CCA CCA Ethics & Corporate Governance 1

Question 1

Under the AICPA Code of Professional Conduct, which fundamental principle requires a CPA to be straightforward and honest in professional and business relationships?

Accepted Answer

Integrity

Answer

The integrity principle requires CPAs to be straightforward and honest, avoiding subordination of professional judgment to client or employer pressure.

Question 2

What is the primary role of a board of directors' audit committee?

Accepted Answer

To oversee the financial reporting process, internal controls, and the external auditor relationship

Answer

The audit committee oversees financial reporting integrity, monitors internal control systems, and serves as the direct link between the board and the external auditors.

Question 3

Which of the following best describes a conflict of interest for a corporate accountant?

Accepted Answer

Having a personal financial stake in decisions that should be made objectively for the employer

Answer

A conflict of interest arises when a professional has personal interests that could impair their objective judgment in performing duties for an employer or client.

Question 4

The Sarbanes-Oxley Act (SOX) Section 302 requires corporate officers to:

Accepted Answer

Certify the accuracy of financial statements and effectiveness of disclosure controls

Answer

SOX Section 302 requires the CEO and CFO to personally certify the accuracy of financial statements and assess the effectiveness of disclosure controls and procedures.

Question 5

What does the concept of 'fiduciary duty' mean for a corporate officer?

Accepted Answer

The legal and ethical obligation to act in the best interests of the company and its shareholders

Answer

Fiduciary duty requires corporate officers to act with loyalty and care in the best interests of the company and its shareholders, not their own personal interests.

(CCA) Certified Corporate Accountant Practice Test

(CCA) Certified Corporate Accountant Practice Test

CCA CCA Ethics & Corporate Governance 1