A CPA's Duty to Be Free of Conflicts of Interest

question 18

Multiple Choice

A CPA's duty to be free of conflicts of interest is most closely related to the AICPA Code of Professional Conduct's Principle of:

• A) Due care
• B) Objectivity
• C) Professional skepticism
• D) Nonsubordination of professional judgment

---

Definitions:

Marginal Private Cost

The additional cost incurred by the producer for producing an extra unit of a good, not considering external effects.

Equilibrium

A state where market supply and demand balance each other, and, as a result, prices become stable.

Social Marginal Benefit

The additional benefit to society of consuming or producing one extra unit of a good or service, including both direct and external benefits.

Public Goods

Public goods are products or services that are non-excludable and non-rivalrous, meaning they can be consumed by anyone without reducing their availability to others.