Which of the Following Is Not Defined as an Act

question 28

Multiple Choice

Which of the following is not defined as an act discreditable in either the Rules or the Interpretations of the AICPA's Code of Professional Conduct?

• A) The CPA firm's partner in charge failed to file his tax return for the past year.
• B) The CPA firm discriminates in its hiring practices based on the age of the applicant.
• C) The CPA retains the client's books and records to enforce past-due payment of the CPA's bill, even after the client has demanded they be returned.
• D) The CPA firm's partner-in-charge was a passenger in a car driven by his wife. On the way home from the firm's Christmas party, she was charged with "driving while intoxicated."

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Definitions:

Indemnity

A financial compensation for loss or damage incurred, or a protection against future financial liabilities.

Reimbursement

The act of compensating someone for an expense they have incurred, often related to business costs or healthcare expenses.

Fringe Benefits

These are additional compensations provided to employees beyond their regular salaries, such as health insurance, car allowances, or retirement benefits.

Merit Pay Systems

Incentive programs that reward employees based on their performance and productivity.