Ethics Final – AICPA Exam 120 Questions with Correct
Answers.
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. - Correct 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. - Correct Answer False, Only for Issuers
The AICPA bylaws require that members adhere to the rules in the Code. - Correct Answer
True
The American Institute of Certified Public Accountants has been the primary ethical rules
for internal auditors. - Correct 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 -
Correct 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. - Correct 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
- Correct Answer true
Members would be violating the Integrity principle if they have inadvertent errors and have
honest differences of opinion while performing their duties. - Correct 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. - Correct 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 - Correct 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. - Correct 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 - Correct 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. - Correct 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. - Correct Answer True
The AICPA Code of Professional Conduct begins with a preface that applies to all
members. - Correct 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. - Correct 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. - Correct Answer True
PCAOB was created by the Sarbanes-Oxley Act of 2002. - Correct Answer True
CPAs who practice in public accounting are required to be members of AICPA. - Correct
Answer False, membership in the AICPA is voluntary
The AICPA Rules of Conduct apply to all professional services performed. - Correct
Answer False, except when working of the rule indicates otherwise
Answers.
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. - Correct 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. - Correct Answer False, Only for Issuers
The AICPA bylaws require that members adhere to the rules in the Code. - Correct Answer
True
The American Institute of Certified Public Accountants has been the primary ethical rules
for internal auditors. - Correct 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 -
Correct 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. - Correct 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
- Correct Answer true
Members would be violating the Integrity principle if they have inadvertent errors and have
honest differences of opinion while performing their duties. - Correct 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. - Correct 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 - Correct 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. - Correct 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 - Correct 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. - Correct 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. - Correct Answer True
The AICPA Code of Professional Conduct begins with a preface that applies to all
members. - Correct 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. - Correct 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. - Correct Answer True
PCAOB was created by the Sarbanes-Oxley Act of 2002. - Correct Answer True
CPAs who practice in public accounting are required to be members of AICPA. - Correct
Answer False, membership in the AICPA is voluntary
The AICPA Rules of Conduct apply to all professional services performed. - Correct
Answer False, except when working of the rule indicates otherwise
