Ethics Final - AICPA
1. Generally, ethical dilemmas are not routine. Therefore, there is no way
that an individual can be prepared or informed for a problem ahead of time.:
False, It is important that you do your homework and understand how to protect
yourself and your employer. This will give you a "head's up" when you face
potential ethical dilemmas
2. PCAOB set auditing, quality control, ethics, independence and other
standards relating to the preparation of audit reports.: False, Only for Issuers
3. The AICPA bylaws require that members adhere to the rules in the Code.:
True
4. The American Institute of Certified Public Accountants has been the
primary ethical rules for internal auditors.: False
5. Members employed by others to prepare financial statements or to
perform auditing must adhere to the objectivity and independence
principle in the AICPA Code of Conduct: False, They are charged with the
same responsibility for objectivity as members in public practice
6. The AICPA Code of Professional Conduct derives its authority from
specific federal legislation.: False, The AICPA Code of Professional Conduct
derives its authority from the Bylaws of the AICPA.
7. An ethical dilemma is defined as a situation where two or more "right"
values are in conflict: true
8. Members would be violating the Integrity principle if they have inadvertent
errors and have honest differences of opinion while performing their
duties.: False, Integrity can accommodate the inadvertent error and honest
difference of opinion; it cannot accommodate deceit or subordination of
principles.
9. AICPA Interpretations limit the scope and application of the rules.: False,
The interpretations of the rules of conduct provide guidelines about the scope
and application of the rules but are not intended to limit such scope or
application
10. The AICPA Code of Professional Conduct provides practical guidance to
only members in public practice: False, The AICPA Code provides practice
guidance for all members.
11. Under the Rules of Professional Conduct promulgated under the Texas
Public Accountancy Act, all of the rules of professional conduct shall
apply to and must be observed by a certificate or registration holder
engaged in the client practice of public accountancy.: True, Correct under
Rule 501.53(a), Applicability of Rules of Professional Conduct.
, Ethics Final - AICPA
12. Integrity as defined in the AICPA Code of Conduct is an element of
character fundamental to professional recognition: True
13. The characteristics common to all profession include existence of a
complex body of knowledge and acknowledgement of a responsibility to
serve the client.: False, responsibility to serve the public
14. Membership in the AICPA is voluntary, but by accepting membership, a
CPA assumes an obligation of self-discipline and agrees to adhere to the
Code.: True
15. The AICPA Code of Professional Conduct begins with a preface that
applies to all members.: True
16. The Responsibilities principle of the AICPA Code of Conduct requires that
service and public trust not be subordinated to personal gain and
advantage.: False, This is integrity
17. The AICPA Code of Professional Conduct provides assurance to clients
and to the public that the professional intends to maintain high
standards.: True
18. PCAOB was created by the Sarbanes-Oxley Act of 2002.: True
19. CPAs who practice in public accounting are required to be members of
AICPA.: False, membership in the AICPA is voluntary
20. The AICPA Rules of Conduct apply to all professional services
performed.-
: False, except when working of the rule indicates otherwise
21. Integrity is the quality from which public trust derives and the benchmark
against which a member must ultimately test all decisions.: True
22. Objectivity is measured in terms of what is right and just.: False, This is
integrity
23. Providing tax services to both parties involved in a divorce proceeding
would not be viewed as impairing a CPA's objectivity.: False, This would be
considered a conflict of interest
24. CPAs employed by others to prepare financial statements or to perform
internal auditing, tax, or consulting services are charged with the same
responsibility for objectivity as those in public practice.: True
25. A conflict of interest exists if a member in public practice provides
services to a company that is a major competitor of a company in which
the CPA has a position of influence.: True
1. Generally, ethical dilemmas are not routine. Therefore, there is no way
that an individual can be prepared or informed for a problem ahead of time.:
False, It is important that you do your homework and understand how to protect
yourself and your employer. This will give you a "head's up" when you face
potential ethical dilemmas
2. PCAOB set auditing, quality control, ethics, independence and other
standards relating to the preparation of audit reports.: False, Only for Issuers
3. The AICPA bylaws require that members adhere to the rules in the Code.:
True
4. The American Institute of Certified Public Accountants has been the
primary ethical rules for internal auditors.: False
5. Members employed by others to prepare financial statements or to
perform auditing must adhere to the objectivity and independence
principle in the AICPA Code of Conduct: False, They are charged with the
same responsibility for objectivity as members in public practice
6. The AICPA Code of Professional Conduct derives its authority from
specific federal legislation.: False, The AICPA Code of Professional Conduct
derives its authority from the Bylaws of the AICPA.
7. An ethical dilemma is defined as a situation where two or more "right"
values are in conflict: true
8. Members would be violating the Integrity principle if they have inadvertent
errors and have honest differences of opinion while performing their
duties.: False, Integrity can accommodate the inadvertent error and honest
difference of opinion; it cannot accommodate deceit or subordination of
principles.
9. AICPA Interpretations limit the scope and application of the rules.: False,
The interpretations of the rules of conduct provide guidelines about the scope
and application of the rules but are not intended to limit such scope or
application
10. The AICPA Code of Professional Conduct provides practical guidance to
only members in public practice: False, The AICPA Code provides practice
guidance for all members.
11. Under the Rules of Professional Conduct promulgated under the Texas
Public Accountancy Act, all of the rules of professional conduct shall
apply to and must be observed by a certificate or registration holder
engaged in the client practice of public accountancy.: True, Correct under
Rule 501.53(a), Applicability of Rules of Professional Conduct.
, Ethics Final - AICPA
12. Integrity as defined in the AICPA Code of Conduct is an element of
character fundamental to professional recognition: True
13. The characteristics common to all profession include existence of a
complex body of knowledge and acknowledgement of a responsibility to
serve the client.: False, responsibility to serve the public
14. Membership in the AICPA is voluntary, but by accepting membership, a
CPA assumes an obligation of self-discipline and agrees to adhere to the
Code.: True
15. The AICPA Code of Professional Conduct begins with a preface that
applies to all members.: True
16. The Responsibilities principle of the AICPA Code of Conduct requires that
service and public trust not be subordinated to personal gain and
advantage.: False, This is integrity
17. The AICPA Code of Professional Conduct provides assurance to clients
and to the public that the professional intends to maintain high
standards.: True
18. PCAOB was created by the Sarbanes-Oxley Act of 2002.: True
19. CPAs who practice in public accounting are required to be members of
AICPA.: False, membership in the AICPA is voluntary
20. The AICPA Rules of Conduct apply to all professional services
performed.-
: False, except when working of the rule indicates otherwise
21. Integrity is the quality from which public trust derives and the benchmark
against which a member must ultimately test all decisions.: True
22. Objectivity is measured in terms of what is right and just.: False, This is
integrity
23. Providing tax services to both parties involved in a divorce proceeding
would not be viewed as impairing a CPA's objectivity.: False, This would be
considered a conflict of interest
24. CPAs employed by others to prepare financial statements or to perform
internal auditing, tax, or consulting services are charged with the same
responsibility for objectivity as those in public practice.: True
25. A conflict of interest exists if a member in public practice provides
services to a company that is a major competitor of a company in which
the CPA has a position of influence.: True
