1/20/25, 3:42 PM
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WGU D550 Pre-Assessment Ethics For Accountants (PRYC)
Questions with 100% Correct Answers | Verified | Latest
Update
Attempt #1
Status: Passed
1. Which scenario exemplifies a violation of the Acts Discreditable Rule?
YOUR CORRECT
ANSWER ANSWER
A CPA firm assigns a CPA who does not have any experience in
governmental audits to a public school audit.
A CPA leaks suspicious entries from a client's books on a public
forum to ask the opinion of other professionals.
A CPA ignores a few entries in a client's financial statements that
do not comply with the GAAP guidelines.
A CPA helps prepare the financial statements of a company that is
also their attest client.
2. During an audit, a CPA finds some questionable accounting practices and brings them to the
attention of the company's CFO. The CFO hints that the accounting firm will be fired unless the CPA
signs off on a clean audit report. The CPA refuses and takes the matter to the CPA firm's senior
management.
Which AICPA threat to independence is the CPA minimizing?
YOUR CORRECT
ANSWER ANSWER
Financial self-interest
Undue influence
Advocacy
Management participation
3. A CPA receives a gift from a client in appreciation of completing the audit ahead of time. The CPA's
firm does not have a clear policy addressing acceptance of gifts from clients.
What should the CPA do according to the AICPA Code on gifts and entertainment?
Accessibility Policy Accessibility Settings
1/12
, 1/20/25, 3:42 PM WGU Student Portal
YOUR CORRECT
ANSWER ANSWER
Accept the gift if the firm's policy does not expressly prohibit it.
Ask the client to present it to the CPA firm rather than to the CPA
alone.
Evaluate whether the gift will make a reasonable observer
suspicious.
Request the client to present the gift few weeks later.
4. A CPA firm provides two types of services to a client: bookkeeping and tax services. The firm is
accused of violating the Independence Rule under the AICPA Code.
Has the CPA firm in fact violated the Independence Rule?
YOUR CORRECT
ANSWER ANSWER
Yes, because the firm has created a familiarity threat
No, because firm assigns different CPAs for different services
Yes, because the firm has jeopardized the public interest
No, because the client is the main beneficiary of the services
5. A CPA recommends a software program to a nonattest client that can help with their bookkeeping
needs. The CPA will earn a commission from the software company if the client goes ahead with the
purchase.
What should the CPA do to meet their ethical obligation according to the AICPA Code?
YOUR CORRECT
ANSWER ANSWER
Terminate the engagement before making the recommendation.
Disclose the commission to the client when making the
recommendation.
Do nothing, as there is no obligation in the case of a nonattest
client.
Forgo the commission when recommending the program to any
client.
Accessibility Policy Accessibility Settings
2/12
Help Articles
WGU D550 Pre-Assessment Ethics For Accountants (PRYC)
Questions with 100% Correct Answers | Verified | Latest
Update
Attempt #1
Status: Passed
1. Which scenario exemplifies a violation of the Acts Discreditable Rule?
YOUR CORRECT
ANSWER ANSWER
A CPA firm assigns a CPA who does not have any experience in
governmental audits to a public school audit.
A CPA leaks suspicious entries from a client's books on a public
forum to ask the opinion of other professionals.
A CPA ignores a few entries in a client's financial statements that
do not comply with the GAAP guidelines.
A CPA helps prepare the financial statements of a company that is
also their attest client.
2. During an audit, a CPA finds some questionable accounting practices and brings them to the
attention of the company's CFO. The CFO hints that the accounting firm will be fired unless the CPA
signs off on a clean audit report. The CPA refuses and takes the matter to the CPA firm's senior
management.
Which AICPA threat to independence is the CPA minimizing?
YOUR CORRECT
ANSWER ANSWER
Financial self-interest
Undue influence
Advocacy
Management participation
3. A CPA receives a gift from a client in appreciation of completing the audit ahead of time. The CPA's
firm does not have a clear policy addressing acceptance of gifts from clients.
What should the CPA do according to the AICPA Code on gifts and entertainment?
Accessibility Policy Accessibility Settings
1/12
, 1/20/25, 3:42 PM WGU Student Portal
YOUR CORRECT
ANSWER ANSWER
Accept the gift if the firm's policy does not expressly prohibit it.
Ask the client to present it to the CPA firm rather than to the CPA
alone.
Evaluate whether the gift will make a reasonable observer
suspicious.
Request the client to present the gift few weeks later.
4. A CPA firm provides two types of services to a client: bookkeeping and tax services. The firm is
accused of violating the Independence Rule under the AICPA Code.
Has the CPA firm in fact violated the Independence Rule?
YOUR CORRECT
ANSWER ANSWER
Yes, because the firm has created a familiarity threat
No, because firm assigns different CPAs for different services
Yes, because the firm has jeopardized the public interest
No, because the client is the main beneficiary of the services
5. A CPA recommends a software program to a nonattest client that can help with their bookkeeping
needs. The CPA will earn a commission from the software company if the client goes ahead with the
purchase.
What should the CPA do to meet their ethical obligation according to the AICPA Code?
YOUR CORRECT
ANSWER ANSWER
Terminate the engagement before making the recommendation.
Disclose the commission to the client when making the
recommendation.
Do nothing, as there is no obligation in the case of a nonattest
client.
Forgo the commission when recommending the program to any
client.
Accessibility Policy Accessibility Settings
2/12
