pg. 1 AICPA Final Test 2025 With 300 Questions And Correct Verified Answer (True/False Questions) AICPA Final Exam Latest 2025 (Brand New!)
The Independence Rule only applies to CPAs in public practice who provide any type of professional services that must be performed in accordance with standards that specify an independence requirement. - ANSWER-(True)
Investments by a covered member in a nonclient, nonregulated mutual fund that invests in stock of a client are indirect financial interests. - ANSWER-(True)
The term "immediate family" includes a parent or sibling. - ANSWER-(False)
Independence is essential when a CPA in the practice of public accounting issues a report that provides assurance on the reliability of a written assertion that is the responsibility of another party. This type of engagement is referred to broadly as a nonassurance service. - ANSWER-(False)
A covered member's/person's direct financial interest in a client does not impair independence. - ANSWER-(False)
Direct financial interests are ownership interests held directly in a client. - ANSWER-(True)
Even if the auditor is not independent, the procedures performed by the auditor would still be in accordance with GAAS, and the auditor can still express an opinion on the financial statements. - ANSWER-(False)
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pg. 2 The Texas State Board of Public Accountancy's Independence Rules are the same as the AICPA's independence rules. - ANSWER-(True)
Indirect financial interests include a financial interest in the client held by a close relative of an individual participating in the engagement. - ANSWER-(True)
A member of the AICPA not in public practice need not comply with Independence Rules of the AICPA's Rules of Professional Conduct. - ANSWER- (True)
The term "compilation" includes agreements to compile financial statements of a public company. - ANSWER-(False)
Independence is impaired whenever the partner or professional employee is connected with the client as a promoter, underwriter, voting trustee, director, or officer. - ANSWER-(True)
To be recognized as independent, the auditor must be free from any obligation to or interest in the client, its management or its owners - ANSWER-(True)
"Covered persons" include partners, principals, shareholders, and employees of the CPA firm who are on the audit engagement. - ANSWER-(True)
Whether an indirect financial interest impairs independence depends on materiality. - ANSWER-(True)
According to the ACIPA Code of Conduct of conduct, " a member who performs auditing, review, compilation, management consulting, tax, or other professional services must comply with standards created by the SEC." - ANSWER-(False) 2 / 4
pg. 3
Covered member includes a partner in the office in which the lead attest - ANSWER-(True)
A member in public practice should be independent in fact when providing auditing and other attestation services. This does not preclude relationships that may appear to impair a member's objectivity in rendering attestation services. - ANSWER-(False)
Any investment made by a covered member in an investment club is considered an indirect financial interest. Therefore, if club investments are made in clients, independence is impaired if the investment is considered material. - ANSWER- (False)
Independence will not be impaired if a former partner, professional employee does not have an accounting role or financial reporting oversight role with the audit client. - ANSWER-(True)
Independence is impaired if during the period of the engagement or at the time of expressing an opinion, a covered member had an automobile loan. - ANSWER- (False)
An immaterial loan from the CPA to an officer of a client impairs the independence of the CPA. - ANSWER-(True)
The Sarbanes-Oxley Act of 2002 makes it unlawful for a registered accounting firm to perform any auditing services for a public company for a one year period starting from the date the public company hired a CEO, CFO, controller, chief accounting officer, or any equivalent position, where that person was previously employed by that accounting firm and had participated in the audit of that public company. - ANSWER-(True) 3 / 4
pg. 4
A partner or professional employee serving on the board of directors of a nonprofit social club is not independent with regard to the club. - ANSWER-(True)
An appearance of participation or association would be created by the firm providing office amenities such as office space and secretarial and telephone services to a former practitioner. - ANSWER-(True)
An auditor's independence with respect to an employee benefit plan is not impaired whenever the auditor has a financial interest in or relationship with the plan or plan sponsor. - ANSWER-(False)
A member or member's firm using payroll time records provided and approved by the client, generate unsigned checks, or process client's payroll would not impair independence. - ANSWER-(True)
If the former partner, principal, or shareholder has an accounting role or financial reporting oversight role at the audit client and has a financial arrangement with the CPA firm other than a fully funded, fixed payment retirement account, independence would be impaired. - ANSWER-(True)
A member or CPA firm would not impair their independence by ensuring that transactions are properly executed or accounted for. - ANSWER-(False)
The Principles state that a member has responsibility to colleagues, to clients and to the profession. - ANSWER-(False)
Rules are the cornerstone of ethical behavior. - ANSWER-(False)
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