pg. 1 AICPA Ethics Final Exam Latest 2025 Actual Exam| Complete 200 Questions and Correct Detailed Answers (Verified Answers) Already Graded A+
Membership in the AICPA is voluntary, but by accepting membership, a CPA assumes an obligation of self-discipline and agrees to adhere to the Code. - ANSWER - True
The AICPA Code of Professional Conduct begins with a preface that applies to all members. - ANSWER - True
The Responsibilities principle of the AICPA Code of Conduct requires that service and public trust not be subordinated to personal gain and advantage. - ANSWER - False, This is integrity
The AICPA Code of Professional Conduct provides assurance to clients and to the public that the professional intends to maintain high standards. - ANSWER - True
PCAOB was created by the Sarbanes-Oxley Act of 2002. - ANSWER - True
CPAs who practice in public accounting are required to be members of AICPA. - ANSWER - False, membership in the AICPA is voluntary
The AICPA Rules of Conduct apply to all professional services performed. - ANSWER - False, except when working of the rule indicates otherwise 1 / 4
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Integrity is the quality from which public trust derives and the benchmark against which a member must ultimately test all decisions. - ANSWER - True
Objectivity is measured in terms of what is right and just. - ANSWER - False, This is integrity
Providing tax services to both parties involved in a divorce proceeding would not be viewed as impairing a CPA's objectivity. - ANSWER - False, This would be considered a conflict of interest
CPAs employed by others to prepare financial statements or to perform internal auditing, tax, or consulting services are charged with the same responsibility for objectivity as those in public practice. - ANSWER - True
A conflict of interest exists if a member in public practice provides services to a company that is a major competitor of a company in which the CPA has a position of influence. - ANSWER - True
A conflict of interest does not exist when a member in public practice provides taxes services to a divorced couple - ANSWER - False, The conflict of interest exists if the couple were involved in a divorce proceeding
A conflict of interest does not exist when a member in public practice refers a client to a service bureau in which the member or partners in the member's firm hold material financial interest. - ANSWER - False, This creates an adverse interest and a self-interest which creates a treat to the member's compliance with the Integrity and Objectivity Rule.
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pg. 3 A conflict of interest would exist if a member in business selects his ex- wife's company to provide cleaning services for his employer's buildings. - ANSWER - False, Ex-wife is not considered to be an immediate family member.
As defined in the TSBPA Code of Professional Conduct, "Professional Accounting Services" or "professional accounting work" means services or work that requires the specialized knowledge or skills associated with certified public accountants. - ANSWER - True
The SEC prohibits auditors from being a broker-dealer. - ANSWER - True, This activity involves recommending securities, soliciting customers, and the execution of orders that could involve issuer or investor clients. Such activities would cause third parties to question the auditor's ability to be impartial and objective.
A member in business would not be in violation of the Integrity and Objectivity Rule if they were directed by their supervisor to record misleading entries in an entity's financial records but at the time did not know the entries were misleading. - ANSWER - True, A member has to know that the entries were misleading at the time.
If there is a difference of opinion between a member in business and his or her supervisor, the member should report this difference of opinion to the external auditors. - ANSWER - False, The member in business should determine after appropriate research or consultation, whether the result of the position taken by the supervisor failed to comply with professional standards then report this to the next level.
When a conflict of interest has been identified as significant, the member in public practice should discontinue the professional services. - ANSWER - True 3 / 4
pg. 4 A conflict of interest does exist when a member in public practice advises a client to invest in a business in which the member's cousin has a financial interest in the business. - ANSWER - False, Advising a client to invest in a business in which, for example, the immediate family member of the member has a financial interest in the business would be a conflict of interest but a cousin is not considered an immediate family member.
A conflict of interest does exist when a member in public practice advises a client on the purchase of a product or service. - ANSWER - False, Only if the member receives a royalty or commission agreement with one of the potential vendors of that product or service.
A member in business who is a broker-dealer attending a trade convention in Las Vegas would not be violating the Integrity and Objectivity Rule if he accepted tickets from one of the vendor to attend a Las Vegas show. - ANSWER - False, The entertainment is associated with active conduct of business directly before, during or after the entertainment.
The SEC prohibits auditors from engaging in a commercial business even though it is not in direct competition with the business of a client. - ANSWER - False, The SEC prohibits auditors from engaging in a commercial business that is directly competitive with a client because this would appear to a third party as influencing the auditor's objectivity, because the auditor would have access to records, policies, and practices of a business competitor.
When a conflict of interest has been identified, a member in public practice should immediately disassociate himself from the engagement. - ANSWER
- False, When a conflict of interest has been identified, a member should
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evaluate the significance of the threat to determine if it is acceptable.Members should consider both qualitative and quantitative factors when evaluating the significance of the threat, including the extent to which existing safeguards already reduce the threat to an acceptable level.