CPA Ethics Exam/ AICPA Ethics Rules & CPA Exam WITH
COMPLETE SOLUTION NEWEST RATED A+ 2025/2026
UPDATED 100% VERIFIED CORRECT
Which category contains the ethical standards, a
viola on of which makes a member liable to disciplinary
ac on?
(a) Ethics Rulings.
(b) Interpreta ons of the Rules.
(c) Rules. - Ans (c) is the conect answer. Code of Professional
Conduct, Strncture, says that infrac on of any of the rules makes a member liable to disciplinary
ac on.
(a) is wrong since members who depart from the
guidance in ethical rulings in similar circumstances
will be asked to jus fy such departure. They cannot
however be charged with viola ng a ruling.
(b) is also wrong since a member cannot be
charged with viola ng an interpreta on. In a disciplina1y
hearing where the member was charged with
viola ng a rnle, the member would have the burden of jus fying any departure from
interpreta ons o*hat rule.
The Trial Board may, a*er a hearing, do two of the
three things listed below. Mark the one that the Trial
Board cannot do.
(a) Suspend a member.
,(b) Suspend the member's CPA cer ficate.
( c) Expel a member. - Ans (b) is the correct answer. Code of Professional
Conduct, Enforcement, says a Trial Board may
admonish, suspend or expel a member. The Trial
Board has no jurisdic on over a member's CPA
cer ficate.
Which of the following requires that any changes in
them be approved by the members of the AICPA?
(a) Rules and interpreta ons of the rules.
(b) Principles and rules.
(c) Principles, rules and interpreta ons of the rules. - Ans (b) is correct. Code of Professional
Conduct,
Structure, says that Principles and Rules must be
approved by the AI CPA members.
(a) is wrong and ...
( c) is wrong since interpreta ons are prepared and issued by the Professional Ethics Execu ve
Commi1ee without obtaining approval by the members.
The results of a guilty finding by a Trial Board will
be:
(a) published by the AICPA, but the member 's name will not be disclosed.
(b) published by the AICPA. and the member 's name will be disclosed if the Trial Board votes to
do
so.
(c) published by the AICPA with the member 's
name given. - Ans (c) is correct. Code of Professional Conduct,
,Enforcement says that Trial Board convic ons must
be published with the member's name disclosed.
(a) is then wrong since the name must be disclosed.
(b) is also wrong since the Trial Board does not have the op on of deciding whether or not the
member's name will be disclosed.
An interpreta on or ethics ruling usually becomes
effec ve:
(a) the first day of the month following the
month it is published in the Journal of Accountancy.
(b) two weeks a*er it is published in The CPA
Le1er.
(c) the last day of the month in which it is
published in the Journal of Accountancy. - Ans (c) is corect. Code of Professional Conduct,
Structure, says that interpreta ons and rulings are
normally effec ve the last day of the month they are published in the Journal of Accountancy.
(a) and (b) are therefore wrong.
A CPA in public prac ce ______________ avoid opera ng
under a code of professional ethics by choosing not
to join either the AICPA or any state CPA society.
(a) may
(b) may not - Ans (b) is correct. Code of Professional Conduct, Coverage, says that no CPA
prac cing public accoun ng may avoid opera ng under a code of ethics. The CPA may not join
the AI CPA or his or her state CPA society and therefore would not be subject to their codes of
ethics. The CPA, however, cannot avoid being subject to his or her state board of accountancy's
code of ethics
, The accoun ng profession 's public includes
(a) Governmental agencies.
(b) Credit grantors.
(c) Investors.
(d) All of the above - Ans (d) is the correct answer. As (see Ar cle II) the
CPA's public includes everyone that relies on them. This then would include
(a) governmental agencies,
(b) credit grantors and
(c) investors.
Compliance with the AICPA Code of Professional
Conduct depends primarily on:
(a) Public opinion and reinforcement of one's a1esta on peers.
(b) Disciplinary proceedings when the code is
violated.
(c) Member's understanding the code and voluntary compliance with it. - Ans (c) is the correct
answer. Composi on, Applicability
and Compliance in the Ar cles says that compliance with the code, as with all standards in an
open society, depends primarily on member 's understanding of the code and voluntary
compliance with it.
(a) is wrong. This sec on says that reinforcement by one's peers and public opinion is secondary
in obtaining compliance with the code.
(b) is also wrong since this sec on says disciplinary proceedings against those that violate the
code are the ul mate or final method of obtaining compliance.
The Principles state that a member has responsibility
COMPLETE SOLUTION NEWEST RATED A+ 2025/2026
UPDATED 100% VERIFIED CORRECT
Which category contains the ethical standards, a
viola on of which makes a member liable to disciplinary
ac on?
(a) Ethics Rulings.
(b) Interpreta ons of the Rules.
(c) Rules. - Ans (c) is the conect answer. Code of Professional
Conduct, Strncture, says that infrac on of any of the rules makes a member liable to disciplinary
ac on.
(a) is wrong since members who depart from the
guidance in ethical rulings in similar circumstances
will be asked to jus fy such departure. They cannot
however be charged with viola ng a ruling.
(b) is also wrong since a member cannot be
charged with viola ng an interpreta on. In a disciplina1y
hearing where the member was charged with
viola ng a rnle, the member would have the burden of jus fying any departure from
interpreta ons o*hat rule.
The Trial Board may, a*er a hearing, do two of the
three things listed below. Mark the one that the Trial
Board cannot do.
(a) Suspend a member.
,(b) Suspend the member's CPA cer ficate.
( c) Expel a member. - Ans (b) is the correct answer. Code of Professional
Conduct, Enforcement, says a Trial Board may
admonish, suspend or expel a member. The Trial
Board has no jurisdic on over a member's CPA
cer ficate.
Which of the following requires that any changes in
them be approved by the members of the AICPA?
(a) Rules and interpreta ons of the rules.
(b) Principles and rules.
(c) Principles, rules and interpreta ons of the rules. - Ans (b) is correct. Code of Professional
Conduct,
Structure, says that Principles and Rules must be
approved by the AI CPA members.
(a) is wrong and ...
( c) is wrong since interpreta ons are prepared and issued by the Professional Ethics Execu ve
Commi1ee without obtaining approval by the members.
The results of a guilty finding by a Trial Board will
be:
(a) published by the AICPA, but the member 's name will not be disclosed.
(b) published by the AICPA. and the member 's name will be disclosed if the Trial Board votes to
do
so.
(c) published by the AICPA with the member 's
name given. - Ans (c) is correct. Code of Professional Conduct,
,Enforcement says that Trial Board convic ons must
be published with the member's name disclosed.
(a) is then wrong since the name must be disclosed.
(b) is also wrong since the Trial Board does not have the op on of deciding whether or not the
member's name will be disclosed.
An interpreta on or ethics ruling usually becomes
effec ve:
(a) the first day of the month following the
month it is published in the Journal of Accountancy.
(b) two weeks a*er it is published in The CPA
Le1er.
(c) the last day of the month in which it is
published in the Journal of Accountancy. - Ans (c) is corect. Code of Professional Conduct,
Structure, says that interpreta ons and rulings are
normally effec ve the last day of the month they are published in the Journal of Accountancy.
(a) and (b) are therefore wrong.
A CPA in public prac ce ______________ avoid opera ng
under a code of professional ethics by choosing not
to join either the AICPA or any state CPA society.
(a) may
(b) may not - Ans (b) is correct. Code of Professional Conduct, Coverage, says that no CPA
prac cing public accoun ng may avoid opera ng under a code of ethics. The CPA may not join
the AI CPA or his or her state CPA society and therefore would not be subject to their codes of
ethics. The CPA, however, cannot avoid being subject to his or her state board of accountancy's
code of ethics
, The accoun ng profession 's public includes
(a) Governmental agencies.
(b) Credit grantors.
(c) Investors.
(d) All of the above - Ans (d) is the correct answer. As (see Ar cle II) the
CPA's public includes everyone that relies on them. This then would include
(a) governmental agencies,
(b) credit grantors and
(c) investors.
Compliance with the AICPA Code of Professional
Conduct depends primarily on:
(a) Public opinion and reinforcement of one's a1esta on peers.
(b) Disciplinary proceedings when the code is
violated.
(c) Member's understanding the code and voluntary compliance with it. - Ans (c) is the correct
answer. Composi on, Applicability
and Compliance in the Ar cles says that compliance with the code, as with all standards in an
open society, depends primarily on member 's understanding of the code and voluntary
compliance with it.
(a) is wrong. This sec on says that reinforcement by one's peers and public opinion is secondary
in obtaining compliance with the code.
(b) is also wrong since this sec on says disciplinary proceedings against those that violate the
code are the ul mate or final method of obtaining compliance.
The Principles state that a member has responsibility
