Question

Under the AICPA revised code if an interpretation does not exist related to a specific relationship or circumstance, the CPA should evaluate ___ and ___ a) Ethical considerations; personal values.

b) Peer opinions; organizational guidelines.
c) Regulatory requirements; firm policies.
d) Applicable laws; professional standards.

Answer 1

The correct answer is c) Regulatory requirements; firm policies. CPAs should evaluate regulatory requirements and firm policies when no interpretation exists related to a specific relationship or circumstance. Therefore, the correct option is C.

Step-by-step explanation:

The correct answer is c) Regulatory requirements; firm policies.

According to the AICPA (American Institute of Certified Public Accountants) revised code, if there is no interpretation available for a specific relationship or circumstance, CPAs (Certified Public Accountants) should evaluate regulatory requirements and firm policies. These factors help determine the appropriate ethical course of action in the absence of a specific interpretation.

For example, if a CPA encounters a situation where there is no specific guidance on how to handle a conflict of interest, they would consider the relevant laws and professional standards as well as the policies and guidelines of their firm to make an ethical decision.