Latest AICPA Ethics Exam 2025 With 200 Exam Prep

pg. 1 Latest AICPA Ethics Exam 2025 With 200 Exam Prep Questions And Correct Verified Answers/ AICPA Ethics/Code Of Professional Conduct Test 2025 (New!)

Which statement best describes the AICPA ethics rules relating to a member's failure to file his or her personal tax return in a timely manner? a. The member is strongly encouraged to file his or her personal tax returns in a timely manner.

• The failure to file a personal tax return in a timely manner must be disclosed to

all clients and potential clients.

• The failure to file a personal tax return in a timely manner is usually considered

an act discreditable to the profession.

• The member is not in violation of any ethics rules as long as the failure to file a

personal tax return in a timely manner was due to a heavy workload. - ANSWER-

• The failure to file a personal tax return in a timely manner is usually considered

an act discreditable to the profession.

Which phrase is used by the AICPA Code of Professional Conduct to describe integrity?

• Candid, within the constraints of client confidentiality.
• Forceful advocate of the client's position.
• Valued business adviser to the client. d. Willing to subordinate judgment to

achieve a proper outcome. - ANSWER-a. Candid, within the constraints of client confidentiality

Which statement best describes the AICPA ethics rules relating to advertising?

• Advertising using banner ads over the internet is considered overreaching and is

prohibited.

• Mass email advertising is not allowed because it is considered a form of

harassment. 1 / 4

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• Advertising is permitted as long as it is not false or misleading.
• Advertising over any form of mass media is prohibited. - ANSWER-c.

Advertising is permitted as long as it is not false or misleading.

Members should use the AICPA conceptual framework for independence to

• Come to different conclusions than the interpretations of the Code of

Professional Conduct.

• Evaluate threats to independence not addressed in the Code of Professional

Conduct.

• Understand the rules on confidential client information and acts discreditable to

the profession.

• More easily interpret conflicts of interest and subordination of judgment by a

member. - ANSWER-b. Evaluate threats to independence not addressed in the Code of Professional Conduct.

Under AICPA rules, which statement best describes the period of the professional engagement as it applies to a three-year engagement to audit a client's financial statements?

• It begins each year when fieldwork commences and ceases when fieldwork ends.
• It begins when fieldwork commences and ceases when the report is issued,

recommencing when fieldwork begins again for the next period.

• It begins when the engagement letter is signed and ceases each year when the

report is issued.

• It begins when the engagement letter is signed and continues until the report for

the third year is issued unless the relationship is terminated sooner. - ANSWER-d.It begins when the engagement letter is signed and continues until the report for the third year is issued unless the relationship is terminated sooner.

Dorothy (an audit manager) has been assigned to the audit of Tandem Electric, Inc.Dorothy is concerned that Joanne, a friend from her college days, is on the internal 2 / 4

pg. 3 audit staff of Tandem Electric. Dorothy believes she could provide services to this client in an objective manner. Which statement best describes how Dorothy should apply the AICPA conceptual framework approach in this situation?

• Dorothy should refuse to provide services to Tandem Electric because no

safeguards would be effective in mitigating the threat(s) to her independence.

• Dorothy should not participate in the audit of Tandem Electric before obtaining

a written waiver from her firm's general counsel.

• Dorothy should consider the threats to her independence and whether safeguards

may be applied that reduce the threat(s) to an acceptable level.

• Dorothy should document her assessment of independence, which should

include a sworn statement - ANSWER-c. Dorothy should consider the threats to her independence and whether safeguards may be applied that reduce the threat(s) to an acceptable level.

The AICPA Code of Professional Conduct includes which sections?

• Preface, rules, and interpretations applicable to members in tax practice, and

rules and interpretations applicable to members in business.

• Preface, rules, and interpretations applicable to members in public practice, and

rules and interpretations applicable to members in business.

• Preface, rules, and interpretations applicable to members in tax practice, and

rules and interpretations applicable to members in audit practice.

• Preface, rules, and interpretations applicable to members in audit practice, and

rules and interpretations applicable to members in business. - ANSWER-b.Preface, rules, and interpretations applicable to members in public practice, and rules and interpretations applicable to members in business.

Sarah, the controller of a large beverage supplier, supervises two employees. Her boss, Vladimir, instructs her to increase the company's inventory balance for an amount that is material to the financial statements by crediting several small "miscellaneous" expense accounts. She does not understand why he wants her to 3 / 4

pg. 4 make these entries but immediately directs one of her staff to make them because she has been instructed to do so. Which statement best describes Sarah's actions?

• Sarah failed to evaluate a potential ethical issue.
• Sarah failed to refer the matter to the AICPA ethics hotline.
• Sarah failed to ensure that her staff was competent to make the entries.
• Sarah failed to consider the rules of other regulators. - ANSWER-a. Sarah failed

to evaluate a potential ethical issue

Which body develops independence rules that apply to engagements performed under generally accepted government auditing standards (GAGAS)?

• U.S. Government Accountability Office.
• U.S. Department of Labor.
• U.S. Department of the Treasury.
• U.S. Federal Deposit Insurance Corporation. - ANSWER-a. U.S. Government

Accountability Office

Josie, an accounting supervisor in Monk & Sons Realty, instructs Maria, her employee, to make certain accounting entries in the company's books that will increase revenue. Maria researches the matter, confirming her concern that these entries would overstate revenue, and informs Josie that recognizing revenue in this manner would be premature and not consistent with GAAP. Josie disagrees and insists that Maria record the entries. The amount of revenue is material to Monk's financial statements. According to the AICPA rules, what should Maria do first?

• Resign her position quietly.
• Report the matter to the senior partner in the firm.
• Take out a professional liability policy. d. Discuss her concerns with Josie's boss
• ANSWER-b. Report the matter to the senior partner in the firm.
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