ExpertEasy1 markMultiple Choice
CPA · Question 11 · Area 1: Ethics
According to the AICPA Code of Professional Conduct, which of the following actions by a CPA would be considered a violation of the 'Integrity and Objectivity' rule?
According to the AICPA Code of Professional Conduct, which of the following actions by a CPA would be considered a violation of the 'Integrity and Objectivity' rule?
Answer options:
A.
Accepting a commission for referring a product to a non-audit client, with full disclosure.
B.
Knowingly making a materially false and misleading entry in a client's financial records.
C.
Serving as a trustee for an estate that owns immaterial stock in a bank audit client.
D.
Differing in opinion with a supervisor regarding an accounting issue.
How to approach this question
Look for the option that implies dishonesty or misrepresentation of facts.
Full Answer
B.Knowingly making a materially false and misleading entry in a client's financial records.✓ Correct
The Integrity and Objectivity rule prohibits a member from knowingly misrepresenting facts or subordinating their judgment to others. Making a false entry is a clear violation.
Common mistakes
Confusing independence rules (trustee) with integrity rules.
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