The Code of Professional Ethics for CPAs promulgated by the Board applies to

All CPAs in public practice

All CPAs in government
All CPAs in public practice and employed in private business
All CPAs in public practice employed in private business and industry, in the government and in education.

The underlying reason for a code of ethics is

That it provides a safeguards against unscrupulous people
That it is required by legislation
To provide the licensing agencies with a basis for measuring the performance of the practitioners
The need for public confidence in the quality service of the profession

The CPA profession deemed it necessary to establish a code of ethics and a mechanism for its enforcement because
The establishment of flexible ethical standards provides self-protection for CPAs
An ethical conduct that stresses the CPAs responsibility to clients and colleagues is a prerequisite to success
A requirement of law provides that CPAs establishes a code of ethics
Acceptance of responsibility to the public is a distinguishing mark of a profession.

Which of the following is not one of the characteristic of a profession?

A responsibility to protect exclusively the interest of a client or employer.
Mastery of a particular intellectual skill acquired by training and education
Adherence by its members to a common code of conduct
Acceptance of a duty to society as a whole

The principle of professional competence and due care imposes certain obligations on professional accountants,
which of the following is not one of those obligations required by this principle
To obtain professional knowledge and experience to enable them to fulfil their responsibilities
To act diligently in accordance with applicable technical and professional standards
To become aware and understand relevant technical, professional and business developments
To be fair, intellectually honest and free of conflict of interest

The essence of due care principle is that the auditor should not be guilty of
Negligence b. Fraud c. Bias d. Errors in judgment

Competence as a CPAs includes all of the following except,

Consulting others if additional technical information is needed
Having the technical qualifications to perform an engagement
Warranting the infallibility of the work performed
Possessing the ability to supervise and evaluate the quality of staff work

The phase of professional competence that requires a professional accountant to adopt a program designed to endure
quality control in the performance of professional services consistent with technical and professional standards is
Review of professional competence c. Application of professional competence
Attainment of professional competence d. Maintenance of professional competence

Professional competence should include:

Statement 1 – Attainment of professional competence
Statement 2 – Maintenance of professional competence
Both statements are true c. Only Statement 1 is true
Both statements are false d. Only Statement 2 is true

An auditor who accepts an audit engagement and does not possess the industry experience/ expertise of the business
entity should
First inform management that an unqualified opinion cannot be issued
Engage financial experts familiar with the nature of the business entity
Refer a substantial portion of the audit to another CPA who will act as a principal auditor
Obtain knowledge of matters that relate to the nature of the entity’s business