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AICPA-120 Exam 2 With 100% Correct And Verified Answers
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AICPA-120 Exam 2 With 100% Correct And Verified Answers
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AICPA-120 Exam 2 With 100% Correct AndVerified Answers
The AICPA's Code of Professional Conduct contains
principles, rules, interpretations, and rulings. - Correct
Answer-True
Ethics Rulings summarize the application of rules and
interpretations to a particular set of factual circumstances. -
Correct Answer-True
A code of ethics serves as a reference and benchmark for
acceptable professional behavior. - Correct Answer-True
The Texas Society of Certified Public Accountants issues
licenses to practice as certified public accountants in the
State of Texas. - Correct Answer-False
AICPA Interpretations limit the scope and application of the
rules. - Correct Answer-False
The Responsibilities principle of the AICPA Code of
Conduct requires that service and public trust not be
subordinated to personal gain and advantage. - Correct
Answer-False
The AICPA Principles are broad but specific descriptions of
conduct that would violate the responsibilities stated in the
code. - Correct Answer-False
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,Ethics Rulings are similar to legal precedents established by
courts based on cases coming before those courts. - Correct
Answer-True
The principles are positive statements of responsibility that
provide the framework for the rules which govern
performance. - Correct Answer-True
Compliance with AICPA rules of conduct depends primarily
on reinforcement by peers and public opinion. - Correct
Answer-False
The AICPA Rules of Conduct apply to all professional
services performed. - Correct Answer-False
When a performance engagement exceeds the personal
competence of a member or a member's firm, the Due Care
Principle requires the member to subordinate his
responsibilities to others. - Correct Answer-False
The AICPA Code of Professional Conduct provides
assurance to clients and to the public that the professional
intends to maintain high standards. - Correct Answer-True
The AICPA's Code of Professional Conduct was adopted by
the membership of the AICPA to provide guidance to all
members in carrying out professional responsibilities. -
Correct Answer-True
State Societies of CPAs and State Boards of Public
Accountancy, instead of establishing their own ethics code,
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, use the AICPA's Code of Professional Conduct. - Correct
Answer-False
Members employed by others to prepare financial statements or to
perform auditing must adhere to the objectivity and independence
principle in the AICPA Code of Conduct. - Correct Answer-False
The AICPA Code of Professional Conduct is a collection of
codified statements issued by the American Institute of Certified
Public Accountants that outline the maximum ethical standards
that must be followed by CPAs. - Correct Answer-False
PCAOB was created by the Sarbanes-Oxley Act of 2002. - Correct
Answer-True
The usual penalty for an ethics violation is taking specified CPE
courses. - Correct Answer-True
The Sarbanes-Oxley Act of 2002 created a new Public Company
Accounting Oversight Board that has many responsibilities,
including the establishment and enforcement of ethics standards.
- Correct Answer-True
A conflict of interest would not result if a member provided
personal financial planning services to several members of a
family who may have opposing interests. - Correct Answer-False
Acceptance of a gift from a client will not impair independence if
the gift is lavish, but not excessive considering the audit fee. -
Correct Answer-False
AICPA Interpretation on Professional Services Involving Client
Advocacy prohibits an audit firm from supporting client's position
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