CPA Ethics Exam | 170 Questions with 100% Correct
Answers | Updated & Verified | 101 Pages
Which category contains the ethical standards, a
violation of which makes a member liable to disciplinary
action?
(a) Ethics Rulings.
(b) Interpretations of the Rules.
(c) Rules. - - (c) is the cone
name given. - - (c) is correct. Code of Professional Conduct,
Enforcement says that Trial Board convictions must
be published with the member's name disclosed.
(a) is then wrong since the name must be disclosed.
(b) is also wrong since the Trial Board does not have the option of deciding whether or not
the member's name will be disclosed.
An interpretation or ethics ruling usually becomes
effective:
(a) the first day of the month following the
month it is published in the Journal of Accountancy.
(b) two weeks after it is published in The CPA
Letter.
(c) the last day of the month in which it is
published in the Journal of Accountancy. - - (c) is corect. Code of Professional
Conduct,
Structure, says that interpretations and rulings are
normally effective the last day of the month they are published in the Journal of
Accountancy.
(a) and (b) are therefore wrong.
A CPA in public practice ______________ avoid operating
, CPA Ethics Exam | 170 Questions with 100% Correct
Answers | Updated & Verified | 101 Pages
under a code of professional ethics by choosing not
to join either the AICPA or any state CPA society.
(a) may
(b) may not - - (b) is correct. Code of Professional Conduct, Coverage, says that no
CPA practicing public accounting may avoid operating under a code of ethics. The CPA may
not join the AI CPA or his or her state CPA society and therefore would not be subject to
their codes of ethics. The CPA, however, cannot avoid being subject to his or her state
board of accountancy's code of ethics
The accounting profession 's public includes
(a) Governmental agencies.
(b) Credit grantors.
(c) Investors.
(d) All of the above - - (d) is the correct answer. As (see Article II) the
CPA's public includes everyone that relies on them. This then would include
(a) governmental agencies,
(b) credit grantors and
(c) investors.
Compliance with the AICPA Code of Professional
Conduct depends primarily on:
(a) Public opinion and reinforcement of one's attestation peers.
(b) Disciplinary proceedings when the code is
violated.
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