American Institute of Certified Public Accountants (AICPA) Practice Exam

According to the AICPA Code of Conduct, which professional services require compliance with SEC standards?

1. Only audit and tax services.

2. Auditing, review, compilation, management consulting, tax, and other services.

3. All services offered by the member.

4. Management consulting services only.

The correct answer is: Auditing, review, compilation, management consulting, tax, and other services.

The correct choice identifies which professional services necessitate compliance with Securities and Exchange Commission (SEC) standards under the AICPA Code of Conduct. Auditing, review, compilation, management consulting, tax, and other services provided by CPAs that involve financial reporting are subject to these standards. This adherence is crucial because firms that provide services to publicly traded companies must align with SEC regulations to ensure transparency, reliability, and integrity in financial statements. The necessity for various services to comply with SEC standards reflects the importance of maintaining a high level of accountability and ethical behavior. Auditing services are particularly governed by strict regulations due to their role in offering assurance to investors and the public regarding the accuracy of financial information. Similarly, reviews and compilations also operate under these standards as they contribute to financial reporting frameworks. While management consulting and tax services can vary in their need for compliance based on the specific circumstances and the nature of the report, any service that interfaces directly with financial reporting for entities subject to SEC oversight must uphold these standards to be in concert with public interest and legal requirements. This comprehensive requirement ensures that all relevant services are delivered with the same level of rigor appropriate for financial professionals serving publicly mandated organizations.