FAR — Financial Accounting & Reporting — Quiz 89

Questions in this quiz (10)

1. Which organization issues ethical standards for CPAs in the United States?

   • American Institute of Certified Public Accountants (AICPA)
   • Federal Reserve
   • Internal Revenue Service (IRS)
   • Securities and Exchange Commission (SEC)

2. Which ethical principle requires accountants to remain unbiased and avoid conflicts of interest?

   • Integrity
   • Objectivity
   • Confidentiality
   • Professional competence

3. Which ethical principle requires protecting sensitive client data?

   • Confidentiality
   • Integrity
   • Objectivity
   • Independence

4. Which ethical principle requires maintaining knowledge and skills?

   • Integrity
   • Professional competence
   • Confidentiality
   • Objectivity

5. Which of the following best describes auditor independence?

   • Auditors preparing client financial statements
   • Auditors remaining impartial and unbiased
   • Auditors managing company operations
   • Auditors approving budgets

6. Which situation threatens auditor independence?

   • Reviewing financial statements
   • Having financial interest in the client
   • Performing audit testing
   • Preparing audit reports

7. Which regulatory agency oversees public company reporting in the U. S.?

   • Securities and Exchange Commission (SEC)
   • Internal Revenue Service (IRS)
   • Federal Reserve
   • Department of Commerce

8. Which of the following best describes whistleblowing?

   • Reporting unethical activities within a company
   • Increasing company profits
   • Preparing financial reports
   • Recording transactions

9. Which of the following helps organizations detect fraud?

   • Internal audits
   • Increasing advertising
   • Issuing stock
   • Increasing sales

10. Which of the following best defines financial transparency?

    • Concealing financial data
    • Providing accurate financial information to stakeholders
    • Limiting disclosures
    • Avoiding financial reporting