AICPA ETHICS CODE EXAM | (RATIONALES
AVAILABLE) NEWEST ACTUAL ACCURATE
EXAM COMPLETE QUESTIONS AND
DETAILED VERIFIED ANSWERS GRADED A+
| 100% VERIFIED | 2024 UPDATE!!!
Which phrase is used by the Code of Professional Conduct to
describe integrity?
A. Forceful advocate of the client's position
B. Valued. business adviser to the client
C. Willing to do what it takes to achieve a proper outcome
D. Candid, within the constraints of client confidentiality -
✔✔✔ Correct Answer > D. Candid, within the constraints of
client confidentiality
We learned in a previous lesson that integrity means being
honest or "candid" - the opposite of being sneaky or
misleading. Integrity is doing the right thing being honest even
if no one is necessarily holding you to that standard. However,
as professionals, we also need to be concerned about client
confidentiality. We shouldn't be so honest that we disclose any
information about our clients that is not public. So the best
answer is to be candid, within the constraints of client
,confidentiality. The other answer choices do not necessarily
describe someone with integrity.
Status Photos wants to engage Daily CPAs as their auditors for
the year ended 12/31/18. What must happen under PCAOB
Rule 3526?
A. Daily must explicitly state that all covered persons in the firm
have complied with relevant ethical requirements
B. Daily must provide a list of all firm members who met be
independent of client
C. Daily must describe in writing all the relationships with
Status Photos that may reasonably be expected to affect their
independence
D. Daily must provide the results of independence
investigations for all persons who may work on the
engagement - ✔✔✔ Correct Answer > C. Daily must describe
in writing all the relationships with Status Photos that may
reasonably be expected to affect their independence
Auditors are required to communicate in writing with Status
Photo's audit committee a description of all relationships that
Daily believes may reasonably be though to affect their
independence. This provides the audit committee an
opportunity to prove their input on whether or not they believe
the matter would impact the firm's independence
, A manager obtained her MBA prior to joining the firm 2013.
While going to school, she obtained student loans under the
lenders normal terms and conditions that are not material to
her net worth. She is a covered member of the lender that
made the loan. Does this loan impair independence?
A. No, because the money way used to obtain a student loan
B. No, because the loan is not material to the managers net
worth and was obtained prior to her joining the firm
C. Yes, if the manager obtained it within 5 years of joining the
firm
D. Yes, because the manager is a covered member - ✔✔✔
Correct Answer > B. No, because the loan is not material to
the manager's net worth and was obtained prior to her joining
the firm
A grandfathered and or covered member loan does not impair
independence if the loan is immaterial to her net worth and she
meets the other requirements for grandfathering. Certain
grandfathered loans are an exception to the independence
rules (see slide 14).
Linda has two young children and is a covered member with
respect to ABC Company. When will her children no longer be
considered immediate family?
AVAILABLE) NEWEST ACTUAL ACCURATE
EXAM COMPLETE QUESTIONS AND
DETAILED VERIFIED ANSWERS GRADED A+
| 100% VERIFIED | 2024 UPDATE!!!
Which phrase is used by the Code of Professional Conduct to
describe integrity?
A. Forceful advocate of the client's position
B. Valued. business adviser to the client
C. Willing to do what it takes to achieve a proper outcome
D. Candid, within the constraints of client confidentiality -
✔✔✔ Correct Answer > D. Candid, within the constraints of
client confidentiality
We learned in a previous lesson that integrity means being
honest or "candid" - the opposite of being sneaky or
misleading. Integrity is doing the right thing being honest even
if no one is necessarily holding you to that standard. However,
as professionals, we also need to be concerned about client
confidentiality. We shouldn't be so honest that we disclose any
information about our clients that is not public. So the best
answer is to be candid, within the constraints of client
,confidentiality. The other answer choices do not necessarily
describe someone with integrity.
Status Photos wants to engage Daily CPAs as their auditors for
the year ended 12/31/18. What must happen under PCAOB
Rule 3526?
A. Daily must explicitly state that all covered persons in the firm
have complied with relevant ethical requirements
B. Daily must provide a list of all firm members who met be
independent of client
C. Daily must describe in writing all the relationships with
Status Photos that may reasonably be expected to affect their
independence
D. Daily must provide the results of independence
investigations for all persons who may work on the
engagement - ✔✔✔ Correct Answer > C. Daily must describe
in writing all the relationships with Status Photos that may
reasonably be expected to affect their independence
Auditors are required to communicate in writing with Status
Photo's audit committee a description of all relationships that
Daily believes may reasonably be though to affect their
independence. This provides the audit committee an
opportunity to prove their input on whether or not they believe
the matter would impact the firm's independence
, A manager obtained her MBA prior to joining the firm 2013.
While going to school, she obtained student loans under the
lenders normal terms and conditions that are not material to
her net worth. She is a covered member of the lender that
made the loan. Does this loan impair independence?
A. No, because the money way used to obtain a student loan
B. No, because the loan is not material to the managers net
worth and was obtained prior to her joining the firm
C. Yes, if the manager obtained it within 5 years of joining the
firm
D. Yes, because the manager is a covered member - ✔✔✔
Correct Answer > B. No, because the loan is not material to
the manager's net worth and was obtained prior to her joining
the firm
A grandfathered and or covered member loan does not impair
independence if the loan is immaterial to her net worth and she
meets the other requirements for grandfathering. Certain
grandfathered loans are an exception to the independence
rules (see slide 14).
Linda has two young children and is a covered member with
respect to ABC Company. When will her children no longer be
considered immediate family?
