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1.
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A profession has certain attributes that are evident. A distinguishing attribute is: 3
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  Standards that are devoted to the profession;
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Rules of conduct;
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Technical attributes;
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Regulations.
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2.
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A rich ethics-based strategy for organizations post-Enron has a foundation based on the fact that: 2
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Values and ethics are exactly the same;
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An ethical-based strategy is richer in values;
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Ethics are public; values are private;
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Generation Y learners are private.
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3.
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The Public Company Accounting Oversight Board (PCAOB) was established: 4
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In 1998;
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As a result of the scandals and the lack of credibility of CPA's;
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By the Securities and Exchange Commission because of requirements in the SEC Act of 1933;
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Because recent scandals created the Canadian Public Accountability Board.
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4.
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A fiduciary relationship exists with clients and CPA's because: 5
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CPA's always try to keep their clients satisfied;
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Being a fiduciary requires knowledge of accounting;
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Services are different because of the level of expertise of a professional accountant who is trusted;
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CPA's are generally competent.
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5.
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The public interest means that: 6
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The public is government-supported;
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The group served by accountants according to KPMG;
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The group served by accountants according to SOX;
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The group serviced by only CPA's.
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6.
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The most effective way to establish an ethics program is: 11
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To call KPMG and Coopers and Lybrand;
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To use principles set forth in the KPMG Ethics Toolkit;
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To call a CPA who follows the IRS Tax Code;
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To call a hotline and report the wrongs in the company.
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7.
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Not conforming to GAAP is a serious violation that is: 13
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Committed by 71 percent of CPA's;
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Violated and in conformance with the Principle of Objectivity;
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Committed by about half of CPA's;
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CPA's never fail to conform to GAAP.
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8.
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The best way to conform with the Due Care Standard is to: 14
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Follow GAAP at all costs;
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Perform audits in accordance with GAAS;
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Only accept relationships where there is trust;
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Never complete an audit for large, public companies.
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9.
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CPA professionals: 17
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Follow the AICPA Professional Code of Conduct if the accountants are members of the AICPA;
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Follow the AICPA Professional Code of Conduct if they perform audits;
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Follow the SEC's Professional Code of Conduct after SOX;
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Follow their own ethics.
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10.
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To appear to be independent, the CPA should avoid circumstances that would cause an informed third party to reasonably conclude that the integrity, objectivity, or professional skepticism of a firm or member of the audit engagement: 14
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Was compromised;
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CPA's must be independent for all services;
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CPA's must always appear to be independent;
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CPA's must follow an integrity-based program for the public interest.
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11.
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To be independent, CPA's must consider the following: 23
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Independence must be in fact and in appearance for all engagements;
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The required standards apply to all public companies only;
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The required standards apply to all privately held companies only;
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The required standards apply to all not-for-profit entities.
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12.
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Which of the following is true about PCAOB audit standards? 24
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The required standards apply to all public companies;
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They compromised journal entries in order to fool the auditors;
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They were audited by KPMG;
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They ran out of cash because of the recession.
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13.
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When solving an ethical dilemma: 18
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One should follow two schools of thought;
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One should analyze the consequences, analyze the actions, and make a decision;
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One should report matters to a whistle-blower;
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One should follow the Golden Rule.
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14.
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The objectivity standard refers to: 13
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Engagements that have fiduciary relationships;
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The quality of services performed by the CPA;
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Regulations that CPA's take an oath to abide with;
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Only tax matters.
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15.
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The concept of fairness is a characteristic: 11
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That is advocated by the Josephenson Institute in accordance with GAAP;
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That must be fully disclosed;
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That applies to accountants in the preparation of financial statements that are without bias and are transparent;
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Is an element of the ladder of character.
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16.
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Frauds are often explained by the Fraud Triangle. The explanation is: 23
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pressure exists to commit fraud and boast about its existence;
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opportunity is nonexistent; rationalization occurs; pressure is eliminated;
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opportunity for fraud is curtailed with a code of ethics;
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opportunity exists; pressure exists; behavior if rationalized.
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17.
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According to a study by the Associaion of Certified Fraud Examiners, the annual cost of occupational fraud in the U.S. is:
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$60 billion;
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$600 million;
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$600 billion;
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None of the above.
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18.
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The Six Pillars of Character are the foundation for: 9
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The Josephenson Institute;
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Integrity;
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The AICPA Code of Professional Conduct;
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Values-based education.
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19.
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Better knowledge of morals came about because: 2
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Kohlberg researched the stages of moral development;
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Values are not the underlying premise;
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It is an IRS requirement;
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Not applicable.
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20.
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A CPA must approach all audit work with: 14
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The AICPA behind them by following the AICPA Code of Professional Conduct;
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Conservatism;
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Professional skepticism;
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Ethics.
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