AICPA Ethics Exam Questions
with Correct Answers
1. State CPA Licensing Boards - ANSWER issues CPA licesnes and oversee
ethical conduct of jurisdiction
2. AICPA - ANSWER American Institute of Certified Public Accountants
3. national professional organization for all CPAs; work with state CPA
societies
4. -PEEC: Professional Ethics Executive Committee promulgates and enforces
ethics and independence rules that apply to all members
5. SEC - ANSWER Securities and Exchange Commission
6. federal agency
7. establishes and enforces accounting and auditing policies
8. PCAOB - ANSWER Public Company Accounting Oversight Board
9. establishes auditing, attestation, quality control, ethics and independence
standards for public company auditors
10.IFAC - ANSWER International Federation of Accountants
,11.develop standards for auditing, education, ethics, and public sector financial
reporting in the accounting profession globally
12.promotes good ethical practices
13.IRS - ANSWER Internal Revenue Service
government agency
authorizes the Secretary of the Treasury to set rules and regulations necessary to
enforce the UT tax laws
14.GAO - ANSWER US Government Accountability Office
issues ethics and independence rules that apply to engagements performed
under GAGAS
15.DOL - ANSWER Department of Labor
interpretive bulletin on independence
16.Code of Conduct - ANSWER -assume responsibilities above and beyond
those required by law
-act honorably, even at the sacrifice of personal advantage
17.5. Due Care - ANSWER You should observe the profession's technical and
ethical standards, strive continually to improve competence and the quality
of services, and discharge professional responsibility to the best of your
ability
,18.6. Scope and Nature of Services - ANSWER As a member in public
practice, you should observe the principles of the Code of Professional
Conduct in determining the scope and nature of services to be performed
19.Rules for Members in Public Practice - ANSWER Integrity and Objectivity
Independence
General Standards
Compliance with Standards
Accounting Principles
Acts Discreditable
Fees and Other Types of Remuneration
Advertising and Other Forms of Solicitation
Confidential Information
Form of Organization and Name
20.Rules for Members in Business - ANSWER Integrity and Objectivity
General Standards
Compliance with Standards
Accounting Principles
Acts Discreditable
Other Members
Acts Discreditable
21.Interpretations - ANSWER The code provides interpretations of each of the
rules of conduct. Provides guidelines to members on scope and application.
, Members are required to apply these interpretations unless they can justify
noncompliance.
22.Integrity and Objectivity - ANSWER - maintain objectivity and integrity
- be free of conflicts of interest
- shall not knowingly misrepresent facts or subordinate his or her
judgment to others
Integrity: honest and candid; measured in terms of what is right and just
23.Helping Hands Case Study - ANSWER -an organization that is under
financial duress may have strong incentives to "bend the rules"
-plan was to "temporarily be relieved of debt" until financial statements can be
made and appear good ("goodwill gesture"/legal)
24.It's legal, but is it ethical?
Objections:
-manipulating financial statements is a violation of "integrity and objectivity rule"
regarding false and misleading information
-material changes to financial statements are a form of deceit
-changes could affect user's decision about whether to continue donations
-making change may not break any laws, but it is unethical
Never subordinate your judgment to another person, even if that person is in a
position of authority over you
with Correct Answers
1. State CPA Licensing Boards - ANSWER issues CPA licesnes and oversee
ethical conduct of jurisdiction
2. AICPA - ANSWER American Institute of Certified Public Accountants
3. national professional organization for all CPAs; work with state CPA
societies
4. -PEEC: Professional Ethics Executive Committee promulgates and enforces
ethics and independence rules that apply to all members
5. SEC - ANSWER Securities and Exchange Commission
6. federal agency
7. establishes and enforces accounting and auditing policies
8. PCAOB - ANSWER Public Company Accounting Oversight Board
9. establishes auditing, attestation, quality control, ethics and independence
standards for public company auditors
10.IFAC - ANSWER International Federation of Accountants
,11.develop standards for auditing, education, ethics, and public sector financial
reporting in the accounting profession globally
12.promotes good ethical practices
13.IRS - ANSWER Internal Revenue Service
government agency
authorizes the Secretary of the Treasury to set rules and regulations necessary to
enforce the UT tax laws
14.GAO - ANSWER US Government Accountability Office
issues ethics and independence rules that apply to engagements performed
under GAGAS
15.DOL - ANSWER Department of Labor
interpretive bulletin on independence
16.Code of Conduct - ANSWER -assume responsibilities above and beyond
those required by law
-act honorably, even at the sacrifice of personal advantage
17.5. Due Care - ANSWER You should observe the profession's technical and
ethical standards, strive continually to improve competence and the quality
of services, and discharge professional responsibility to the best of your
ability
,18.6. Scope and Nature of Services - ANSWER As a member in public
practice, you should observe the principles of the Code of Professional
Conduct in determining the scope and nature of services to be performed
19.Rules for Members in Public Practice - ANSWER Integrity and Objectivity
Independence
General Standards
Compliance with Standards
Accounting Principles
Acts Discreditable
Fees and Other Types of Remuneration
Advertising and Other Forms of Solicitation
Confidential Information
Form of Organization and Name
20.Rules for Members in Business - ANSWER Integrity and Objectivity
General Standards
Compliance with Standards
Accounting Principles
Acts Discreditable
Other Members
Acts Discreditable
21.Interpretations - ANSWER The code provides interpretations of each of the
rules of conduct. Provides guidelines to members on scope and application.
, Members are required to apply these interpretations unless they can justify
noncompliance.
22.Integrity and Objectivity - ANSWER - maintain objectivity and integrity
- be free of conflicts of interest
- shall not knowingly misrepresent facts or subordinate his or her
judgment to others
Integrity: honest and candid; measured in terms of what is right and just
23.Helping Hands Case Study - ANSWER -an organization that is under
financial duress may have strong incentives to "bend the rules"
-plan was to "temporarily be relieved of debt" until financial statements can be
made and appear good ("goodwill gesture"/legal)
24.It's legal, but is it ethical?
Objections:
-manipulating financial statements is a violation of "integrity and objectivity rule"
regarding false and misleading information
-material changes to financial statements are a form of deceit
-changes could affect user's decision about whether to continue donations
-making change may not break any laws, but it is unethical
Never subordinate your judgment to another person, even if that person is in a
position of authority over you
