Client and Vendor Definitions and Rules Quiz
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Questions and Answers

Which accounting firm received the largest fine ever imposed by the SEC for cheating on ethics exams and withholding evidence of misconduct?

  • Ernst & Young (correct)
  • KPMG
  • PWC Canada
  • None of the above

    • How much was KPMG fined for cheating on internal training tests?

  • $100M
  • $50M (correct)
  • $750,000
  • None of the above

    • How many EY employees shared answer keys to the ethics part of the CPA exam according to the investigation?

  • 49 (correct)
  • 200
  • 300,000
  • None of the above

    • Which type of normative ethics is based on family roles and the relationship with community?

    <p>Role ethics</p> Signup and view all the answers

    What is the purpose of applied ethics?

    <p>To determine public policy</p> Signup and view all the answers

    Which sources contribute to the creation of an ethical system?

    <p>Culture and religious beliefs</p> Signup and view all the answers

    What are ethical dilemmas?

    <p>Conflicting ethical requirements</p> Signup and view all the answers

    Which organization formed the first ethical codes in 1905?

    <p>The American Association of Public Accountants (AAPA)</p> Signup and view all the answers

    When did the AAPA create the earliest version of the official code of professional conduct?

    <p>1917</p> Signup and view all the answers

    When did the AICPA Professional Ethics Executive Committee approve the new code of professional conduct?

    <p>January 28, 2014</p> Signup and view all the answers

    Which section of the AICPA Code of Professional Conduct contains rules applicable to all members?

    <p>Preface</p> Signup and view all the answers

    According to the text, what is the definition of ethics?

    <p>The philosophy that looks at the concepts of right and wrong behavior</p> Signup and view all the answers

    According to the text, what is meta-ethics concerned with?

    <p>The theory of understanding right and wrong</p> Signup and view all the answers

    According to the text, what is virtue ethics?

    <p>The belief that ethical behavior is driven by a moral agent</p> Signup and view all the answers

    According to the text, what is consequentialism?

    <p>The consequences of an action are the basis for a valid moral judgement</p> Signup and view all the answers

    According to the text, what is the Trolley Problem?

    <p>A study in ethical dilemmas</p> Signup and view all the answers

    According to the text, what is the basic version of the Trolley Problem?

    <p>A runaway trolley on the railroad tracks with 5 people tied to the tracks</p> Signup and view all the answers

    According to the text, what is the ethical decision in the Trolley Problem?

    <p>Pull the lever to divert the trolley and kill one person</p> Signup and view all the answers

    According to the text, what is the doctrine of double effect in the Trolley Problem?

    <p>One may take an action that has a bad side effect, but intending harm is wrong</p> Signup and view all the answers

    Which of the following is an example of an act discreditable to the profession for members in public practice?

    <p>Solicitation or disclosure of CPA exam Q&amp;As</p> Signup and view all the answers

    According to the text, when is a departure from accounting principles allowed?

    <p>When the departure prevents the statements from being misleading</p> Signup and view all the answers

    What disciplinary action was imposed on a member in 2022, according to the text?

    <p>Suspension for 2 years</p> Signup and view all the answers

    According to the Code Basics, which principle requires maintaining objectivity and independence?

    <p>Objectivity and independence principle</p> Signup and view all the answers

    According to the Code Basics, what is an attest engagement?

    <p>An engagement that requires independence</p> Signup and view all the answers

    According to the Code Basics, who is considered a covered member in an attest engagement?

    <p>Individual in a position to influence the attest engagement</p> Signup and view all the answers

    According to the Code Basics, what particular rules must members in public practice follow in addition to the standards applicable to all members?

    <p>Integrity and Objectivity</p> Signup and view all the answers

    Which one of the following individuals would NOT be considered a client for the purposes of this ruling?

    <p>A vendor</p> Signup and view all the answers

    According to the text, when accepting or offering gifts or entertainment, judgment is required to determine whether it is reasonable under the circumstances. Which one of the following factors is NOT considered when determining reasonableness?

    <p>The relationship between the member and the recipient</p> Signup and view all the answers

    According to the text, when accepting or offering gifts or entertainment, a member would be presumed to lack integrity if they accepted or offered a gift or entertainment that they knew, or was reckless in not knowing, would violate policies or laws and regulations. Which one of the following statements accurately describes this presumption?

    <p>The presumption applies only if the member knew that accepting or offering the gift or entertainment would violate policies or laws and regulations</p> Signup and view all the answers

    According to the text, would independence be impaired if a member or firm offers or accepts gifts or entertainment to or from an attest client?

    <p>Yes, unless the value is clearly insignificant to the recipient</p> Signup and view all the answers

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