Question 1

A CPA who is a member of the AICPA failed to abide by the AICPA's Code of Professional Conduct.The state in which she practices accounting requires all CPAs to abide by "all professional standards." This state requirement mandates that the CPA follow:

Accepted Answer

The state requirement mandates that the CPA follow all professional standards, which include generally accepted accounting principles, generally accepted auditing standards, and the AICPA's Code of Professional Conduct. Therefore, the CPA must follow all of the above.

Question 2

The AICPA's Code of Professional Conduct expresses professional standards:

Accepted Answer

The AICPA's Code of Professional Conduct establishes mandatory minimum rules of behavior that all members must adhere to. Violations of the code may result in disciplinary action by the AICPA, state boards of accountancy, or other regulatory bodies, but they do not necessarily constitute crimes. The standards are not necessarily worldwide but are specific to the AICPA.

Question 3

The SEC had:

Accepted Answer

The SEC did not have any role in the development of the AICPA Code of Professional Conduct. The AICPA Code of Professional Conduct is developed and updated by the Professional Ethics Executive Committee of the AICPA.

Question 4

A CPA who is a member of the AICPA failed to abide by the AICPA's Code of Professional Conduct.The state in which she practices accounting requires all CPAs to abide by "all professional standards." This CPA's license to practice accounting will potentially be:

Accepted Answer

The CPA's license could potentially be suspended or revoked due to failure to comply with professional standards, as required by the state.

Question 5

An Enrolled Agent is subject to the AICPA's Code of Professional Conduct:

Accepted Answer

An Enrolled Agent is subject to the AICPA's Code of Professional Conduct only if she is granted membership in the AICPA, as the code applies to its members.

Question 6

The rules of the AICPA are required to be:

Accepted Answer

The AICPA rules must at least meet the minimum standards set by the IFAC, ensuring they are not more lenient.

Question 7

Can you identify a financial accounting decision that requires an accountant working in industry to make an ethical choice?

Accepted Answer

The answer of Can you identify a financial accounting decision...

Question 8

IFAC is often referred to as:

Accepted Answer

IFAC, the International Federation of Accountants, is often referred to as an "Organization of Organizations" because it is a global organization that brings together national accounting organizations from around the world.

Question 9

The AICPA's Code of Professional Conduct establishes:

Accepted Answer

The AICPA's Code of Professional Conduct establishes the normative rules of ethical behavior that guide professional accountants. It outlines the principles that members of the profession should follow in order to maintain their integrity and objectivity, and it provides guidance for resolving ethical dilemmas. While the Code does address some aspects of conducting audits and other attestation engagements, its primary focus is on ethical behavior.

Question 10

If a single woman is working as a professional accountant outside the United States,joining IFAC is:

Accepted Answer

The answer of If a single woman is working as...

Question 11

The membership rules of IFAC:

Accepted Answer

The International Federation of Accountants (IFAC) is a global organization for the accountancy profession, and it does not offer individual memberships. Instead, it comprises member organizations, which are professional accountancy bodies.

Question 12

Membership in the AICPA:

Accepted Answer

Membership in the AICPA does not automatically entitle a CPA to join IFAC. IFAC membership is separate and requires its own application and criteria.

Question 13

The AICPA's Code of Professional Conduct expressly applies to:

Accepted Answer

The AICPA's Code of Professional Conduct applies to all CPAs who voluntarily join the organization. It is not dependent on state law or the current status of a CPA's license.

Question 14

Identify an ethical dilemma that you have encountered.How did you resolve it? Looking back,could you have achieved a better resolution?

Accepted Answer

The answer of Identify an ethical dilemma that you have...

Question 15

The AICPA's Code of Professional Conduct:

Accepted Answer

The AICPA's Code of Professional Conduct potentially applies to all licensed CPAs, whether they work in government, industry, academia, or public practice. The Code outlines ethical and professional standards for all members of the profession. It does not provide a comprehensive definition or set of accounting standards.

Question 16

Normative ethics focuses on:

Accepted Answer

Normative ethics is concerned with how people should behave, rather than how they currently behave (A and B) or the conduct of a specific profession (D).

Question 17

A CPA who is not a member of the AICPA failed to abide by the AICPA's Code of Professional Conduct.The state in which she practices accounting requires all CPAs to abide by "all professional standards." This CPA's license to practice accounting will potentially be:

Accepted Answer

The CPA's license could potentially be suspended or revoked because the state requires adherence to all professional standards, which includes the AICPA's Code of Professional Conduct, even if the CPA is not a member of the AICPA.

Question 18

Can you identify a tax accounting decision that requires an accountant working in the Tax Department of a small Limited Liability Company to make an ethical choice?

Accepted Answer

The answer of Can you identify a tax accounting decision...

Question 19

The IFAC Code of Conduct applies to:

Accepted Answer

The IFAC Code of Conduct applies to all professional accountants, regardless of their role or industry, as it sets ethical standards for the global accounting profession.

Question 20

Can you identify a tax accounting decision that requires a tax return preparer for individual clients to make an ethical choice?

Accepted Answer