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CPA Ethics Exam NEW VERSION UPDATE ACTUAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) 100% PASS SOLUTION /ALREADY GRADED A+$15.99
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A CPA in public practice ______________ avoid operating
under a code of professional ethics by choosing not
to join either the AICPA or any state CPA society.
(a) may
(b) may not - ANSWER>>(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
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. - ANSWER>>(c) is the conect answer. Code of Professional
Conduct, Strncture, says that infraction of any of the rules makes a member liable to disciplinary
action.
(a) is wrong since members who depart from the
guidance in ethical rulings in similar circumstances
will be asked to justify such departure. They cannot
however be charged with violating a ruling.
(b) is also wrong since a member cannot be
charged with violating an interpretation. In a disciplina1y
hearing where the member was charged with
violating a rnle, the member would have the burden of justifying any departure from interpretations
ofthat rule.
,The Trial Board may, after a hearing, do two of the three things listed below. Mark the one that the Trial
Board cannot do.
(a) Suspend a member.
(b) Suspend the member's CPA certificate.
( c) Expel a member. - ANSWER>>(b) is the correct answer. Code of Professional
Conduct, Enforcement, says a Trial Board may
admonish, suspend or expel a member. The Trial
Board has no jurisdiction over a member's CPA
certificate.
Which of the following requires that any changes in
them be approved by the members of the AICPA?
(a) Rules and interpretations of the rules.
(b) Principles and rules.
(c) Principles, rules and interpretations of the rules. - ANSWER>>(b) is correct. Code of
Professional Conduct,
Structure, says that Principles and Rules must be
approved by the AI CPA members.
(a) is wrong and ...
( c) is wrong since interpretations are prepared and issued by the Professional Ethics Executive
Committee without obtaining approval by the members.
The results of a guilty finding by a Trial Board will
be:
(a) published by the AICPA, but the member 's name will not be disclosed.
, (b) published by the AICPA. and the member 's name will be disclosed if the Trial Board votes to
do
so.
(c) published by the AICPA with the member 's
name given. - ANSWER>>(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. -
ANSWER>>(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.
The accounting profession 's public includes
(a) Governmental agencies.
(b) Credit grantors.
(c) Investors.
, (d) All of the above - ANSWER>>(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.
(c) Member's understanding the code and voluntary compliance with it. - ANSWER>>(c) is the
correct answer. Composition, Applicability
and Compliance in the Articles says that compliance with the code, as with all standards in an open
society, depends primarily on member 's understanding of the code and voluntary compliance with it.
(a) is wrong. This section says that reinforcement by one's peers and public opinion is secondary
in obtaining compliance with the code.
(b) is also wrong since this section says disciplinary proceedings against those that violate the code are
the ultimate or final method of obtaining compliance.
The Principles state that a member has responsibility
to:
(a) Colleagues.
(b) Clients.
(c) The public.
(d) All of the above. - ANSWER>>(d) is correct.
The Preamble to the Articles says that members have
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