A CPA Observed Another CPA Engaging in an Act That

question 4

Multiple Choice

A CPA observed another CPA engaging in an act that was undeniably discreditable to the profession.The Acts Discreditable Rule of the AICPA:

• A) Requires the observing CPA to report this violation to a designated officer of the AICPA
• B) Requires the observing CPA to report this violation to a designated officer of the applicable state's accountancy licensing board
• C) Expressly states that a CPA has no duty to report the observed misconduct
• D) Does not express an opinion on whether the observing CPA does, or does not, have a reporting duty

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Definitions:

Money Income

The total amount of monetary earnings received by an individual or household, including wages, salaries, benefits, and other income sources.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, reflecting their preferences for combinations of goods.

Utility

A measure of satisfaction or benefit that consumers receive from consuming goods and services.

Equilibrium Position

The state in which market supply and demand balance each other, resulting in stable prices and quantities.