Question : 10.2   Multiple-Choice Questions 1) Which of the following statements best differentiates : 1222540

 

10.2   Multiple-Choice Questions

1) Which of the following statements best differentiates a profession and a professional?

A) A profession is an occupation that requires advanced education and training and a professional is a person who oversees the behavioral actions of those who practice a profession.

B) A profession is a value-based internal force for behavioral action and a professional is a person who oversees the behavioral actions of those who practice a profession.

C) A profession is an occupation that requires advanced education and training and a professional is a person who practices a profession.

D) A profession is an occupation that requires advanced education and training and a professional is a value-based internal force for behavioral action.

2) Which of the following statements is true of characteristics of a profession?

A) It enjoys a high level of public trust and confidence even though it is never legalized by a regulatory body.

B) It is organized into associations and there are specific requirements for admission into such associations and maintenance of membership.

C) There are published authoritative performance and ethical standards for a profession even though it is never legalized by a regulatory body.

D) Violations of a profession’s performance and ethical standards would always result in expulsion from membership.

3) Which of the following is an obligation that relates to professional responsibility?

A) to ensure all financial processes of the organization are insulated from fraudulent activities

B) to always do exactly what a client wants no matter what the circumstances

C) cooperate with other professional members to improve the art of accounting, maintain the public’s confidence

D) to employ the degree of knowledge, skill, and judgment ordinarily possessed by members of the profession

4) Paul Lewis, forensic accountant, has been engaged by a claimant, Ovizone Company to access the financial loss suffered due to acquisition of Skinet Corp and testify it in the form of a report. Ovizone claims that the acquisition occurred only because of the negligent business valuation made by Trufinance Company. Halfway through the engagement, Lewis realized that Ovizone suffered loss due to Trufinance’s negligence in valuation. But, Lewis had very limited technical knowledge in business valuation. Which of the following AICPA Rules of Professional Conduct should Lewis focus on while rendering his testifying report?

A) Integrity and objectivity – Rule 102

B) Independence – Rule 101

C) General Standards – Rule 201

D) The public trust – Rule 203

5) The purpose of the AICPA’s Code of Professional Conduct is to

A) induce the accountants through guidance, rules, interpretations, and rulings to join the AICPA.

B) help AICPA members monitor their own behavior.

C) employ the degree of knowledge, skill, and judgment possessed by a rational individual.

D) fulfil all the client requirements included in the engagement agreement.

6) Which of the following is a principle of AICPA’s Code of Professional Conduct?

A) be in compliance with professional standards of all professional bodies

B) adequately plan and supervise all professional services

C) cooperate with other professional members to improve the art of accounting and to maintain the public’s confidence

D) obtain sufficient and relevant data to afford a reasonable basis for conclusions or recommendations in relation to any professional services performed

7) Which of the following statements is true of AICPA’s Code of Professional Conduct?

A) Although AICPA membership is voluntary, membership mandates compliance with the Code of Professional Conduct.

B) The purpose of the Code is to induce the accountants through guidance, rules, interpretations, and rulings to join the AICPA.

C) The code helps members monitor their own behavior but it does not provide a framework for resolving disputes.

D) The Code has two sections: principles and rationales.

8) Which of the following statements best differentiates a principle and a rule as per AICPA’s Code of Professional Conduct?

A) A principle is an external person who oversees the behavioral actions of those who practice a profession, while a rule is a value-based internal force for behavioral action.

B) A principle is an external person who oversees the behavioral actions of those who practice a profession, while a rule is an authoritative regulatory force for behavioral action.

C) A principle is a value-based internal force for behavioral action and a rule is an authoritative regulatory force for behavioral action.

D) A principle is regulatory force with advanced education and training and a rule is a value-based internal force for behavioral action.

9) Which of the following is the AICPA’s Code of Professional Conduct principle that requires a member to observe the principles of objectivity, independence, and due care?

A) general standards

B) integrity

C) accounting principles

D) due professional care

10) Which of the following statements best defines the principle of independence as per AICPA’s Code of Professional Conduct, ET Sec. 55, Article IV?

A) It requires a member to discharge professional responsibilities with competence and diligence.

B) It imposes the responsibility to render services promptly and carefully, to be thorough, and to observe applicable technical and ethical standards.

C) It precludes relationships that may appear to impair a member’s objectivity in rendering various professional services.

D) It induces members to disclose any confidential client information without the specific consent of the client.

 

 

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