Question

A CPA would violate the AICPA rule on integrity and objectivity if:

a. a CPA in industry knowingly misrepresented the earnings of the company he worked for.
b. a CPA in public practice represented both the buyer and seller in helping the parties negotiate the sale (purchase) of a business.
c. a CPA who was an audit staff member subordinated his or her judgment to that of the audit partner.
d. All of the answers are violations of the AICPA rule on integrity and objectivity.

Answer 1

All scenarios listed violate the AICPA's rule on integrity and objectivity, as they involve misrepresentation, conflict of interest without disclosure, and subordination of professional judgment, all of which compromise ethical standards.

Step-by-step explanation:

A CPA would violate the AICPA rule on integrity and objectivity if: a. a CPA in industry knowingly misrepresented the earnings of the company he worked for, b. a CPA in public practice represented both the buyer and seller in helping the parties negotiate the sale (purchase) of a business, and c. a CPA who was an audit staff member subordinated his or her judgment to that of the audit partner. d. All of the answers are violations of the AICPA rule on integrity and objectivity.

The AICPA's Code of Professional Conduct requires CPAs to maintain integrity and objectivity without subordinating professional judgment to others. Representing conflicting interests without proper disclosure and knowingly misrepresenting facts also breaches this rule. Thus, in all the scenarios provided, unethical actions undermine the trust and standards expected in the accounting profession.