1.Consider the following statements:

I.Regarding the AICPA Code of Professional Conduct, Principles of Professional Conduct are

enforceable.

II.The rules contained in Section 1.100 cover issues relating to"Acts discreditable".

a.I is true; II is true

b.I is true; II is false

c. I is false; II is true

d.I is false; II is false

2.Consider the following statements:

I.If an auditor is not independent of the client, it is unlikely that the user of financial statements will

place much reliance on the CPA's work.

II."A member in public practice shall be independent in the performance of professional services as required by standards promulgated by bodies designated by Council" can be found in Section 1.200.001 of the AICPA'S Code of Conduct.

a.I is true; II is true

b.I is true; II is false

c.I is false; II is true

d.I is false; II is false

3.Which of the following is not considered one of the seven categories of threats to a CPAs integrity

and objectivity ?

a.Adverse Interest threats.

b.Familiarity threats.

c.Public Interest threats

d.Self review threats.

e.All are considered threats to integrity and objectivity.

4.According to the AICPA's Code of Professional Conduct, which of the following individuals is in a

position to influence an attest engagement managed in the Boston office of a CPA firm (i.e. a

covered member)?

a.The Boston office's managing partner who determines the compensation of the engagement

partner.

b.Any Professional staff in the Seattle office of the CPA firm.

c.Partners in the Seattle office of the CPA firm.

d.Any Professional staff in the Boston office of the CPA firm.

e.All of the above

f.None of the above.

5.In which of the following instances would independence be considered to be impaired?The CPA has

been retained as the auditor of a company

a.and the CPA lives in the same town as the controller.

b.in which the CPA's sister is the Chief Financial Officer..

c.which owes the CPA audit fees for current year services.The company being audited has just filed a petition for bankruptcy.

d.All of the above.

e.None of the above

6.The partner of ABC CPA firm doing the audit of EmilyAnne Company owns a few shares of EmilyAnneCompany common stock (worth about $20).Thus ABC CPA firm would not be consideredindependent of EmilyAnne Company.What concept is most likely involved? (consider for final exam)

a.Independence in appearance

b.Independence in attitude

c. Independence in exercise

d. Independence in fact

7.In which of the following circumstances would a CPA be allowed to disclose any confidential

information obtained during the course of a professional engagement?

a.The CPA receives a request from a local newspaper about a recent audit of a company.

b.A major stockholder of a client company seeks accounting information from the CPA after

management declined to disclose the requested information.

c.To comply with an investigative or disciplinary hearing.

d.As an assignment, auditing students ask to look at the CPA's audit work papers.

e.For all of the above, information can be disclosed without problems relating to confidentiality.

8.What "refers to a system ... based on moral duties and obligations that indicate how an individual

should interact with others in society"

a.Auditingc.Code of behavior

b.Ethicsd.Professionalism

9.Which ethical theory is "... important to auditors because of their public-interest responsibility..."?

a.Utilitarianism.

b.Rights-based approach.

c.Professional skepticism.

d.Justice-based approach.

10.A CPA uses "discrimination and harassment in employment practices".This would involve which of

the following?

a.Acts Discreditable Rule.

b.Compliance with Standards Rule.

c.General Standards Rule.

d.Independence Rule.