Question 1

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 B

Question 2

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 C

Question 3

Discuss the pros and cons of contingency fees from an accountant's standpoint.

Accepted Answer

Contingency fees can be both beneficial and challenging for accountants. On the positive side, contingency fees provide an opportunity for accountants to take on clients who may not have the financial resources to pay upfront for their services. This can expand the accountant's client base and potentially lead to higher overall earnings. Additionally, contingency fees can incentivize accountants to work diligently and efficiently, as their compensation is directly tied to the outcome of their work.

However, there are also drawbacks to contingency fees from an accountant's standpoint. One major concern is the potential for conflicts of interest. If an accountant's compensation is contingent on a specific outcome, there may be pressure to prioritize that outcome over the client's best interests. This can compromise the integrity and objectivity of the accountant's work. Additionally, contingency fees can create uncertainty in the accountant's income, as they are reliant on the success of their clients' cases or financial situations. This can make financial planning and stability more challenging.

Overall, while contingency fees can offer opportunities for accountants to expand their client base and incentivize efficient work, they also present ethical and financial challenges that must be carefully considered. It's important for accountants to weigh the pros and cons and carefully evaluate each potential contingency fee arrangement to ensure it aligns with their professional standards and business goals.

Question 4

Under insider trading rules applicable to publicly traded companies, an accountant is considered to be an "insider":

Accepted Answer

A)  Only if she Is a full-time accounting staff member of a company 
B)  Only if she is an internal auditor of a company 
C)  Only if she serves in a financial reporting oversight role 
D)  Even if she is only temporarily on the company's premises as an external auditor 
A)  Only if she Is a full-time accounting staff member of a company 
B)  Only if she is an internal auditor of a company 
C)  Only if she serves in a financial reporting oversight role 
D)  Even if she is only temporarily on the company's premises as an external auditor

Question 5

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 6

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 7

Which of the following would most likely be classified as a facilitation payment?

Accepted Answer

A)  A payment that encourages a high-ranking government official to facilitate a new business deal with a foreign supplier 
B)  A payment that encourages a lower-level government official to perform a routine service more rapidly than it otherwise would be performed 
C)  A payment that encourages a private-sector company to accelerate the delivery of goods or services in an international shipping transaction 
D)  A payment that provides a lawful commission to a foreign agent or representation to enable a plant or other operational facilities to bypass certain regulations established by the Foreign Corrupt Practices Act 
A)  A payment that encourages a high-ranking government official to facilitate a new business deal with a foreign supplier 
B)  A payment that encourages a lower-level government official to perform a routine service more rapidly than it otherwise would be performed 
C)  A payment that encourages a private-sector company to accelerate the delivery of goods or services in an international shipping transaction 
D)  A payment that provides a lawful commission to a foreign agent or representation to enable a plant or other operational facilities to bypass certain regulations established by the Foreign Corrupt Practices Act

Question 8

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 9

The rules governing contingent fee arrangements do not permit a tax practitioner to charge a contingent fee for rendering:

Accepted Answer

A)  Tax planning services 
B)  Payroll tax processing services 
C)  The preparation of a request for a refund of previously overpaid taxes 
D)  Taxpayer advocacy in an IRS administrative hearing 
A)  Tax planning services 
B)  Payroll tax processing services 
C)  The preparation of a request for a refund of previously overpaid taxes 
D)  Taxpayer advocacy in an IRS administrative hearing

Question 10

The "books and records" requirement of the Foreign Corrupt Practices Act require a firm involved in international commerce to maintain especially tight internal controls over transactions involving:

Accepted Answer

A)  Depreciation expense on real estate situated in foreign countries in which it does business 
B)  Travel and Entertainment Expense 
C)  Bonds Payable 
D)  The amortization of Bond Discounts and Premiums 
A)  Depreciation expense on real estate situated in foreign countries in which it does business 
B)  Travel and Entertainment Expense 
C)  Bonds Payable 
D)  The amortization of Bond Discounts and Premiums

Question 11

A CPA, acting on behalf of a client company, makes a payment to a foreign government official to ensure that goods that are entitled to be exported into that country are processed more rapidly than other competing shipments into that country are processed. By doing so, the CPA has:

Accepted Answer

A)  Committed a direct violation of the Foreign Corrupt Practices Act's provision concerning "financial professionals and other client representatives" 
B)  Not jeopardized her professional license 
C)  Jeopardized her professional license if she also performed sales tax reporting services for that client during the same reporting period 
D)  Definitely jeopardized her professional license 
A)  Committed a direct violation of the Foreign Corrupt Practices Act's provision concerning "financial professionals and other client representatives" 
B)  Not jeopardized her professional license 
C)  Jeopardized her professional license if she also performed sales tax reporting services for that client during the same reporting period 
D)  Definitely jeopardized her professional license

Question 12

If a CPA charges a contingent fee in connection with providing professional services to a review client, the CPA's fee arrangement is:

Accepted Answer

A)  Permissible always 
B)  Permitted only if the fee arrangement is expressed in a clear writing signed by the client 
C)  Permitted only if the fee is reasonable in amount 
D)  Never permissible 
A)  Permissible always 
B)  Permitted only if the fee arrangement is expressed in a clear writing signed by the client 
C)  Permitted only if the fee is reasonable in amount 
D)  Never permissible

Question 13

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

Question 14

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 15

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 16

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 17

If a CPA charges a contingent fee in connection with providing management consulting services to a non-audit client, the CPA's fee arrangement is:

Accepted Answer

A)  Permissible always 
B)  Permitted only if the fee arrangement is expressed in a clear writing signed by the client 
C)  Permitted only if the CPA is not a member of the AICPA 
D)  Never permissible 
A)  Permissible always 
B)  Permitted only if the fee arrangement is expressed in a clear writing signed by the client 
C)  Permitted only if the CPA is not a member of the AICPA 
D)  Never permissible

Question 18

Mary, a CPA, accepted a fee from Rajiv, a CPA, for referring one of Mary's clients to him. Mary's client was not informed of this referral fee. Was Mary's acceptance of this fee permitted by applicable professional rules?

Accepted Answer

A)  Yes, if Rajiv possesses specialized skills that Mary lacked 
B)  Yes, if Rajiv possesses specialized skills that Mary lacks and Rajiv agreed to a non-contingent referral fee arrangement with Mary prior to provide services to the referred client 
C)  Yes, as long Mary's fee arrangement is a lump-sum amount rather than a percentage of the amount that Rajiv bills this client for his services 
D)  No 
A)  Yes, if Rajiv possesses specialized skills that Mary lacked 
B)  Yes, if Rajiv possesses specialized skills that Mary lacks and Rajiv agreed to a non-contingent referral fee arrangement with Mary prior to provide services to the referred client 
C)  Yes, as long Mary's fee arrangement is a lump-sum amount rather than a percentage of the amount that Rajiv bills this client for his services 
D)  No

Question 19

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 20

When are contingency fees permissible in rendering management consulting services?

Accepted Answer

Contingency fees in management consultin

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

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

Discuss the pros and cons of contingency fees from an accountant's standpoint.

Under insider trading rules applicable to publicly traded companies, an accountant is considered to be an "insider":

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

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

Which of the following would most likely be classified as a facilitation payment?

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

The rules governing contingent fee arrangements do not permit a tax practitioner to charge a contingent fee for rendering:

The "books and records" requirement of the Foreign Corrupt Practices Act require a firm involved in international commerce to maintain especially tight internal controls over transactions involving:

A CPA, acting on behalf of a client company, makes a payment to a foreign government official to ensure that goods that are entitled to be exported into that country are processed more rapidly than other competing shipments into that country are processed. By doing so, the CPA has:

If a CPA charges a contingent fee in connection with providing professional services to a review client, the CPA's fee arrangement is:

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

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

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:

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

If a CPA charges a contingent fee in connection with providing management consulting services to a non-audit client, the CPA's fee arrangement is:

Mary, a CPA, accepted a fee from Rajiv, a CPA, for referring one of Mary's clients to him. Mary's client was not informed of this referral fee. Was Mary's acceptance of this fee permitted by applicable professional rules?

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:

When are contingency fees permissible in rendering management consulting services?

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

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

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

Discuss the pros and cons of contingency fees from an accountant's standpoint.

Under insider trading rules applicable to publicly traded companies, an accountant is considered to be an "insider":

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

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

Which of the following would most likely be classified as a facilitation payment?

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

The rules governing contingent fee arrangements do not permit a tax practitioner to charge a contingent fee for rendering:

The "books and records" requirement of the Foreign Corrupt Practices Act require a firm involved in international commerce to maintain especially tight internal controls over transactions involving:

A CPA, acting on behalf of a client company, makes a payment to a foreign government official to ensure that goods that are entitled to be exported into that country are processed more rapidly than other competing shipments into that country are processed. By doing so, the CPA has:

If a CPA charges a contingent fee in connection with providing professional services to a review client, the CPA's fee arrangement is:

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

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

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:

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

If a CPA charges a contingent fee in connection with providing management consulting services to a non-audit client, the CPA's fee arrangement is:

Mary, a CPA, accepted a fee from Rajiv, a CPA, for referring one of Mary's clients to him. Mary's client was not informed of this referral fee. Was Mary's acceptance of this fee permitted by applicable professional rules?

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:

When are contingency fees permissible in rendering management consulting services?

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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