Question

Which rule prohibits a CPA in business from subordinating judgment when performing professional services for their employer?

A) Independence Rule
B) Integrity and Objectivity Rule
C) Professional Competence Rule
D) Confidentiality Rule

Answer 1

The Integrity and Objectivity Rule prohibits CPAs in business from subordinating their judgment when performing professional services. This rule maintains that CPAs must not allow bias or undue influence to compromise their professional judgment, ensuring honest and unbiased financial reporting.

Step-by-step explanation:

The rule that prohibits a CPA in business from subordinating judgment when performing professional services for their employer is the Integrity and Objectivity Rule. This rule is part of the Code of Professional Conduct that members of the American Institute of Certified Public Accountants (AICPA) must follow. It requires that CPAs must not compromise their professional or business judgment because of bias, conflict of interest, or the undue influence of others.