AICPA Ethics Code Exam QuestionsSolutions

AICPA Ethics Code Exam – Questions/Solutions Which step in the decision-making model is characterized by asking the question, "Are these opinions consistent with applicable professional ethics rules, regulations, and laws?"

• Recognize ethical issues
• Gather critical facts
• Consider the effect on stakeholders
• Consider rules, regulations, and laws Correct Ans - D. Consider

rules, regulations, and laws Step 7 asks this question. You may determine that the greatest benefit and least amount of harm would likely result if you take a particular course of action, but if that course of action is inconsistent with the profession's rules of conduct, you may not ignore those rules.Which step in the decision-making model is characterized by asking the question, "If you had to discuss your decision in public, would you be concerned about how it reflects on your ethics"

• Recognize ethical issues
• Consider your comfort level
• Consider the effect on stake holders
• Consider rules, regulations, and laws Correct Ans - B. Consider

your comfort level Step 6 asks you to consider your comfort level. Before you make a decision about the correct action when facing an ethical issue, you should ask yourself some questions.CPAs must follow the rules and standards promulgated by which body?

A. AICPA

B. SEC

C. PCAOB

• Your state CPA licensing board Correct Ans - D. Your state CPA

licensing board State CPA licensing boards are charged with issuing CPA licenses and overseeing the ethical conduct of CPAs in 55 jurisdictions in the United States. It is critically important for CPAs to know their state board's requirements. If you are licensed by more than one state board, you should familiarize yourself with each state's requirements. 1 / 2

As a professional CPA, I have the greatest responsibility to serve:

• My clients
• My best interest
• The public's interest
• My superior's interest Correct Ans - C. Your primary

responsibility is to serve the public interest.As a professional CPA, I have a responsibility to maintain and broaden

public confidence by performing all my responsibilities with:

• Integrity
• Speed
• Agility
• Perfection Correct Ans - A. Integrity

Integrity is one of the cornerstones of our profession.I also must maintain my objectivity, be free of conflicts of interest, and discharge all of my responsibilities with due...

• Respect
• Care
• Diligence
• Speed Correct Ans - B. Care

Due care implies a certain level of quality and competence in the performance of services.Bob is a CPA who works as as senior accountant in a small but diversified financial services company. Bob works for the parent company (bank) in a division that makes business loans. His mother has been offered a seat on the board of directors of a subsidiary company that is an investment advisor.Does Bob's situation cause a significant threat to Bob's integrity and objectivity (conflict of interest)?

• No. The bank and investment advisory firm are separate and distinct

businesses

• Yes. Directorships of relatives always result in conflicts of interest
• Maybe. But more facts should be considered Correct Ans - C.

Maybe. But more facts should be considered We need more information to determine whether this situation creates a significant threat to Bob's ability to be objective.

• / 2