ApCPApinppublicppracticep
avoidpoperating
underpapcodepofpprofessionalpethicspbypchoosingpnot
p
topjoinpeitherpthepAICPAporpanypstatepCPApsociety.
(a) may
(b) maypnotp-pANSWER>>(b)pispcorrect.
CodepofpProfessionalpConduct,pCoverage,psayspthatpnopCPAppracticingppublicpaccountingpmaypavoidpope
ratingpunderpapcodepofpethics.pThepCPApmaypnotpjoinpthepAIpCPAporphisporpherpstatepCPApsocietypandpthe
reforepwouldpnotpbepsubjectptoptheirpcodespofpethics.pThepCPA,phowever,pcannotpavoidpbeingpsubjectptop
hisporpherpstatepboardpofpaccountancy'spcodepofpethics
Whichpcategorypcontainspthepethicalpstandards,papviolationpofpwhichpmakespapmemberpliableptopdiscipl
inarypaction?
(a) EthicspRulings.
(b) InterpretationspofpthepRules.
(c) Rules.p-pANSWER>>(c)pispthepconectpanswer.pCodepofpProfessional
Conduct,pStrncture,psayspthatpinfractionpofpanypofptheprulespmakespapmemberpliableptopdisciplinarypa
ction.
(a) ispwrongpsincepmemberspwhopdepartpfrompthe
guidancepinpethicalprulingspinpsimilarpcircumstances
willpbepaskedptopjustifypsuchpdeparture.pTheypcannot
howeverpbepchargedpwithpviolatingpapruling.
(b) ispalsopwrongpsincepapmemberpcannotpbe
chargedpwithpviolatingpanpinterpretation.pInpapdisciplina1y
hearingpwherepthepmemberpwaspchargedpwith
violatingpaprnle,pthepmemberpwouldphavepthepburdenpofpjustifyingpanypdeparturepfrompinterpretationsp
ofthatprule.
,ThepTrialpBoardpmay,pafterpaphearing,pdoptwopofpthepthreepthingsplistedpbelow.pMarkptheponepthatpthepTrial
Boardpcannotpdo.
p
(a) Suspendpapmember.
(b) Suspendpthepmember'spCPApcertificate.
(c) Expelpapmember.p-pANSWER>>(b)pispthepcorrectpanswer.pCodepofpProfessional
Conduct,pEnforcement,psayspapTrialpBoardpmay
admonish,psuspendporpexpelpapmember.pThepTrial
Boardphaspnopjurisdictionpoverpapmember'spCPA
certificate.
Whichpofpthepfollowingprequirespthatpanypchangespinpth
empbepapprovedpbypthepmemberspofpthepAICPA?
(a) Rulespandpinterpretationspofptheprules.
(b) Principlespandprules.
(c) Principles,prulespandpinterpretationspofptheprules.p-
pANSWER>>(b)pispcorrect.pCodepofpProfessionalpConduct,
Structure,psayspthatpPrinciplespandpRulespmustpbe
approvedpbypthepAIpCPApmembers.
(a) ispwrongpandp...
(pc)pispwrongpsincepinterpretationspareppreparedpandpissuedpbypthepProfessionalpEthicspExecutivepCommi
tteepwithoutpobtainingpapprovalpbypthepmembers.
ThepresultspofpapguiltypfindingpbypapTrialpBoardpwillpb
e:
(a) publishedpbypthepAICPA,pbutpthepmemberp'spnamepwillpnotpbepdisclosed.
, (b) publishedpbypthepAICPA.pandpthepmemberp'spnamepwillpbepdisclosedpifpthepTrialpBoardpvotespt
opdo
so.
(c) publishedpbypthepAICPApwithpthepmemberp's
namepgiven.p-pANSWER>>(c)pispcorrect.pCodepofpProfessionalpConduct,
EnforcementpsayspthatpTrialpBoardpconvictionspmust
beppublishedpwithpthepmember'spnamepdisclosed.
(a) ispthenpwrongpsincepthepnamepmustpbepdisclosed.
(b) ispalsopwrongpsincepthepTrialpBoardpdoespnotphavepthepoptionpofpdecidingpwhetherporpnotpth
epmember'spnamepwillpbepdisclosed.
Anpinterpretationporpethicsprulingpusuallypbecomespeffecti
ve:
(a) thepfirstpdaypofpthepmonthpfollowingpthe
monthpitpisppublishedpinpthepJournalpofpAccountancy.
(b) twopweekspafterpitpisppublishedpinpThepCPA
Letter.
p
(c) theplastpdaypofpthepmonthpinpwhichpitpisp publishedpinpthepJournalpofpAccountancy.p-
ANSWER>>(c)pispcorect.pCodepofpProfessionalpConduct,
Structure,psayspthatpinterpretationspandprulingspare
normallypeffectiveptheplastpdaypofpthepmonthptheypareppublishedpinpthepJournalpofpAccountancy.
(a) andp(b)parepthereforepwrong.
Thepaccountingpprofessionp'sppublicpincludes
(a) Governmentalpagencies.
(b) Creditpgrantors.
(c) Investors.
, (d) Allpofpthepabovep-pANSWER>>(d)pispthepcorrectpanswer.p\Asp(seepArticlepII)pthe
CPA'sppublicpincludespeveryonepthatpreliesponpthem.pThispthenpwouldpinclude
(a) governmentalpagencies,
(b) creditpgrantorspand
(c) investors.
CompliancepwithpthepAICPApCodepofpProfessionalpCond
uctpdependspprimarilypon:
(a) Publicpopinionpandpreinforcementpofpone'spattestationppeers.
(b) Disciplinarypproceedingspwhenpthepcodepis
pviolated.
(c) Member'spunderstandingpthepcodepandpvoluntarypcompliancepwithpit.p-
pANSWER>>(c)pispthepcorrectpanswer.pComposition,pApplicability
andpCompliancepinpthepArticlespsayspthatpcompliancepwithpthepcode,paspwithpallpstandardspinpanpopen
society,pdependspprimarilyponpmemberp'spunderstandingpofpthepcodepandpvoluntarypcompliancepwithpit.
(a) ispwrong.pThispsectionpsayspthatpreinforcementpbypone'sppeerspandppublicpopinionpispsecondary
inpobtainingpcompliancepwithpthepcode.
(b) ispalsopwrongpsincepthispsectionpsayspdisciplinarypproceedingspagainstpthosepthatpviolatepthepcodepare
pthepultimateporpfinalpmethodpofpobtainingpcompliance.
ThepPrinciplespstatepthatpapmemberphaspresponsibilitypt
o:
(a) Colleagues.
(b) Clients.
(c) Theppublic.
(d) Allpofpthepabove.p-pANSWER>>(d)pispcorrect.
ThepPreambleptopthepArticlespsayspthatpmembersphave
avoidpoperating
underpapcodepofpprofessionalpethicspbypchoosingpnot
p
topjoinpeitherpthepAICPAporpanypstatepCPApsociety.
(a) may
(b) maypnotp-pANSWER>>(b)pispcorrect.
CodepofpProfessionalpConduct,pCoverage,psayspthatpnopCPAppracticingppublicpaccountingpmaypavoidpope
ratingpunderpapcodepofpethics.pThepCPApmaypnotpjoinpthepAIpCPAporphisporpherpstatepCPApsocietypandpthe
reforepwouldpnotpbepsubjectptoptheirpcodespofpethics.pThepCPA,phowever,pcannotpavoidpbeingpsubjectptop
hisporpherpstatepboardpofpaccountancy'spcodepofpethics
Whichpcategorypcontainspthepethicalpstandards,papviolationpofpwhichpmakespapmemberpliableptopdiscipl
inarypaction?
(a) EthicspRulings.
(b) InterpretationspofpthepRules.
(c) Rules.p-pANSWER>>(c)pispthepconectpanswer.pCodepofpProfessional
Conduct,pStrncture,psayspthatpinfractionpofpanypofptheprulespmakespapmemberpliableptopdisciplinarypa
ction.
(a) ispwrongpsincepmemberspwhopdepartpfrompthe
guidancepinpethicalprulingspinpsimilarpcircumstances
willpbepaskedptopjustifypsuchpdeparture.pTheypcannot
howeverpbepchargedpwithpviolatingpapruling.
(b) ispalsopwrongpsincepapmemberpcannotpbe
chargedpwithpviolatingpanpinterpretation.pInpapdisciplina1y
hearingpwherepthepmemberpwaspchargedpwith
violatingpaprnle,pthepmemberpwouldphavepthepburdenpofpjustifyingpanypdeparturepfrompinterpretationsp
ofthatprule.
,ThepTrialpBoardpmay,pafterpaphearing,pdoptwopofpthepthreepthingsplistedpbelow.pMarkptheponepthatpthepTrial
Boardpcannotpdo.
p
(a) Suspendpapmember.
(b) Suspendpthepmember'spCPApcertificate.
(c) Expelpapmember.p-pANSWER>>(b)pispthepcorrectpanswer.pCodepofpProfessional
Conduct,pEnforcement,psayspapTrialpBoardpmay
admonish,psuspendporpexpelpapmember.pThepTrial
Boardphaspnopjurisdictionpoverpapmember'spCPA
certificate.
Whichpofpthepfollowingprequirespthatpanypchangespinpth
empbepapprovedpbypthepmemberspofpthepAICPA?
(a) Rulespandpinterpretationspofptheprules.
(b) Principlespandprules.
(c) Principles,prulespandpinterpretationspofptheprules.p-
pANSWER>>(b)pispcorrect.pCodepofpProfessionalpConduct,
Structure,psayspthatpPrinciplespandpRulespmustpbe
approvedpbypthepAIpCPApmembers.
(a) ispwrongpandp...
(pc)pispwrongpsincepinterpretationspareppreparedpandpissuedpbypthepProfessionalpEthicspExecutivepCommi
tteepwithoutpobtainingpapprovalpbypthepmembers.
ThepresultspofpapguiltypfindingpbypapTrialpBoardpwillpb
e:
(a) publishedpbypthepAICPA,pbutpthepmemberp'spnamepwillpnotpbepdisclosed.
, (b) publishedpbypthepAICPA.pandpthepmemberp'spnamepwillpbepdisclosedpifpthepTrialpBoardpvotespt
opdo
so.
(c) publishedpbypthepAICPApwithpthepmemberp's
namepgiven.p-pANSWER>>(c)pispcorrect.pCodepofpProfessionalpConduct,
EnforcementpsayspthatpTrialpBoardpconvictionspmust
beppublishedpwithpthepmember'spnamepdisclosed.
(a) ispthenpwrongpsincepthepnamepmustpbepdisclosed.
(b) ispalsopwrongpsincepthepTrialpBoardpdoespnotphavepthepoptionpofpdecidingpwhetherporpnotpth
epmember'spnamepwillpbepdisclosed.
Anpinterpretationporpethicsprulingpusuallypbecomespeffecti
ve:
(a) thepfirstpdaypofpthepmonthpfollowingpthe
monthpitpisppublishedpinpthepJournalpofpAccountancy.
(b) twopweekspafterpitpisppublishedpinpThepCPA
Letter.
p
(c) theplastpdaypofpthepmonthpinpwhichpitpisp publishedpinpthepJournalpofpAccountancy.p-
ANSWER>>(c)pispcorect.pCodepofpProfessionalpConduct,
Structure,psayspthatpinterpretationspandprulingspare
normallypeffectiveptheplastpdaypofpthepmonthptheypareppublishedpinpthepJournalpofpAccountancy.
(a) andp(b)parepthereforepwrong.
Thepaccountingpprofessionp'sppublicpincludes
(a) Governmentalpagencies.
(b) Creditpgrantors.
(c) Investors.
, (d) Allpofpthepabovep-pANSWER>>(d)pispthepcorrectpanswer.p\Asp(seepArticlepII)pthe
CPA'sppublicpincludespeveryonepthatpreliesponpthem.pThispthenpwouldpinclude
(a) governmentalpagencies,
(b) creditpgrantorspand
(c) investors.
CompliancepwithpthepAICPApCodepofpProfessionalpCond
uctpdependspprimarilypon:
(a) Publicpopinionpandpreinforcementpofpone'spattestationppeers.
(b) Disciplinarypproceedingspwhenpthepcodepis
pviolated.
(c) Member'spunderstandingpthepcodepandpvoluntarypcompliancepwithpit.p-
pANSWER>>(c)pispthepcorrectpanswer.pComposition,pApplicability
andpCompliancepinpthepArticlespsayspthatpcompliancepwithpthepcode,paspwithpallpstandardspinpanpopen
society,pdependspprimarilyponpmemberp'spunderstandingpofpthepcodepandpvoluntarypcompliancepwithpit.
(a) ispwrong.pThispsectionpsayspthatpreinforcementpbypone'sppeerspandppublicpopinionpispsecondary
inpobtainingpcompliancepwithpthepcode.
(b) ispalsopwrongpsincepthispsectionpsayspdisciplinarypproceedingspagainstpthosepthatpviolatepthepcodepare
pthepultimateporpfinalpmethodpofpobtainingpcompliance.
ThepPrinciplespstatepthatpapmemberphaspresponsibilitypt
o:
(a) Colleagues.
(b) Clients.
(c) Theppublic.
(d) Allpofpthepabove.p-pANSWER>>(d)pispcorrect.
ThepPreambleptopthepArticlespsayspthatpmembersphave
