1. A CPA in public practice may NOT disclose confidential client information regarding audit services without the client’s consent in response to which of the following situations (Bisk 32-39):
A court-ordered subpoena or summons
A review of the CPA’s professional practice by a state CPA society
An inquiry from the professional ethics division of the AICPA
A letter to the client from the IRS
2. People develop a positive reputation with their peers by all of the following except:
Telling the truth
Keeping commitments
Being expert in your profession
Hoarding money
3. Prudence includes:
Cutting corners where necessary to meet budgets
Stabbing competitors in the back
Helping others by giving away money
Carefully planning for the future
4. The “invisible hand” uses the prudent efforts of market participants to:
Make a few people wealthy
Produce unwanted goods and services
Better the economic condition of society as a whole
Drive up prices
5. Prudence is the virtue that:
Focuses on benefitting other people
Focuses on the security, reputation, comfort and happiness of the individual
Focuses on refraining from harming others
6. Prudence may be describes as:
A popular virtue
A superfluous virtue
A commercial virtue
A glamorous virtue
7. Virtues are:
Characteristics which are worthy of admiration
Characteristics which are guaranteed to bring financial success
Habits which we develop from memorizing the rules of morality
Characteristics of Hollywood stars
8. The primary virtues identified by Adam Smith in “Theory of Moral Sentiments” are:
Prudence, Justice, Sympathy, Courage
Prudence, Wisdom, Courage, Self-Command
Prudence, Justice, Benevolence, Self-Command
Justice, Sympathy, Self-Command, Intelligence
9. “Due Care” means:
Doing whatever it takes to keep the client happy
Being ambitious
Always staying within budget
Being competent and diligent, doing the job right
10. The education of an accountant includes:
On-the-job-training
Continuing professional education
150 hours of college credit hours
All of the above