Question

Which condition would trigger a CPA to infer that the subordination of judgment to a superior has become unacceptable?

a) If the client insists on it
b) If the CPA is inexperienced
c) If it violates the AICPA Code of Professional Conduct
d) If the judgment is consistent with industry standards

Answer 1

The correct answer is c) If it violates the AICPA Code of Professional Conduct. CPAs are required to adhere to ethical standards that prioritize independence and objectivity.

Step-by-step explanation:

The correct answer is c) If it violates the AICPA Code of Professional Conduct.

CPAs, or Certified Public Accountants, are required to adhere to the AICPA Code of Professional Conduct, which sets forth the ethical standards for the profession. This code emphasizes the importance of independence and objectivity in the practice of accounting. Subordination of judgment to a superior would violate this code because it compromises the integrity and professionalism of the CPA's work.

If a CPA were to subordinate their judgment to a superior against their professional code of conduct, it would be unacceptable and could have serious consequences for the CPA's reputation and career.