CPA Professional Responsibilities
Practice Exam
Course Introduction
This course explores the ethical, legal, and regulatory responsibilities of Chartered Professional Accountants (CPAs) in practice and business. Students will examine the CPA Code of Professional Conduct, frameworks for ethical decision-making, and the role of professional judgment in complex situations. Topics include fiduciary duties, independence, confidentiality, integrity, and public interest obligations. The course also addresses contemporary challenges such as fraud prevention, whistleblowing, and the accountants responsibilities in relation to financial reporting and assurance. Through real-world case studies and scenario analysis, students will develop skills for navigating ethical dilemmas and upholding professional standards in a dynamic business environment.
Recommended Textbook
Ethical Obligations and Decision Making in Accounting Text and Cases 4th Edition by
Available Study Resources on Quizplus
8 Chapters
624 Verified Questions
624 Flashcards
Source URL: https://quizplus.com/study-set/2603
Page 2
Steven Mintz
Chapter 1: Ethical Reasoning: Implications for Accounting
Available Study Resources on Quizplus for this Chatper
88 Verified Questions
88 Flashcards
Source URL: https://quizplus.com/quiz/51867
Sample Questions
Q1) Michael Josephson,founder of the Josephson Institute of Ethics,is credited for developing:
A)Book of virtues
B)Care and response orientation
C)Six Pillars of Character
D)Rights theory
Answer: C
Q2) Hofstede's Cultural Dimensions helps explain how workers from different cultures might react in the workplace.The Long-Term Orientation dimension could help explain the different approaches toward:
A)Dealing with uncertainty
B)Dealing with differences in power structure
C)Emphasizing short-term and long-term results
D)Emphasizing results over process
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Cognitive Processes and Ethical Decision
Making in Accounting
Available Study Resources on Quizplus for this Chatper
65 Verified Questions
65 Flashcards
Source URL: https://quizplus.com/quiz/51866
Sample Questions
Q1) Which of the following statements best describes System 2 thinking?
A)System 2 operates automatically and quickly,with little or no effort and no sense of voluntary control
B)System 2 allocates attention to the effortful mental activities that demand it,including complex computations
C)An example System 2 thinking is detecting that one object is more distant than another
D)An example of System 2 thinking is effortlessly originating impressions and feelings about an event
Answer: B
Q2) James Rest's model of ethical action involves four components inherent to the ethical decision-making process.Which of the following relates to a person's moral judgment?
A)Interpreting a situation as a moral dilemma
B)Willingness to place ethical values ahead of non-ethical values
C)Intention to act ethically aligning to his values
D)Outcome of one's prescriptive reasoning
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Organizational Ethics and Corporate Governance
Available Study Resources on Quizplus for this Chatper
86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/51865
Sample Questions
Q1) The 2010 Dodd-Frank Act includes additional incentives for whistleblowers.What is the act's effect on whistleblowing by accountants?
A)No accountant,internal or external,whether by job title or certification may receive a reward.
B)All accountants who whistle-blow are protected against retaliation,but may not receive a reward.
C)Internal auditors who whistle-blow may not receive a reward.
D)A CPA may report a violation of a public accounting firm's performance in an audit.
Answer: D
Q2) Strong corporate governance relies on a strong board of directors.Which of the following would be a strong candidate to be a board director for XYZ,Inc.?
A)Community member who has already served on the board for 15 years.
B)Investor who has a multi-million-dollar joint venture with the CEO and CFO.
C)Retired controller of a Fortune 500 company.
D)Community member who receives annual large consulting contracts from XYZ.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Ethics and Professional Judgment in Accounting
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/51864
Sample Questions
Q1) An example of a management participation threat is:
A)Establishing and maintaining the budget for audit completion
B)Establishing and maintaining internal controls for the client
C)Initiating litigation against the client
D)Preparing source documents used to generate the client's financial statements
Q2) Professional skepticism can best be defined as having:
A)An inquiring mind and deliberate decision making
B)Deliberate decision making and suspension of belief
C)An inquiring mind and suspension of belief
D)Careful observation and virtue-based decision making
Q3) The Family Games case deals with the following accounting issue:
A)Whether an audit firm should inform one audit client about fraudulent financial statements of another client
B)Whether certain expenditures should be capitalized rather than expensed
C)Whether revenue should be accelerated into an earlier period
D)Whether depreciation should be reduced by 20 percent to increase earnings
Q4) Explain how CPAs should evaluate risks to integrity and objectivity when considering providing gifts to audit clients and/or client management or accepting risks from them.
Q5) Describe the basic features of the Revised AICPA Code of Professional Conduct.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Fraud in Financial Statements and Auditor
Responsibilities
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/51863
Sample Questions
Q1) Under which of the following set of circumstances might the auditors disclaim an opinion?
A)The financial statements contain a departure from generally accepted accounting principles,the effect of which is material
B)The auditor is unable to obtain sufficient appropriate audit evidence on which to base the opinion
C)There has been a material change between periods in the method of the application of accounting principles
D)Differences with management that lead to trust issues on the part of the auditor
Q2) Section 302 of the Sarbanes-Oxley Act requires:
A)Management's report on internal controls
B)Auditor's independent report
C)Auditor's assessment of management's report on internal controls
D)Management's certification of the financial statements
Q3) What is the purpose of having required auditor communications between the external auditor and the audit committee?
Q4) Explain the link between the opportunity to commit fraud and corporate governance systems.
7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Legal, Regulatory, and Professional Obligations of Auditors
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/51862
Sample Questions
Q1) In Grant Thornton v.Prospect High Income Fund,the Texas Supreme Court held:
A)Auditors were not liable for accurate accounting to anyone who reads and relies upon the audit report
B)Auditors were not liable for ordinary negligence
C)Auditors are not guarantors of accurate and reliable financial statements
D)Management is responsible for the financial statements
Q2) The name of the international securities body that facilitates a country's choice to regulate the use and application of IFRS is:
A)International Accounting Standards Board
B)International Federation of Accountants
C)International Organization of Securities Commissions
D)International Securities and Exchange Commission
Q3) What argument can be made that SOX may not be effective in reducing fraud?
A)It is not as stringent as international standards
B)The SEC has many laws for many years that have not seemed to make much of a difference
C)The penalties under Sarbanes-Oxley are especially stringent,so it may not be enforced
D)Civil and criminal penalties are not effective in preventing financial fraud
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Earnings Management
Available Study Resources on Quizplus for this Chatper
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/51861
Sample Questions
Q1) A common method used to smooth net income over time is:
A)Accelerate revenue into earlier periods
B)Delay expenses into later periods
C)Using accrual of operating expenses and future adjustments
D)Using nonrecurring items to increase earnings in one year and reduce it later on
Q2) All of the following are examples of "Recording revenue too soon or of questionable quality" except:
A)Recording sales that lack economic substance
B)Recording revenue when future services remain to be provided
C)Recording revenue before shipment or before the customer's unconditional acceptance
D)Recording revenue even though the customer is not obligated to pay
Q3) Motivations to smooth net income over time include each of the following except:
A)Maximize bonuses and stock option values
B)Steady increase in earnings each year
C)Minimize overall taxes
D)Make it appear managers are doing better than they really are
Q4) Categorize the financial shenanigans in the fraud cases at Gemstar-TV Guide and Lucent.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Ethical Leadership and Decision-Making in Accounting
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/51860
Sample Questions
Q1) Price believes that ethical failures in leaders are:
A)Typically,volitional rather than cognitive
B)Typically,cognitive rather than volitional
C)Caused by deficiencies in internal controls
D)Caused by considering the interests of parties outside their group of followers
Q2) Servant leaders:
A)Advocate a perspective that leaders have a responsibility to serve their followers by helping them to achieve followers' goals
B)Servant leadership is the flip side of authentic leadership
C)Promote a culture that enhances organizational outcomes
D)Help followers to fulfill their needs by modeling ethical values,attitudes and behaviors
Q3) To be an ethical leader,executives must also:
A)Attend to cultivating ethics and be an ethical person
B)Attend to client's interest and be a moral person
C)Serve in followership roles
D)Serve as servant leaders
Q4) Character and leadership go hand in hand.Explain the elements of character-based leadership.
Page 10
To view all questions and flashcards with answers, click on the resource link above.