Ethics, Responsibilities

Question 1

A CPA’s actions, behaviors are bound by _________________________?

Answer 1

AICPA’s Code of Professional Conduct

Question 2

What principles must a CPA adhere to in the AICPA’s Professional Code of Conduct?

Answer 2

Exercise Professional and Moral judgement.

Maintain Objectivity and Independence

Exercise Due Care

Operate within scope and nature of services

Maintain client confidentiality

Question 3

What is a registration statement?

Answer 3

It is a statement filed with the SEC during an IPO.

It must be consistent with the audited financial statements.

Question 4

If a registration statement is materially misstated, the CPA is liable to a purchaser of the securities under what legal authority?

What is the statute of limitations?

Answer 4

Securities Act of 1933

1 year from date of discovery and 3 years from the initial offering date.