1
AICPA
AICPA ETHICS FINAL EXAM QUESTIONS WITH
CORRECT VERIFIED ANSWERS LATEST UPDATE
(2025/2026) GUARANTEED PASS
Which is not considered an attest engagement under the AICPA
independence rules? - ANS ✓Financial planning
On October 11, 2021, ROC Accountants signed an engagement letter to
begin auditing XYZ Corporations for the 12-month period ended December
21, 2021. Audit planning will begin on November 4, 2021. What is the
earliest date on which ROC would be required to be independent of XYZ? -
ANS ✓January 1, 2021
A two-office firm, with one office in Norman and another in Stillwater, has
an audit client that sells medical equipment. The lead audit partner for this
client is in the Stillwater office. Stock holdings in the client by which person
would not impair independence? - ANS ✓A staff person in the Norman office
who will provide no services to the client
Independence in appearance means - ANS ✓The threats to the independence
of the CPA are at an acceptable level in the eyes of a "reasonable and informed
third party"
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? - ANS ✓When they are no longer dependents
Doris George is a covered member with respect to Dorian Inc. Who must
also comply with the independence rules as an immediate family member?
- ANS ✓Doris's friend Ana- Doris provides over half of Ana's financial support
Under AICPA rules, the employment of your spousal equivalent at an audit
client would generally impair your independence if her or she was
employed as - ANS ✓Controller
AICPA ETHICS
, 2
AICPA
A covered member's direct financial interest in a client does not impair the
member's independence as long as the interest is immaterial to the covered
member's personal wealth. - ANS ✓False
Which of the following is not considered an "immediate" family member? -
ANS ✓Father of the covered member
Anthony is a member of the engagement team performing an audit of XYZ.
During the engagement, the president of XYZ approaches Anthony and
offers him the position of CFO at the company. Anthony is considering the
offer. What safeguards do the independence rules require Anthony to
apply? - ANS ✓Remove himself from the engagement team until the offer is
rejected
A new staff accountant obtains an automobile loan under normal terms and
conditions from an audit client to purchase a BMW sports car. The car loan
is material to his net worth and is fully collateralized. He is a covered
member of the lender. Did this loan impair independence? - ANS ✓No,
because it is fully collateralized (secured) by the automobile
An audit partner obtained a home mortgage before becoming a covered
member with respect to Allied Banking Company which provided the
mortgage. This is a secured loan (protected by collateral). Is independence
impaired? - ANS ✓No, because this meets the requirements for a Grandfathered
Loan, so its permitted
Generally, a covered member cannot loan money to a. client or get a loan
from a client - ANS ✓True
All of the following must be done to "disassociate" with a client except - ANS
✓Performing a 3-year cooling off period from the client
When performing nonattest services for clients, which of these is the CPA's
(AICPA member's) responsibility? - ANS ✓Establish an understanding with the
client as to the services to be performed
Rogers CPA is engaged to perform bookkeeping services (a nonattest
service) for an attest client. Which activity will impair Roger's
independence? - ANS ✓supervise the client's employees as they perform their
normal activities
AICPA ETHICS
AICPA
AICPA ETHICS FINAL EXAM QUESTIONS WITH
CORRECT VERIFIED ANSWERS LATEST UPDATE
(2025/2026) GUARANTEED PASS
Which is not considered an attest engagement under the AICPA
independence rules? - ANS ✓Financial planning
On October 11, 2021, ROC Accountants signed an engagement letter to
begin auditing XYZ Corporations for the 12-month period ended December
21, 2021. Audit planning will begin on November 4, 2021. What is the
earliest date on which ROC would be required to be independent of XYZ? -
ANS ✓January 1, 2021
A two-office firm, with one office in Norman and another in Stillwater, has
an audit client that sells medical equipment. The lead audit partner for this
client is in the Stillwater office. Stock holdings in the client by which person
would not impair independence? - ANS ✓A staff person in the Norman office
who will provide no services to the client
Independence in appearance means - ANS ✓The threats to the independence
of the CPA are at an acceptable level in the eyes of a "reasonable and informed
third party"
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? - ANS ✓When they are no longer dependents
Doris George is a covered member with respect to Dorian Inc. Who must
also comply with the independence rules as an immediate family member?
- ANS ✓Doris's friend Ana- Doris provides over half of Ana's financial support
Under AICPA rules, the employment of your spousal equivalent at an audit
client would generally impair your independence if her or she was
employed as - ANS ✓Controller
AICPA ETHICS
, 2
AICPA
A covered member's direct financial interest in a client does not impair the
member's independence as long as the interest is immaterial to the covered
member's personal wealth. - ANS ✓False
Which of the following is not considered an "immediate" family member? -
ANS ✓Father of the covered member
Anthony is a member of the engagement team performing an audit of XYZ.
During the engagement, the president of XYZ approaches Anthony and
offers him the position of CFO at the company. Anthony is considering the
offer. What safeguards do the independence rules require Anthony to
apply? - ANS ✓Remove himself from the engagement team until the offer is
rejected
A new staff accountant obtains an automobile loan under normal terms and
conditions from an audit client to purchase a BMW sports car. The car loan
is material to his net worth and is fully collateralized. He is a covered
member of the lender. Did this loan impair independence? - ANS ✓No,
because it is fully collateralized (secured) by the automobile
An audit partner obtained a home mortgage before becoming a covered
member with respect to Allied Banking Company which provided the
mortgage. This is a secured loan (protected by collateral). Is independence
impaired? - ANS ✓No, because this meets the requirements for a Grandfathered
Loan, so its permitted
Generally, a covered member cannot loan money to a. client or get a loan
from a client - ANS ✓True
All of the following must be done to "disassociate" with a client except - ANS
✓Performing a 3-year cooling off period from the client
When performing nonattest services for clients, which of these is the CPA's
(AICPA member's) responsibility? - ANS ✓Establish an understanding with the
client as to the services to be performed
Rogers CPA is engaged to perform bookkeeping services (a nonattest
service) for an attest client. Which activity will impair Roger's
independence? - ANS ✓supervise the client's employees as they perform their
normal activities
AICPA ETHICS
