Question 1

The Sarbanes-Oxley Act addresses issues of corporate governance as well as the independence of auditors.

Accepted Answer

A) True 
 B)False

Question 2

Enrolled actuaries are allowed topractice before the IRS.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements best describes Circular 230?

Accepted Answer

A) Circular 230 has been adopted by the AICPA as its set of rules of practice for CPAs. 
B) Circular 230 is a set of Treasury Department ethical and legal standards for those engaging in practice before the IRS. 
C) Circular 230 is a set of internal rules at the IRS designed toprotect tax practitioners from unfair discipline by the IRS. 
D) Circular 230 is a set of ethical rules for taxpayers. 
A) Circular 230 has been adopted by the AICPA as its set of rules of practice for CPAs. 
B) Circular 230 is a set of Treasury Department ethical and legal standards for those engaging in practice before the IRS. 
C) Circular 230 is a set of internal rules at the IRS designed toprotect tax practitioners from unfair discipline by the IRS. 
D) Circular 230 is a set of ethical rules for taxpayers.

Question 4

According toCircular 230, the "best practices" rules are:

Accepted Answer

A) mandatory for all tax practitioners 
B) restricted only toattorneys and CPAs 
C) aspirational, toact as goals for tax practitioners 
D) enforced by disbarment from practice before the IRS 
A) mandatory for all tax practitioners 
B) restricted only toattorneys and CPAs 
C) aspirational, toact as goals for tax practitioners 
D) enforced by disbarment from practice before the IRS

Question 5

The primary change made by the Sarbanes-Oxley Act which affects the practice of public accounting is:

Accepted Answer

A) Public accounting firms may nolonger provide any actuarial services. 
B) Accounting firms may nolonger offer tax shelters. 
C) Auditors may never dotax compliance work for their clients. 
D) Public accounting firms may provide some nonaudit services totheir audit clients if the services are approved in advance by an audit committee. 
A) Public accounting firms may nolonger provide any actuarial services. 
B) Accounting firms may nolonger offer tax shelters. 
C) Auditors may never dotax compliance work for their clients. 
D) Public accounting firms may provide some nonaudit services totheir audit clients if the services are approved in advance by an audit committee.

Question 6

Which of the following statements best explains the need for tax practitioners tounderstand nonregulatory ethical models of behavior?

Accepted Answer

A) Competing ethical solutions must be resolved by the courts. 
B) There is more toethical behavior than just following the rules of professional organizations. 
C) Practitioners must always choose the action with the greatest benefit for their client. 
D) Ethical choices are clearly spelled out by IRS regulations. 
A) Competing ethical solutions must be resolved by the courts. 
B) There is more toethical behavior than just following the rules of professional organizations. 
C) Practitioners must always choose the action with the greatest benefit for their client. 
D) Ethical choices are clearly spelled out by IRS regulations.

Question 7

Paid tax return preparers must register with the IRS and obtain a PTIN.

Accepted Answer

A) True 
 B)False

Question 8

Does the IRS regulate unenrolled tax preparers? Explain your answer.

Accepted Answer

Yes, unenrolled preparers are now regula

Question 9

An ethical dilemma occurs when someone is faced with a situation for which there are noclearly defined answers.

Accepted Answer

A) True 
 B)False

Question 10

An EA must renew his or her enrollment card on a:

Accepted Answer

A) 5-year cycle 
B) 3-year cycle 
C) 2-year cycle 
D) Renewal is not required once an EA gets a card 
A) 5-year cycle 
B) 3-year cycle 
C) 2-year cycle 
D) Renewal is not required once an EA gets a card

Question 11

A member of the AICPA may never disclose confidential taxpayer information under the AICPA rules.

Accepted Answer

A) True 
 B)False

Question 12

What should an AICPA member doupon learning about an error in a prior year's tax return?

Accepted Answer

A member must advise the taxpayer prompt

Question 13

Under Statements on Standards for Tax Services No. 3 (SSTS No. 3), a CPA preparing a tax return should perform all of the actions EXCEPT:

Accepted Answer

A) independently confirm the accuracy of the taxpayer's information 
B) obtain additional information if the taxpayer's information appears tobe incorrect or incomplete 
C) review the prior year's return when feasible 
D) determine when conditions for a deduction have been met 
A) independently confirm the accuracy of the taxpayer's information 
B) obtain additional information if the taxpayer's information appears tobe incorrect or incomplete 
C) review the prior year's return when feasible 
D) determine when conditions for a deduction have been met

Question 14

Under the AICPA Code of Professional Conduct , which of the following actions would constitute deceptive advertising?

Accepted Answer

A) advertising toofrequently 
B) implying that the CPA had the ability toinfluence an IRS official 
C) promising a favorable result without justification 
D) implying that the CPA had the ability toinfluence an IRS official and promising a favorable result without justification 
A) advertising toofrequently 
B) implying that the CPA had the ability toinfluence an IRS official 
C) promising a favorable result without justification 
D) implying that the CPA had the ability toinfluence an IRS official and promising a favorable result without justification

The Sarbanes-Oxley Act addresses issues of corporate governance as well as the independence of auditors.

Enrolled actuaries are allowed topractice before the IRS.

Which of the following statements best describes Circular 230?

According toCircular 230, the "best practices" rules are:

The primary change made by the Sarbanes-Oxley Act which affects the practice of public accounting is:

Which of the following statements best explains the need for tax practitioners tounderstand nonregulatory ethical models of behavior?

Paid tax return preparers must register with the IRS and obtain a PTIN.

Does the IRS regulate unenrolled tax preparers? Explain your answer.

An ethical dilemma occurs when someone is faced with a situation for which there are noclearly defined answers.

An EA must renew his or her enrollment card on a:

A member of the AICPA may never disclose confidential taxpayer information under the AICPA rules.

What should an AICPA member doupon learning about an error in a prior year's tax return?

Under Statements on Standards for Tax Services No. 3 (SSTS No. 3), a CPA preparing a tax return should perform all of the actions EXCEPT:

Under the AICPA Code of Professional Conduct , which of the following actions would constitute deceptive advertising?

Tax Research Methodology

Constitutional and Legislative Sources

Administrative Regulations and Rulings

Judicial Interpretations

Thomson Reuters Checkpoint

CCH Intelliconnect

Other Tax Services and Tax Periodicals

Multijurisdictional Taxes

Communicating Research Results

Tax Planning

Working With the IRS

Tax Practice and Administration

Filters

Exam 1: Introduction Totax Practice and Ethics

The Sarbanes-Oxley Act addresses issues of corporate governance as well as the independence of auditors.

Enrolled actuaries are allowed topractice before the IRS.

Which of the following statements best describes Circular 230?

According toCircular 230, the "best practices" rules are:

The primary change made by the Sarbanes-Oxley Act which affects the practice of public accounting is:

Which of the following statements best explains the need for tax practitioners tounderstand nonregulatory ethical models of behavior?

Paid tax return preparers must register with the IRS and obtain a PTIN.

Does the IRS regulate unenrolled tax preparers? Explain your answer.

An ethical dilemma occurs when someone is faced with a situation for which there are noclearly defined answers.

An EA must renew his or her enrollment card on a:

A member of the AICPA may never disclose confidential taxpayer information under the AICPA rules.

What should an AICPA member doupon learning about an error in a prior year's tax return?

Under Statements on Standards for Tax Services No. 3 (SSTS No. 3), a CPA preparing a tax return should perform all of the actions EXCEPT:

Under the AICPA Code of Professional Conduct , which of the following actions would constitute deceptive advertising?

Tax Research Methodology

Constitutional and Legislative Sources

Administrative Regulations and Rulings

Judicial Interpretations

Thomson Reuters Checkpoint

CCH Intelliconnect

Other Tax Services and Tax Periodicals

Multijurisdictional Taxes

Communicating Research Results

Tax Planning

Working With the IRS

Tax Practice and Administration

Filters