A Violation of the Profession's Ethical Standards Would Most Likely

question 21

Multiple Choice

A violation of the profession's ethical standards would most likely occur when a CPA who

• A) Is also admitted to the Bar represents on letterhead to be both an attorney and a CPA.
• B) Writes a newsletter on financial management also permits a publishing company to solicit subscriptions by direct mail.
• C) Is controller of a bank permits the bank to use the controller's CPA title in the listing of officers in its publications.
• D) Refused to hire a new employee does so because the CPA deemed the candidate to be "too old."

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, without control or joint control.

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and the potential for dividends.

Fair Value Through Profit or Loss

A financial accounting method where changes in fair value of an asset or liability are reflected in the profit or loss as they occur.

Balance Sheet

A financial statement that shows a company’s assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.