The AICPA Code of Professional Conduct

question 35

Multiple Choice

The AICPA Code of Professional Conduct:

• A) Makes whistleblowing concerning perceived illegal acts mandatory only if the amounts involved are material to a company
• B) Makes whistleblowing concerning perceived illegal acts mandatory only if the whistleblower is both a CPA and a company employee
• C) Does not make whistleblowing mandatory by CPAs working in industry, but the Integrity and Objectivity Rule expressly encourages it
• D) Tends to discourage it due to the duty of confidentiality

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Definitions:

Finished Goods Inventory

The total value of all completed products that have not yet been sold by a company.

Cash Collections

The process of gathering all cash receipts from sales or other sources during a particular period.

Merchandise Purchases Budget

A financial plan that estimates the cost of goods a company needs to purchase to meet its sales goals.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period of time, primarily used to assess whether a company has sufficient cash to fulfill its operations and financial commitments.