American Institute of Certified Public Accountants (AICPA) Practice Exam

True or False: The AICPA's Code of Professional Conduct includes principles, rules, interpretations, and rulings.

1. True

2. False

3. Only principles and rules

4. Only definitions and interpretations

The correct answer is: True

The AICPA's Code of Professional Conduct indeed comprises principles, rules, interpretations, and rulings. This comprehensive framework is designed to guide CPAs in their ethical and professional responsibilities. The principles reflect the core values of the profession, such as integrity and objectivity, while the rules set forth specific guidelines that must be followed by members. Interpretations and rulings provide clarification and further guidance on how these principles and rules should be applied in various situations, ensuring that CPAs have the resources they need to uphold professional standards. Understanding that the Code includes all these components reinforces the importance of adhering to not only the established rules but also adhering to the underlying principles that guide ethical decision-making in accounting.