4 ethics questions

1. Which of the following statements best describes why the profession of public accounting has deemed it essential to promulgate a CPC and to establish a mechanism for enforcing observance of the code?

a. A distinguishing mark of a profession is its acceptance of responsibility to the public.
b. A prerequisite to success is the establishment of an ethical code that stresses primarily the professional's responsibility to clients and colleagues.
c. A requirement of most state laws calls for the profession to establish a code of ethics.
d. An essential means of self-protection for the profession is the establishment of flexible ethical standards.

2. The AICPA CPC states, in part, that a CPA should maintain integrity and objectivity. Objectivity in the code refers to a CPA's ability

a. To maintain an impartial attitude on all matters which come under the CPA's review.
b. To independently distinguish between accounting practices that are acceptable and those that are not.
c. To be unyielding in all matters dealing with auditing procedures.
d. To independently choose between alternate accounting principles and auditing standards.

3. Upon discovering irregularities in a client's tax return that the client would not correct, a CPA withdraws from the engagement. How should the CPA respond if asked by the successor CPA why the relationship was terminated?

a. "It was a misunderstanding."
b. "I suggest you get the client's permission for us to discuss all matters freely."
c. "I suggest you ask the client."
d. "I found irregularities in the tax return which the client would not correct."

4. The Code of Professional Conduct derives its authority from the

a. Financial Accounting Standards Board.
b. Auditing Standards Board.
c. Bylaws of the American Institute of CPAs.
d. Securities and Exchange Commission.

1. A
2. A
3. B
4. C