Question 1

A CPA wishes to accept a commission from one client for marketing the client's software product to other clients served by the CPA.The CPA:

Accepted Answer

A)  May do so as long as the CPA discloses this commission to these potential software purchasers and the potential purchasers are not audit clients 
B)  Always may do so as long as the CPA discloses this commission to these potential purchasers 
C)  May do so as long as the CPA discloses this commission to these potential software purchasers and the potential purchasers are not tax return preparation clients 
D)  Never may do so 
A)  May do so as long as the CPA discloses this commission to these potential software purchasers and the potential purchasers are not audit clients 
B)  Always may do so as long as the CPA discloses this commission to these potential purchasers 
C)  May do so as long as the CPA discloses this commission to these potential software purchasers and the potential purchasers are not tax return preparation clients 
D)  Never may do so A

Question 2

A company makes a payment to a political campaign committee that supports the reelection of a foreign government official.The company's goal was to ensure that the government official authorizes goods that are not entitled to be exported into that country to indeed be allowed to enter that country.However,the company never had any direct communications with that government official.The company has given:

Accepted Answer

A)  A facilitation payment 
B)  An unlawful referral fee 
C)  A lawful bribe 
D)  A bribe 
A)  A facilitation payment 
B)  An unlawful referral fee 
C)  A lawful bribe 
D)  A bribe D

Question 3

What are the different approaches that jurisdictions apply in regulating or punishing accountants who accept bribes in their capacities as employees of privately-held companies? How do you believe that this offense should be treated?

Accepted Answer

Some consider commercial bribery to be a felony,some consider it to be a misdemeanor,and a few view solely as a civil matter between the employer and the employee.

Question 4

A facilitation payment:

Accepted Answer

A)  Is never lawful under the Foreign Corrupt Practices Act 
B)  Is lawful under the Foreign Corrupt Practices Act as long as it does not involve the exportation of merchandise from the United States 
C)  Is lawful under the Foreign Corrupt Practices Act as long as it does not involve the importation of merchandise into the United States 
D)  Is always lawful under the Foreign Corrupt Practices Act 
A)  Is never lawful under the Foreign Corrupt Practices Act 
B)  Is lawful under the Foreign Corrupt Practices Act as long as it does not involve the exportation of merchandise from the United States 
C)  Is lawful under the Foreign Corrupt Practices Act as long as it does not involve the importation of merchandise into the United States 
D)  Is always lawful under the Foreign Corrupt Practices Act

Question 5

A CPA,acting on behalf of a client company,makes a payment to a foreign government official to ensure that goods that are not entitled to be exported into that country are indeed allowed to enter that country.By doing so,the CPA has:

Accepted Answer

A)  Given a lawful facilitation payment 
B)  Committed a direct violation of the Foreign Corrupt Practices Act's provision concerning "financial professionals and other client representatives" 
C)  Definitely jeopardized her professional license 
D)  Jeopardized her professional license only if she also performed auditing services with respect to that client during the same reporting period 
A)  Given a lawful facilitation payment 
B)  Committed a direct violation of the Foreign Corrupt Practices Act's provision concerning "financial professionals and other client representatives" 
C)  Definitely jeopardized her professional license 
D)  Jeopardized her professional license only if she also performed auditing services with respect to that client during the same reporting period

Question 6

When are contingency fees permissible in rendering tax services?

Accepted Answer

Contingency fees are payments to a servi

Question 7

An auditor has discovered that its audit client made numerous facilitation payments to foreign officials over the past two years.This client's stock trades on the New York Stock Exchange.The auditor should:

Accepted Answer

A)  Inform the SEC 
B)  Inform authorities at the stock exchange 
C)  Inform the companies' Audit Committee 
D)  Ignore this discovery 
A)  Inform the SEC 
B)  Inform authorities at the stock exchange 
C)  Inform the companies' Audit Committee 
D)  Ignore this discovery

Question 8

The "books and records" provisions of the Foreign Corrupt Practices Act:

Accepted Answer

A)  Potentially imposes criminal liability on internal auditors who fail to detect bribery or corruption in a firm's record-keeping system 
B)  Potentially imposes criminal liability on external auditors who fail to detect bribery or corruption in a firm's record-keeping system 
C)  Requires publicly-held companies to devise and maintain adequate internal controls over payments that constitute bribes 
D)  Requires companies to document the amounts, purpose, and recipients of facilitation payments to ensure that their federal income tax reporting is accurate 
A)  Potentially imposes criminal liability on internal auditors who fail to detect bribery or corruption in a firm's record-keeping system 
B)  Potentially imposes criminal liability on external auditors who fail to detect bribery or corruption in a firm's record-keeping system 
C)  Requires publicly-held companies to devise and maintain adequate internal controls over payments that constitute bribes 
D)  Requires companies to document the amounts, purpose, and recipients of facilitation payments to ensure that their federal income tax reporting is accurate

Question 9

In California,a CPA may:

Accepted Answer

A)  Always receive a referral fee in connection with the referral of a non-audit client 
B)  Always pay a referral fee in connection with the referral of a non-audit client 
C)  Never pay or receive a referral fee, in accordance with the AICPA's Code of Professional Conduct 
D)  Never pay or receive a referral fee, even if the AICPA's Code of Professional Conduct otherwise might authorize it 
A)  Always receive a referral fee in connection with the referral of a non-audit client 
B)  Always pay a referral fee in connection with the referral of a non-audit client 
C)  Never pay or receive a referral fee, in accordance with the AICPA's Code of Professional Conduct 
D)  Never pay or receive a referral fee, even if the AICPA's Code of Professional Conduct otherwise might authorize it

Question 10

Under the insider trading rules,a staff accountant who manages the collection and recording of a publicly-traded company's Accounts Receivable is:

Accepted Answer

A)  Never considered to be an insider 
B)  Prohibited from ever trading in the company's stock 
C)  Prohibited from trading in the company's stock, unless the purchases are made in a retirement fund in which numerous other employees also participate 
D)  Prohibited from trading in the company's stock if she possesses material, non-public information 
A)  Never considered to be an insider 
B)  Prohibited from ever trading in the company's stock 
C)  Prohibited from trading in the company's stock, unless the purchases are made in a retirement fund in which numerous other employees also participate 
D)  Prohibited from trading in the company's stock if she possesses material, non-public information

Question 11

If a company makes a payment to a foreign government official to ensure that goods that are not entitled to be exported into that country are indeed allowed to enter that country,the company has given:

Accepted Answer

A)  A facilitation payment 
B)  An unlawful referral fee 
C)  A lawful referral fee 
D)  A bribe 
A)  A facilitation payment 
B)  An unlawful referral fee 
C)  A lawful referral fee 
D)  A bribe

Question 12

Which of the following is not an "insider" for purposes of the insider trading rules?

Accepted Answer

A)  An internal auditor 
B)  An independent member of the Board of Directors who does not own any company stock 
C)  A shareholder who owns 7% of a company's stock and her husband owns 4% of the company's stock 
D)  A investors who owns 20% of a company's general obligation bonds that are trading at a price roughly equal to their market value 
A)  An internal auditor 
B)  An independent member of the Board of Directors who does not own any company stock 
C)  A shareholder who owns 7% of a company's stock and her husband owns 4% of the company's stock 
D)  A investors who owns 20% of a company's general obligation bonds that are trading at a price roughly equal to their market value

Question 13

Contingency fee arrangements are always allowed in tax matters if the amount of the fee an accountant is entitled to receive depends on:

Accepted Answer

A)  A determination by an IRS Administrative Board 
B)  An "all or nothing" determination 
C)  A percentage of the taxes saved 
D)  The accountant's testimony in court being competent and persuasive to the judge or jury 
A)  A determination by an IRS Administrative Board 
B)  An "all or nothing" determination 
C)  A percentage of the taxes saved 
D)  The accountant's testimony in court being competent and persuasive to the judge or jury

Question 14

What rule in the IFAC Code of Conduct governs an accountant's responsibilities when the accountant is offered a bribe?

Accepted Answer

The answer of What rule in the IFAC Code of...

Question 15

The key difference between a kickback and a contingent fee is:

Accepted Answer

A)  The amount involved 
B)  Whether the percentage of the gain shared is equal or not 
C)  A kickback refers to an unlawful transaction and contingent fees relate to lawful transactions 
D)  All of the above 
A)  The amount involved 
B)  Whether the percentage of the gain shared is equal or not 
C)  A kickback refers to an unlawful transaction and contingent fees relate to lawful transactions 
D)  All of the above

Question 16

What rule or rules in the AICPA Code of Conduct govern an accountant's responsibilities when the accountant is offered a bribe?

Accepted Answer

No specific rule expressly gov

Question 17

When are contingency fees permissible in rendering management consulting services?

Accepted Answer

Contingency fees in management consultin

Question 18

The Assistant Controller of a publicly-traded company may buy company stock as long as:

Accepted Answer

A)  She agrees to hold company stock for a minimum of six months 
B)  She does not possess non-public information 
C)  Her trading activities are authorized by her employment contract 
D)  All of the above 
A)  She agrees to hold company stock for a minimum of six months 
B)  She does not possess non-public information 
C)  Her trading activities are authorized by her employment contract 
D)  All of the above

Question 19

The key difference between bribery of a public official and bribery of a corporate employee is that:

Accepted Answer

A)  Only bribery of a public official is ever unlawful under anti-bribery criminal laws 
B)  Only bribery of a public official is unlawful under the Foreign Corrupt Practices Act 
C)  Only bribery of a public official can ever result in a prison sentence in the United States 
D)  Bribery of a corporate employee may exclusively be enforced through a civil action for damages by the corporation and never by government prosecution 
A)  Only bribery of a public official is ever unlawful under anti-bribery criminal laws 
B)  Only bribery of a public official is unlawful under the Foreign Corrupt Practices Act 
C)  Only bribery of a public official can ever result in a prison sentence in the United States 
D)  Bribery of a corporate employee may exclusively be enforced through a civil action for damages by the corporation and never by government prosecution

Question 20

Under the Foreign Corrupt Practices Act,a company can be held criminally liable:

Accepted Answer

A)  If it is more probable than not that it committed bribery 
B)  In a lawsuit filed by a government other than the United States 
C)  If it engaged in "willful blindness" to acts of bribery that furthered its economic interests 
D)  Only if documentary evidence confirms the existence of bribery 
A)  If it is more probable than not that it committed bribery 
B)  In a lawsuit filed by a government other than the United States 
C)  If it engaged in "willful blindness" to acts of bribery that furthered its economic interests 
D)  Only if documentary evidence confirms the existence of bribery

A CPA wishes to accept a commission from one client for marketing the client's software product to other clients served by the CPA.The CPA:

What are the different approaches that jurisdictions apply in regulating or punishing accountants who accept bribes in their capacities as employees of privately-held companies? How do you believe that this offense should be treated?

A facilitation payment:

A CPA,acting on behalf of a client company,makes a payment to a foreign government official to ensure that goods that are not entitled to be exported into that country are indeed allowed to enter that country.By doing so,the CPA has:

When are contingency fees permissible in rendering tax services?

An auditor has discovered that its audit client made numerous facilitation payments to foreign officials over the past two years.This client's stock trades on the New York Stock Exchange.The auditor should:

The "books and records" provisions of the Foreign Corrupt Practices Act:

In California,a CPA may:

Under the insider trading rules,a staff accountant who manages the collection and recording of a publicly-traded company's Accounts Receivable is:

If a company makes a payment to a foreign government official to ensure that goods that are not entitled to be exported into that country are indeed allowed to enter that country,the company has given:

Which of the following is not an "insider" for purposes of the insider trading rules?

Contingency fee arrangements are always allowed in tax matters if the amount of the fee an accountant is entitled to receive depends on:

What rule in the IFAC Code of Conduct governs an accountant's responsibilities when the accountant is offered a bribe?

The key difference between a kickback and a contingent fee is:

What rule or rules in the AICPA Code of Conduct govern an accountant's responsibilities when the accountant is offered a bribe?

When are contingency fees permissible in rendering management consulting services?

The Assistant Controller of a publicly-traded company may buy company stock as long as:

The key difference between bribery of a public official and bribery of a corporate employee is that:

Under the Foreign Corrupt Practices Act,a company can be held criminally liable:

Introduction to Ethics

Ethical Principles and Reasoning

The Core Philosophies

Virtue,justice,and Social Responsibility

Why We Cheat

Fraud and Earnings Management

Discreditable Acts: Discrimination,deceit,and Disclosure

Confidentiality

Independence and Moral Seduction

Conflicts of Interest

Duties As a Whistleblower

Duties of Public-Company Auditors: the Sarbanesoxley Act

Duties of Tax Professionals

Duties of Fiduciaries: Financial Planners,trustees,and Executors

Duties in the Accounting Workplace Online Only

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Exam 6: Greed,corruption,and Collusion

A CPA wishes to accept a commission from one client for marketing the client's software product to other clients served by the CPA.The CPA:

What are the different approaches that jurisdictions apply in regulating or punishing accountants who accept bribes in their capacities as employees of privately-held companies? How do you believe that this offense should be treated?

A facilitation payment:

A CPA,acting on behalf of a client company,makes a payment to a foreign government official to ensure that goods that are not entitled to be exported into that country are indeed allowed to enter that country.By doing so,the CPA has:

When are contingency fees permissible in rendering tax services?

An auditor has discovered that its audit client made numerous facilitation payments to foreign officials over the past two years.This client's stock trades on the New York Stock Exchange.The auditor should:

The "books and records" provisions of the Foreign Corrupt Practices Act:

In California,a CPA may:

Under the insider trading rules,a staff accountant who manages the collection and recording of a publicly-traded company's Accounts Receivable is:

If a company makes a payment to a foreign government official to ensure that goods that are not entitled to be exported into that country are indeed allowed to enter that country,the company has given:

Which of the following is not an "insider" for purposes of the insider trading rules?

Contingency fee arrangements are always allowed in tax matters if the amount of the fee an accountant is entitled to receive depends on:

What rule in the IFAC Code of Conduct governs an accountant's responsibilities when the accountant is offered a bribe?

The key difference between a kickback and a contingent fee is:

What rule or rules in the AICPA Code of Conduct govern an accountant's responsibilities when the accountant is offered a bribe?

When are contingency fees permissible in rendering management consulting services?

The Assistant Controller of a publicly-traded company may buy company stock as long as:

The key difference between bribery of a public official and bribery of a corporate employee is that:

Under the Foreign Corrupt Practices Act,a company can be held criminally liable:

Introduction to Ethics

Ethical Principles and Reasoning

The Core Philosophies

Virtue,justice,and Social Responsibility

Why We Cheat

Fraud and Earnings Management

Discreditable Acts: Discrimination,deceit,and Disclosure

Confidentiality

Independence and Moral Seduction

Conflicts of Interest

Duties As a Whistleblower

Duties of Public-Company Auditors: the Sarbanesoxley Act

Duties of Tax Professionals

Duties of Fiduciaries: Financial Planners,trustees,and Executors

Duties in the Accounting Workplace Online Only

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