_____ means that a person acts according to conscience, regardless of the situation.

Which of the following is a prescribed set of moral principles or values?

One of the main reasons people act unethically is that they choose to act selfishly.

Most people define unethical behavior as conduct that differs from what they believe is appropriate given the circumstances.

PCAOB inspections, especially information related to future inspections which will be made by the PCAOB staff and personnel of public company audits, is publicly available information.

Ethical values such as caring have been incorporated into the laws, as caring now been defined enough to be legally enforceable.

A six-step approach is often used to resolve an ethical dilemma. The first step in this process is to

Ethical frameworks help identify the ethical issues and will always lead to the appropriate course of action.

A rationalization method that can easily result in unethical behavior is the argument that "everybody does it."

If an action is considered legal, it must also be considered ethical.

The likelihood of discovery and the consequences of unethical conduct can easily result in unethical conduct.

Auditors and accountants do not face many ethical dilemmas during their respective business careers.

An ethical dilemma is a situation in which a decision must be made about appropriate behavior. Identify which of the following are steps in the six-step approach presented in the text to resolve the dilemma.

The underlying reason for a code of professional conduct for any profession is

Which of the following statements is true when the CPA has been engaged to perform an audit of financial statements?

The ______ is a standard of conduct for all members of the AICPA.

Professionals are expected to conduct themselves at a higher level than most other members of society. Select whether the statement is true or false.

CPA firms have a similar relationship with the users of financial statements which they audit compared to the relationship other professionals have with their customers. Select whether the statement is true or false.

Users of financial statements believe that CPA firms reduce the information risk associated with financial statements. Select whether the statement is true or false.

Users of financial statements have the time and the ability to evaluate the audit performance of a CPA firm. Select whether the statement is true or false.

Why is there a special need for ethical conduct in the auditing profession?

Which of the following is(are) true concerning the Ethical Principles of the Code of Professional Conduct? I. They identify ideal conduct. II. They are general ideals and are not enforceable.

Which of the following is not one of the major parts of the AICPA's Code of Professional Conduct?

One of the AICPA's Ethical Principles deals with the public interest. It states that members should accept the obligation to act in a way that will

A CPA performs bookkeeping services for a client and then performs an audit of those financial statements. This is an example of a ________ threat.

Since the rules cannot address all circumstances, the Code includes a conceptual framework approach for members to use to evaluate threats to compliance. Using this framework,

Which part of the AICPA's Code of Professional Conduct is enforceable?

Interpretations of the rules of conduct

The AICPA's Code of Professional Conduct requires independence for all

When a member observes the profession's technical and ethical standards and strives to continually improve her competence and quality of services, she is exercising

Four of the six Ethical Principles in the AICPA's Code of Professional Conduct are equally applicable to all members of the AICPA. Which of the following principles applies only to members in public practice?

The Code of Professional Conduct is established by the membership of the AICPA, and the Interpretations of the Rules of Conduct are prepared by the

Due to a shortage of personnel, the client asks a member firm to assist with the authorization of accounting transactions. This is an example of which type of threat to compliance with which of the rules under the AICPA's Code of Professional Conduct?

It becomes obvious that a member of a CPA firm has developed a close relationship with an attest client. This is an example of which type of threat to compliance with rules under the AICPA's Code of Professional Conduct?

An officer participates in litigation against the CPA firm. This is an example of which type of threat to compliance with rules under the AICPA's Code of Professional Conduct?

A member actively endorses an attest client's products or services. This is an example of which type of threat to compliance with rules under the AICPA's Code of Professional Conduct?

An attest client threatens the member with not awarding future additional engagements to the firm if the firm does not agree with the client on a particular accounting matter. This is an example of which type of threat to compliance with rules under the AICPA's Code of Professional Conduct?

An advantage of specific rules in the Code of Professional Conduct is the enforceability of minimum behavior and performance standards.

It is a violation of the rules of conduct if someone does something on behalf of a member that is a violation if the member does it.

An advantage of the principles of professional conduct in the Code of Professional Conduct is that they are more easily enforced than are the specific rules of conduct.

Safeguards can always reduce the threat to an acceptable level.

Interpretations of rules of conduct in the Code of Professional Conduct are not officially enforceable and practitioners need not justify departure from them.

Adverse interest is the threat that a member will not act with objectivity because their interests are opposed to the client's interests.

In the AICPA's Code of Professional Conduct, the second principle of professional conduct, entitled "The Public Interest," applies only to members of the AICPA in public practice and not to members who work as accountants in business, government, or education.

In the AICPA's Code of Professional Conduct, the sixth principle of professional conduct, entitled "Scope and Nature of Services," applies to members of the AICPA who work in public practice, business, government, or education.

The Conceptual Framework for AICPA Independence Standards can be used when making decisions on ethical matters not explicitly addressed in the Code.

Each state also has rules of conduct that are required for licensing by the state.

Which of the following are among the seven broad categories of threats to compliance with the AICPA's Code of Professional Conduct? Select all that apply.

The AICPA Code of Conduct includes a conceptual framework approach for members to evaluate threats to compliance with the Code. Which steps are necessary to evaluate the threats? Select all that apply.

Which of the following are Ethical Principles stated in the Code of Professional Conduct? Select all that apply.

For which of the following professional services must CPAs be independent?

"Independence" in auditing means

When CPAs are able to maintain their actual independence, it is referred to as independence in

The Sarbanes-Oxley Act ______ a CPA firm from doing both bookkeeping and auditing services for the same public company client.

Interpretations of the independence rule of the AICPA Code prohibit covered members from owning any stock or other direct investment in audit clients. Covered members would include which of the following?

The financial interests of a CPA's family members can affect the CPA's independence. Which of the following parties would not be included as a direct financial interest of the CPA?

Interpretations of the rules regarding independence allow an auditor to serve as

Independence is required of a CPA when performing

CPAs may provide bookkeeping services to their private company audit clients, but there are a number of conditions that must be met if the auditor is to maintain independence. Which of the following conditions is not necessary?

An example of an "indirect financial interest in a client" would be

When determining whether independence is impaired because of an ownership interest in a client company, materiality will affect ownership

A direct financial interest violates independence in which of the following circumstances?

A CPA sole practitioner purchased stock in a client corporation and placed it in a trust as an educational fund for the CPA's minor child. The trust securities were not material to the CPA but were material to the child's personal net worth. Would the independence of the CPA be considered to be impaired with respect to the client?

Julie and Lisa are sisters. Julie is a CPA auditing the company where Lisa works. Julie's independence is impaired if

Oehlers, CPA, is a staff auditor participating in the engagement of Capital Trust, Inc. Which of the following circumstances impairs Oehlers' independence?