CPA Exam

The CPA Exam is a comprehensive assessment designed to evaluate the knowledge and skills necessary for a career in accounting.

Structure and Format of the CPA ExamCore Accounting PrinciplesEthics and Professional Responsibility
Auditing Procedures and Risk AssessmentAdvanced Financial ReportingFederal Taxation and Business Law
Applying Accounting Concepts in PracticeTax Planning and ComplianceEthical Decision-Making in Accounting
Effective Study PlanningMastering Multiple-Choice and SimulationsTest Day Preparation and Mindset
Structure and Format...Core Accounting Prin...Ethics and Professio...Auditing Procedures ...Advanced Financial R...Federal Taxation and...Applying Accounting ...Tax Planning and Com...Ethical Decision-Mak...Effective Study Plan...Mastering Multiple-C...Test Day Preparation...
Basic Concepts

Ethics and Professional Responsibility

Ethical Standards for CPAs

Ethics are a cornerstone of the accounting profession. CPAs are held to high standards of integrity, objectivity, and independence.

Key Ethical Principles

  • Integrity: Be honest and straightforward in all professional and business relationships.
  • Objectivity: Avoid bias, conflict of interest, or undue influence.
  • Confidentiality: Protect client information and do not disclose without consent.

Role in the CPA Exam

The Audit and Regulation sections feature questions about ethical dilemmas, the AICPA Code of Professional Conduct, and real-life scenarios requiring sound judgment.

Application in Practice

Ethical lapses can lead to reputational damage, legal consequences, and loss of licensure. CPAs must navigate ethical decisions daily, such as reporting irregularities or refusing to manipulate financial data.

Examples

  • A CPA refuses to approve false financial reports, even under pressure from management.

  • An accountant maintains confidentiality about a client's merger plans.

In a Nutshell

Ethics guide CPAs in making honest and fair decisions in their work.

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Auditing Procedures and Risk Assessment