Certified Public Accountant Professional Standards & Competencies 5

Question 1

The AICPA's 'Integrity' principle requires CPAs to be:

Accepted Answer

Honest and candid, even when it disadvantages the CPA or client

Answer

Integrity requires honest and candid communication within the constraints of confidentiality, even when the truth is inconvenient.

Question 2

Which of the following best describes the 'attestation risk' in an attestation engagement?

Accepted Answer

The risk that the practitioner expresses an inappropriate conclusion

Answer

Attestation risk is the risk that the practitioner expresses an inappropriate opinion or conclusion on subject matter that is materially misstated.

Question 3

A CPA must retain audit documentation for a minimum of how many years under AICPA standards for a nonpublic company audit?

Accepted Answer

7 years

Answer

AU-C Section 230 requires retention of audit documentation for at least five years from the report release date — though seven years is common in practice and required by PCAOB for public companies.

Question 4

Under the AICPA Code, a CPA is permitted to disclose confidential client information without client consent in which scenario?

Accepted Answer

In response to a valid subpoena or court order

Answer

ET Section 1.700 permits disclosure without client consent when required by a valid legal process such as a court order or subpoena.

Question 5

The 'competence' general standard requires that a CPA undertake only engagements that the firm can complete with:

Accepted Answer

Professional competence through training, education, or consultation

Answer

A CPA may accept an engagement in a new area if they can attain competence through education, training, or consultation with qualified specialists.

Certified Public Accountant Practice Test

Certified Public Accountant Practice Test

Certified Public Accountant Professional Standards & Competencies 5