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?"
A. Recognize ethical issues
B. Gather critical facts
C. Consider the effect on stakeholders
D. Consider rules, regulations, and laws - ANSWER-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"
A. Recognize ethical issues
B. Consider your comfort level
C. Consider the effect on stake holders
D. Consider rules, regulations, and laws - ANSWER-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
D. Your state CPA licensing board - ANSWER-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.
As a professional CPA, I have the greatest responsibility to serve:
A. My clients
B. My best interest
C. The public's interest
D. My superior's interest - ANSWER-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:
A. Integrity
B. Speed
C. Agility
D. Perfection - ANSWER-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...
A. Respect
B. Care
C. Diligence
D. Speed - ANSWER-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)?
A. No. The bank and investment advisory firm are separate and distinct
businesses
B. Yes. Directorships of relatives always result in conflicts of interest
C. Maybe. But more facts should be considered - ANSWER-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.
Which factor must be in place for you to perform services in light of a potential
conflict of interest?
A. The affected parties have agreed to bring the matter to the BOD
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