Page 1 of 235
Certified Public Accountant Practice (CPA) Exam
QUESTIONS AND CORRECT DETAILED SOLUTIONS
WITH RATIONALES LATEST UPDATED VERSION JUST
RELEASED RECENTLY
Question: Which of the following does not refer to the practice of corporate accountability?
A. It is driven by regulation.
B. It involves reports highlighting social and environmental performance.
C. It involves informing stakeholders of anything they wish to be informed about.
D. It illustrates the importance of an understanding of principles of governance for accountants.
- ANSWER✔✔C. It involves informing stakeholders of anything they wish to be informed about.
Question: Which of the following applies to social sustainability?
A. It is the role of government.
B. It is facilitated through increasing globalisation.
C. It involves addressing the needs of all relevant existing stakeholders.
, Page 2 of 235
D. It is only a valid concern in the place at which the primary activity is being carried out. -
ANSWER✔✔B is correct because increasing globalisation has enabled greater awareness of and
hence accountability of organisations, for example as discussed
in the study guide with reference to the collapse of the Rana Plaza building in Bangladesh.
Question: The World Business Council for Sustainable Development (WBCSD) has emphasised
that environmental issues have an impact on a company's profitability.
Which of the following is not an example of these issues?
A. The additional costs associated with going green
B. Plant write-offs as a result of changes to clean production capacity
C. Clean-up costs or fines for non-compliance with environmental regulations
D. Revenue effects of market growth or decline due to changes in customer preferences for
environmentally sustainable products - ANSWER✔✔A. The additional costs associated with
going green
Question: Which of the following best describes how CSR reporting can help with reducing
risk?
, Page 3 of 235
A. CSR reporting allows users to identify, assess and manage these risks.
B. CSR reporting, in itself, is a clear indication a company is alert to the risks.
C. once CSR risks are disclosed the company has fulfilled its duty to accountability.
D. once the risks have been disclosed it becomes the investor's responsibility to invest in the
company recognising the risks involved. - ANSWER✔✔A. CSR reporting allows users to identify,
assess and manage these risks.
Q:Which of the following is not an attribute of a profession?
A. Extensive education process
B. Existence of a governing body
C. Application of professional scepticism
D. Systematic body of theory and knowledge - ANSWER✔✔C. Application of professional
scepticism
Question: Which of the following best describes the 'traditional' or 'functional' view of a
professional?
I Professionals are law abiding citizens.
, Page 4 of 235
II Professionals behave in an ethical and appropriate manner.
III Professionals have a significant level of training and competence.
IV Professionals apply their skill and judgment in areas of importance.
A. I and II only
B. II and III only
C. I, III and IV only
D. II, III and IV only - ANSWER✔✔D. II, III and IV only
Question: Which of the following is not one of 'the four Es' that form the ideals of the
accounting profession as identified by Carnegie and Napier (2010)?
A. Expertise
B. Education
C. Enlightenment
D. Entrepreneurship - ANSWER✔✔C. Enlightenment
Question: Which one of the following is not a perspective of a service ideal?
Certified Public Accountant Practice (CPA) Exam
QUESTIONS AND CORRECT DETAILED SOLUTIONS
WITH RATIONALES LATEST UPDATED VERSION JUST
RELEASED RECENTLY
Question: Which of the following does not refer to the practice of corporate accountability?
A. It is driven by regulation.
B. It involves reports highlighting social and environmental performance.
C. It involves informing stakeholders of anything they wish to be informed about.
D. It illustrates the importance of an understanding of principles of governance for accountants.
- ANSWER✔✔C. It involves informing stakeholders of anything they wish to be informed about.
Question: Which of the following applies to social sustainability?
A. It is the role of government.
B. It is facilitated through increasing globalisation.
C. It involves addressing the needs of all relevant existing stakeholders.
, Page 2 of 235
D. It is only a valid concern in the place at which the primary activity is being carried out. -
ANSWER✔✔B is correct because increasing globalisation has enabled greater awareness of and
hence accountability of organisations, for example as discussed
in the study guide with reference to the collapse of the Rana Plaza building in Bangladesh.
Question: The World Business Council for Sustainable Development (WBCSD) has emphasised
that environmental issues have an impact on a company's profitability.
Which of the following is not an example of these issues?
A. The additional costs associated with going green
B. Plant write-offs as a result of changes to clean production capacity
C. Clean-up costs or fines for non-compliance with environmental regulations
D. Revenue effects of market growth or decline due to changes in customer preferences for
environmentally sustainable products - ANSWER✔✔A. The additional costs associated with
going green
Question: Which of the following best describes how CSR reporting can help with reducing
risk?
, Page 3 of 235
A. CSR reporting allows users to identify, assess and manage these risks.
B. CSR reporting, in itself, is a clear indication a company is alert to the risks.
C. once CSR risks are disclosed the company has fulfilled its duty to accountability.
D. once the risks have been disclosed it becomes the investor's responsibility to invest in the
company recognising the risks involved. - ANSWER✔✔A. CSR reporting allows users to identify,
assess and manage these risks.
Q:Which of the following is not an attribute of a profession?
A. Extensive education process
B. Existence of a governing body
C. Application of professional scepticism
D. Systematic body of theory and knowledge - ANSWER✔✔C. Application of professional
scepticism
Question: Which of the following best describes the 'traditional' or 'functional' view of a
professional?
I Professionals are law abiding citizens.
, Page 4 of 235
II Professionals behave in an ethical and appropriate manner.
III Professionals have a significant level of training and competence.
IV Professionals apply their skill and judgment in areas of importance.
A. I and II only
B. II and III only
C. I, III and IV only
D. II, III and IV only - ANSWER✔✔D. II, III and IV only
Question: Which of the following is not one of 'the four Es' that form the ideals of the
accounting profession as identified by Carnegie and Napier (2010)?
A. Expertise
B. Education
C. Enlightenment
D. Entrepreneurship - ANSWER✔✔C. Enlightenment
Question: Which one of the following is not a perspective of a service ideal?
