maximize the yield from growing corn and maximize the
revenue his business generates. Thereafter, the farmer got
busy operating his business and never contacted the CPA
again.For what period of time, if any, does this CPA owe a
duty of confidentiality to this farmer?
a. No duty at all because the duty of confidentiality only
continued until the time at which it became reasonably
certain that the farmer would not become the CPA's client
b. Expired after the end of the farmer's busy growing and
harvesting season, if not sooner
c. One year
d. Forever - Answer-d
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A client wants to discuss with its CPA some of the
valuation and accounting issues associated with
maintaining a proprietary business process as a trade
secret rather than obtaining a patent for it. Patents are
granted by the United States Patent Office. As a result:
a. The federal accountant-client privilege applies to protect
these discussions from being revealed to the general
public
b. The duty of confidentiality, as articulated in the Code of
Professional Conduct, applies to these discussions
c. The federal accountant-client privilege does not fully
apply because discussions of non-accounting issues, such
as the preservation of a patent, are exempted from the
scope of this privilege
d. Both the duty of confidentiality and the federal
accountant-client privilege govern this situation - Answer-b
A CPA specializes in helping businesses evaluate their
future prospects and create successful budgets. As part of
this process, the CPA invariably learns confidential
information about a company's future. To avoid potential
liability, the CPA's engagement letter states upfront that
"all information learned after the commencement of
services shall not be subject to the duty of confidentiality."
This CPA:
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a. May utilize for its own benefit information learned from
this budgeting engagement because of this express
waiver provision
b. May utilize for its own benefit information learned from
this budgeting engagement because the duty of
confidentiality does not apply to management consulting
engagements
c. May not utilize information learned from this client
relationship because the client did not give its specific
consent
d. May not utilize information learned from this client
relationship because the duty of confidentia - Answer-c
CPAs who are full-time employees of a corporation and
focus on the preparation of earnings forecasts and
projections invariably learn confidential information about
their employer's future prospects. Is such an employee
subject to the duty of confidentiality?
a. Yes, if the employment agreement between the
employer and employee establish the duty of
confidentiality
b. Yes, but they would not be subject to this duty if they
performed their services as part-time employees
Ethics and Governance in the CPA Program Australia -
Digital Finance Exam Actual Complete Real Verified
Exam Questions & Correct Answers (Verified
Answers) | Get It 100% Accurate!! Already Graded A+ |
Newest Exam!!!
The duty of confidentiality applies to:
a. All communications between a CPA and a client
b. All communications between a CPA working in industry
and his employer or designated employer representative
c. Only information exchanged between tax return
preparers and their clients
d. All CPAs and their clients until the time that a CPA
retires from the active practice of accounting - Answer-a
A CPA wishes to mention the names of her most
prominent clients on her website. The mere existence of a
professional relationship between a CPA and a small
business client:
a. Never may be disclosed due to the duty of
confidentiality
b. Never may be disclosed unless the client gives it
specific consent
,2|Page
c. Generally may be disclosed by a CPA as long as the
substance of the communications between them is not
disclosed
d. Always may be disclosed, but it is advisable to first
request the client's permission to avoid jeopardizing the
client's goodwill - Answer-c
During the cold winter months, a Nebraska corn farmer
discussed hiring a CPA to maintain his books and records.
During the course of their discussions, the farmer told the
CPA about various proprietary techniques that he uses to
maximize the yield from growing corn and maximize the
revenue his business generates. Thereafter, the farmer got
busy operating his business and never contacted the CPA
again.For what period of time, if any, does this CPA owe a
duty of confidentiality to this farmer?
a. No duty at all because the duty of confidentiality only
continued until the time at which it became reasonably
certain that the farmer would not become the CPA's client
b. Expired after the end of the farmer's busy growing and
harvesting season, if not sooner
c. One year
d. Forever - Answer-d
,3|Page
A client wants to discuss with its CPA some of the
valuation and accounting issues associated with
maintaining a proprietary business process as a trade
secret rather than obtaining a patent for it. Patents are
granted by the United States Patent Office. As a result:
a. The federal accountant-client privilege applies to protect
these discussions from being revealed to the general
public
b. The duty of confidentiality, as articulated in the Code of
Professional Conduct, applies to these discussions
c. The federal accountant-client privilege does not fully
apply because discussions of non-accounting issues, such
as the preservation of a patent, are exempted from the
scope of this privilege
d. Both the duty of confidentiality and the federal
accountant-client privilege govern this situation - Answer-b
A CPA specializes in helping businesses evaluate their
future prospects and create successful budgets. As part of
this process, the CPA invariably learns confidential
information about a company's future. To avoid potential
liability, the CPA's engagement letter states upfront that
"all information learned after the commencement of
services shall not be subject to the duty of confidentiality."
This CPA:
, 4|Page
a. May utilize for its own benefit information learned from
this budgeting engagement because of this express
waiver provision
b. May utilize for its own benefit information learned from
this budgeting engagement because the duty of
confidentiality does not apply to management consulting
engagements
c. May not utilize information learned from this client
relationship because the client did not give its specific
consent
d. May not utilize information learned from this client
relationship because the duty of confidentia - Answer-c
CPAs who are full-time employees of a corporation and
focus on the preparation of earnings forecasts and
projections invariably learn confidential information about
their employer's future prospects. Is such an employee
subject to the duty of confidentiality?
a. Yes, if the employment agreement between the
employer and employee establish the duty of
confidentiality
b. Yes, but they would not be subject to this duty if they
performed their services as part-time employees
