American Institute of Certified Public Accountants (AICPA) Practice Exam

How are the AICPA Code’s rules enforced among members?

1. Through peer review only

2. By federal regulations

3. By corporate audits

4. Through the AICPA's enforcement actions

The correct answer is: Through the AICPA's enforcement actions

The enforcement of the AICPA Code of Professional Conduct among its members is primarily carried out through the AICPA's enforcement actions. This process involves various mechanisms such as investigating alleged violations, administering disciplinary procedures, and imposing sanctions for non-compliance with the established code. The AICPA has a dedicated team responsible for overseeing ethical standards and maintaining accountability among its members, ensuring that they adhere to the principles outlined in the code. Other options, such as peer review and federal regulations, may contribute to the overall oversight of public accounting practices but do not specifically address how the AICPA itself directly enforces its own rules. Peer review focuses more on the quality of accounting services and compliance with professional standards rather than enforcement of the AICPA Code. Similarly, while federal regulations may influence accounting practices, they do not replace the AICPA's own enforcement mechanisms. Corporate audits are also unrelated to the enforcement of the AICPA Code, as they pertain to evaluating the financial statements and practices of a business rather than the conduct of individual accountants or firms in alignment with the AICPA's ethical standards.