Question 1

Which of the following is not a PFP engagement?&#10;A)Coordinating Engagement.&#10;B)Implementation Engagement.&#10;C)Monitoring Engagement.&#10;D)Updating Engagement.

Accepted Answer

Coordinating Engagement is not a recognized type of Personal Financial Planning (PFP) engagement. PFP engagements typically include planning, implementation, monitoring, and updating aspects related to personal financial goals.

Question 2

Applicability of the SSPFPS No.1 is a _____________ part test.&#10;A)Two.&#10;B)Three.&#10;C)Four.&#10;D)Seven.

Accepted Answer

The applicability of the SSPFPS No.1 is a two-part test, which typically involves determining whether specific criteria are met for the standard to apply.

Question 3

The SSPFPS No.1 provides _____________ guidance and establishes ___________ standards for members.&#10;A)Authoritative / service.&#10;B)Reasoned / service.&#10;C)Authoritative / enforceable.&#10;D)Reasoned / enforceable.

Accepted Answer

The use of "authoritative" and "enforceable" in the statement suggest that the guidance provided by SSPFPS No.1 is authoritative and formally establish enforceable standards for members, making option C the most suitable answer.

Question 4

The CPA/PFS should document their understanding of the implementation engagement,including the roles and responsibilities of the CPA/PFS,the client,and other service providers.Documentation should include all of the following except:

A)Client's evaluation of progress toward achieving the client's financial planning goals,including whether the client's existing financial plan and specific financial recommendations should be updated.
B)Criteria that are important to the achievement of the financial planning goals being monitored.
C)Frequency and time period of measuring the clients progress toward reaching the stated goals.
D)Utilization of monitoring criteria that are appropriate to,and consistent with,the criteria used to establish the goals being monitored.

Accepted Answer

All of the options listed (B, C, and D) are appropriate areas for documentation of the implementation engagement, but option A refers to the client's evaluation of progress, which is not something that the CPA/PFS needs to document. Instead, the CPA/PFS should be evaluating progress and updating recommendations as needed.

Question 5

Which of the following was used as a 'de facto' standard for CPAs by state boards of accountancy?&#10;A)AICPA Code of Professional Conduct.&#10;B)Investment Advisers Act of 1940.&#10;C)Statement on Responsibilities in Personal Financial Planning Practice.&#10;D)Statement on Standards in Personal Financial Planning Services No.1.

Accepted Answer

The answer of Which of the following was used as...

Question 6

The historical timeline for personal financial planning in the United States began in&#10;A)1940.&#10;B)1969.&#10;C)1981.&#10;D)2014.

Accepted Answer

The historical timeline for personal financial planning in the United States began in 1969 with the establishment of the Institute of Certified Financial Planners, which later became the Certified Financial Planner Board of Standards. This marked the beginning of professionalization and standardization of financial planning services in the US.

Question 7

Which of the following scenarios is false regarding the applicability of the SSPFPS No.1:&#10;A)Only when a member represents to clients that the member provides PFP services.&#10;B)When a member engages in activities that require registration as an investment adviser under federal or state law.&#10;C)When a member includes the CPA/PFS designation on their website.&#10;D)When a member sells a product as a result of an engagement.

Accepted Answer

The SSPFPS No.1 applies to all members of the AICPA who provide PFP services regardless of whether they represent to clients that they do so. This means that even if a member does not explicitly hold themselves out as providing PFP services, if they engage in any activities that fall under the definition of PFP services, then the SSPFPS No.1 applies. Choices B, C, and D are all accurate scenarios in which the SSPFPS No.1 would apply.

Question 8

Practice standards accomplish which of the following:
I)Outline consumer expectations of practitioners
II)Outline practitioner expectations of consumers
III)Protect consumers
IV)Protect practitioners

A)I,IV.
B)III,IV.
C)I,III.
D)II,IV.

Accepted Answer

Practice standards outline consumer expectations of practitioners and protect consumers, but do not outline practitioner expectations of consumers or solely protect practitioners.

Deck 2: The Statement on Standards in Personal Financial Planning Services No