61.

 What concepts does the AICPA Principles of Professional Conduct include? 

A. Public interest, objectivity and independence.
B. Due professional care and supervision.
C. Scope and nature of services and adequate training.
D. Integrity and confidentiality.

62. In which of the following situations would a CPA not be considered independent? 
A. A CPA has obtained an auto loan from a banking client in the current year.
B. A CPA has obtained an automobile lease term from a client in the current year.
C. A CPA has obtained a $4,000 cash advance from a banking client in the current year.
D. A CPA has obtained a home mortgage loan from a client in the current year.

63. In which of the following situations would a CPA not be considered independent? 
A. A CPA has obtained an auto loan from a banking client in a prior year.
B. A CPA has obtained a home mortgage loan in 1988 from a client.
C. A CPA has obtained a $4,500 cash advance from a banking client in the current year.
D. A CPA has obtained a $6,500 cash advance from a client in the current year.

64. Which of the following represents a situation in which auditors may disclose client
information to outside parties? 
A. Bringing working papers to a professional CPA workshop as an example of quality work.
B. Complying with a validly issued and enforceable subpoena or summons.
C. Showing the client’s bank statement to a neighbor who is a shareholder to emphasize its cash
position.
D. Explaining to the local television news station why the client is likely to miss payroll in the
forthcoming periods.

65. Which of following is not part of the ethical framework derived from utilitarianism and rights
theories? 
A. Identification of the legal issues.
B. Determination of affected parties and their rights.
C. Determination of the most important rights.
D. Development of alternative courses of action.

 
66. What is the purpose of an ethical framework? 
A. To provide a defined methodology to solve the ethical problem.
B. To provide a defined methodology to aid the user in making complex ethical decisions.
C. To provide a defined program to solve ethical dilemmas.
D. To provide all of the above.

67. The auditor is normally not permitted to divulge confidential information obtained from a
client. Which of the following situations would be a violation of this standard? 
A. To respond to the information request of a shareholder.
B. To respond to a quality review request of the state board of accountancy.
C. To initiate a complaint with the AICPA’s ethics division.
D. To ensure adequate disclosure in accordance with GAAP.