CPA CPA Ethics & Professional Responsibilities

Question 1

Which AICPA Code of Professional Conduct principle requires CPAs to act in a manner that will serve the public interest?

Accepted Answer

Public Interest

Answer

Integrity

Answer

Objectivity

Answer

Due Care

Question 2

Under the AICPA independence rules, which of the following would impair a CPA's independence when performing an audit?

Accepted Answer

Owning a direct financial interest in the client

Answer

Owning an immaterial financial interest in the client

Answer

Having a sibling employed by the client in a non-key position

Answer

Receiving a referral fee disclosed to the client

Question 3

A CPA discovers a material error in a previously issued tax return. What is the CPA's primary obligation?

Accepted Answer

Inform the client and recommend corrective action

Answer

File an amended return immediately without client consent

Answer

Notify the IRS directly

Answer

Withdraw from the engagement immediately

Question 4

Which of the following is NOT a threat to CPA independence identified by the AICPA?

Accepted Answer

Competence threat

Answer

Self-interest threat

Answer

Familiarity threat

Answer

Advocacy threat

Question 5

The AICPA's concept of 'due professional care' requires a CPA to perform services with the:

Accepted Answer

Competence and diligence of a reasonable CPA

Answer

Highest possible level of technical expertise

Answer

Same skill level as a specialist in the field

Answer

Speed necessary to meet client deadlines

Question 6

A CPA in public practice may NOT receive a contingent fee for:

Accepted Answer

Preparation of an original tax return

Answer

Services in tax matters before a tax court

Answer

Representation in an IRS examination

Answer

Filing a refund claim after audit assessment