1) Which of the following would be considered a self-interest threat? a) A member of the assurance team has a close family member who is a director or officer of the assurance client.
b) When a member of the assurance team was previously a director or officer of the assurance client.
c) Acting as the client’s advocate in a legal proceeding.
d) Potential employment with an assurance client.
2) Part 2 of the AICPA Code of Professional Conduct applies to members in business. These are CPAs who work (either through employment, on a contractual basis, or as a volunteer) in areas such as industry, the public sector, education, the not-for-profit sector, or for regulatory or professional bodies. Which of the following statements is true.
a) While working as a member in business, a CPA is not subject to the rules found in Part 1 of the AICPA Code of Professional Conduct.
b) The AICPA can revoke a member's CPA license for failing to follow the Code of Professional Conduct.
c) Individual state CPA societies and state boards of accountancy are not permitted to incorporate the AICPA Code of Professional Conduct, either in part or in whole, into their own rules of conduct, but must generate their own codes of conduct.
d) All AICPA members, regardless of whether they practice public accounting or are in business and industry, are subject to the AICPA’s Code of Professional Conduct.