Question 1

Under the automatic disciplinary provision of the bylaws, termination of membership occurs when the member has been convicted.

Accepted Answer

A) True 
 B)False

Question 2

Which one of the following is not true of the Principles in the AICPA's Code of Professional Conduct?

Accepted Answer

A)  They provide a framework for the Rules. 
B)  They are set forth as enforceable standards. 
C)  They express the basic tenets of ethical conduct. 
D)  They are expressions of ideals of professional conduct. 
E)  They are minimum standards of acceptable conduct. 
A)  They provide a framework for the Rules. 
B)  They are set forth as enforceable standards. 
C)  They express the basic tenets of ethical conduct. 
D)  They are expressions of ideals of professional conduct. 
E)  They are minimum standards of acceptable conduct.

Question 3

Ethics deals with how people act towards one another.

Accepted Answer

A) True 
 B)False

Question 4

The Joint Trial Board may take which one of the following disciplinary actions against a member?

Accepted Answer

A)  revoke the member's license 
B)  suspend membership for no more than three years 
C)  admonish the member 
D)  fine the member 
E)  convict the member 
A)  revoke the member's license 
B)  suspend membership for no more than three years 
C)  admonish the member 
D)  fine the member 
E)  convict the member

Question 5

The AICPA's Code of Professional Conduct governs all accountants.

Accepted Answer

A) True 
 B)False

Question 6

The AICPA's Code of Professional Conduct governs AICPA members and is administered by the:

Accepted Answer

A)  SEC. 
B)  State Boards of Accountancy. 
C)  AICPA Emerging Issues Task Force. 
D)  AICPA Professional Ethics Team 
E)  SEC ethical advisors 
A)  SEC. 
B)  State Boards of Accountancy. 
C)  AICPA Emerging Issues Task Force. 
D)  AICPA Professional Ethics Team 
E)  SEC ethical advisors

Question 7

Rule 501 - Acts Discreditable in the AICPA's Code of Professional Conduct, enables disciplinary action to be taken for unethical acts of a member not specifically covered by other rules.

Accepted Answer

A) True 
 B)False

Question 8

The FTC's 1990 Order to the AICPA required change in the wording of implementation of which of the following Rules?

Accepted Answer

A)  advertising, contingent fees, and acts discreditable 
B)  contingent fees, commissions, and acts discreditable 
C)  advertising, commissions, and acts discreditable 
D)  advertising, contingent fees, and commissions 
E)  contingent fees, commissions, and accounting principles 
A)  advertising, contingent fees, and acts discreditable 
B)  contingent fees, commissions, and acts discreditable 
C)  advertising, commissions, and acts discreditable 
D)  advertising, contingent fees, and commissions 
E)  contingent fees, commissions, and accounting principles

Question 9

Under the "Joint Ethics Enforcement Program" (JEEP), the AICPA normally has jurisdiction over cases involving:

Accepted Answer

A)  proven fraud. 
B)  narrow national issues. 
C)  alleged ethical violations. 
D)  more than one member. 
E)  more than one state. 
A)  proven fraud. 
B)  narrow national issues. 
C)  alleged ethical violations. 
D)  more than one member. 
E)  more than one state.

Question 10

Listed below are statements relating to the principles of the AICPA's Code of Professional Conduct.
1.Members should perform all professional responsibilities with the highest sense of probity.
2.Members should exercise sensitive professional and moral judgments in all their activities.
3.A member in public practice should observe the Principles of the Code of Professional Conduct in determining the extent and character of services to be provided.
4.Members should accept the obligation to act in a way that will serve the community welfare, honor the community trust, and demonstrate commitment of professionalism.
5.A member should observe the profession's technical and ethical standards, strive continually to improve competence and the quality of services, and discharge professional responsibility to the best of the member's ability.
6.A member should maintain neutrality and be free of conflicts of interest in discharging professional responsibilities. A member in public practice should be autonomous in fact and appearance when providing auditing and other attestation services.
REQUIRED: For each statement, identify the principle to which it relates.

Accepted Answer

1.Integrity
2.Responsibilities

Question 11

A code of professional ethics should be designed to elicit professional behavior that is:

Accepted Answer

A)  equal to that required by the law. 
B)  ideal. 
C)  below the ideal but above the law. 
D)  not directly addressed by the law. 
E)  equal to the ideal. 
A)  equal to that required by the law. 
B)  ideal. 
C)  below the ideal but above the law. 
D)  not directly addressed by the law. 
E)  equal to the ideal.

Question 12

Due professional care, planning and supervision, and sufficient relevant data codify practices that must be followed in performing any service.

Accepted Answer

A) True 
 B)False

Question 13

The maximum sanction that the AICPA can impose if to:

Accepted Answer

A)  expel the member. 
B)  admonish the member. 
C)  suspend the member. 
D)  fine the member. 
E)  warn the member. 
A)  expel the member. 
B)  admonish the member. 
C)  suspend the member. 
D)  fine the member. 
E)  warn the member.

Question 14

The AICPA's joint trial board may take the disciplinary action of expelling a member.

Accepted Answer

A) True 
 B)False

Question 15

The AICPA Professional Ethics Team performs four major functions.

Accepted Answer

A) True 
 B)False

Question 16

Which one of the following is not an MCS service that a CPA firm is required to refrain from performing for its SEC audit clients?

Accepted Answer

A)  human resource functions 
B)  actuarial services 
C)  expert services unrelated to the audit 
D)  appraisal or services 
E)  auditing services to insurance companies 
A)  human resource functions 
B)  actuarial services 
C)  expert services unrelated to the audit 
D)  appraisal or services 
E)  auditing services to insurance companies

Question 17

A member in public practice may be held responsible for compliance with Rules of Conduct in the AICPA's Code of Professional Conduct of:

Accepted Answer

A)  the member only. 
B)  all persons under the member's supervision. 
C)  all the member's partners or shareholders in the practice. 
D)  all persons under the member's supervision or all the member's partners or shareholders in the practice. 
E)  the member or all persons under the member's supervision. 
A)  the member only. 
B)  all persons under the member's supervision. 
C)  all the member's partners or shareholders in the practice. 
D)  all persons under the member's supervision or all the member's partners or shareholders in the practice. 
E)  the member or all persons under the member's supervision.

Question 18

Rule 502 in the AICPA's Code of Professional Conduct currently can be used to prevent the use of:

Accepted Answer

A)  materials considered to be deceptive. 
B)  materials not considered professionally dignified. 
C)  materials considered to be in poor taste. 
D)  self-laudatory claims, endorsements, or testimonials. 
E)  direct solicitation. 
A)  materials considered to be deceptive. 
B)  materials not considered professionally dignified. 
C)  materials considered to be in poor taste. 
D)  self-laudatory claims, endorsements, or testimonials. 
E)  direct solicitation.

Question 19

For a material indirect financial interest to impair a member's independence, the member must have knowledge of the interest.

Accepted Answer

A) True 
 B)False

Question 20

One of the distinguishing characteristics of any profession is the existence of a code of professional conduct for its members.

Accepted Answer

A) True 
 B)False

Under the automatic disciplinary provision of the bylaws, termination of membership occurs when the member has been convicted.

Which one of the following is not true of the Principles in the AICPA's Code of Professional Conduct?

Ethics deals with how people act towards one another.

The Joint Trial Board may take which one of the following disciplinary actions against a member?

The AICPA's Code of Professional Conduct governs all accountants.

The AICPA's Code of Professional Conduct governs AICPA members and is administered by the:

Rule 501 - Acts Discreditable in the AICPA's Code of Professional Conduct, enables disciplinary action to be taken for unethical acts of a member not specifically covered by other rules.

The FTC's 1990 Order to the AICPA required change in the wording of implementation of which of the following Rules?

Under the "Joint Ethics Enforcement Program" (JEEP), the AICPA normally has jurisdiction over cases involving:

A code of professional ethics should be designed to elicit professional behavior that is:

Due professional care, planning and supervision, and sufficient relevant data codify practices that must be followed in performing any service.

The maximum sanction that the AICPA can impose if to:

The AICPA's joint trial board may take the disciplinary action of expelling a member.

The AICPA Professional Ethics Team performs four major functions.

Which one of the following is not an MCS service that a CPA firm is required to refrain from performing for its SEC audit clients?

A member in public practice may be held responsible for compliance with Rules of Conduct in the AICPA's Code of Professional Conduct of:

Rule 502 in the AICPA's Code of Professional Conduct currently can be used to prevent the use of:

For a material indirect financial interest to impair a member's independence, the member must have knowledge of the interest.

One of the distinguishing characteristics of any profession is the existence of a code of professional conduct for its members.

Auditing and the Public Accounting

Financial Statement Audits and

Auditors Legal Liability

Overview of the Audit Process

Audit Evidence, Audit Objectives,

Accepting the Engagement and

Materiality Decisions and Performing Analytical Procedures

Audit Risk, Including the Risk of Fraud

Understanding Internal Controls

Audit Procedures in Response to Assessed Risks: Tests of Controls

Audit Procedures in Response to Assessed Risks: Substantive Tests

Audit Sampling in Substantive Tests

Auditing the Revenue Cycle

Auditing the Expenditure Cycle

Auditing the Production and

Auditing the Investing and

Auditing Investments and

Completing the Audit and Postaudit

Attest and Assurance Services, and Related Reports

Internal, Operational, and

Filters

Exam 3: Professional Ethics

Under the automatic disciplinary provision of the bylaws, termination of membership occurs when the member has been convicted.

Which one of the following is not true of the Principles in the AICPA's Code of Professional Conduct?

Ethics deals with how people act towards one another.

The Joint Trial Board may take which one of the following disciplinary actions against a member?

The AICPA's Code of Professional Conduct governs all accountants.

The AICPA's Code of Professional Conduct governs AICPA members and is administered by the:

Rule 501 - Acts Discreditable in the AICPA's Code of Professional Conduct, enables disciplinary action to be taken for unethical acts of a member not specifically covered by other rules.

The FTC's 1990 Order to the AICPA required change in the wording of implementation of which of the following Rules?

Under the "Joint Ethics Enforcement Program" (JEEP), the AICPA normally has jurisdiction over cases involving:

A code of professional ethics should be designed to elicit professional behavior that is:

Due professional care, planning and supervision, and sufficient relevant data codify practices that must be followed in performing any service.

The maximum sanction that the AICPA can impose if to:

The AICPA's joint trial board may take the disciplinary action of expelling a member.

The AICPA Professional Ethics Team performs four major functions.

Which one of the following is not an MCS service that a CPA firm is required to refrain from performing for its SEC audit clients?

A member in public practice may be held responsible for compliance with Rules of Conduct in the AICPA's Code of Professional Conduct of:

Rule 502 in the AICPA's Code of Professional Conduct currently can be used to prevent the use of:

For a material indirect financial interest to impair a member's independence, the member must have knowledge of the interest.

One of the distinguishing characteristics of any profession is the existence of a code of professional conduct for its members.

Auditing and the Public Accounting

Financial Statement Audits and

Auditors Legal Liability

Overview of the Audit Process

Audit Evidence, Audit Objectives,

Accepting the Engagement and

Materiality Decisions and Performing Analytical Procedures

Audit Risk, Including the Risk of Fraud

Understanding Internal Controls

Audit Procedures in Response to Assessed Risks: Tests of Controls

Audit Procedures in Response to Assessed Risks: Substantive Tests

Audit Sampling in Substantive Tests

Auditing the Revenue Cycle

Auditing the Expenditure Cycle

Auditing the Production and

Auditing the Investing and

Auditing Investments and

Completing the Audit and Postaudit

Attest and Assurance Services, and Related Reports

Internal, Operational, and

Filters