Question

Which statement best describes the AICPA ethics rules relating to a member's failure to file his or her personal tax return in a timely manner?

1. The member is strongly encouraged to file his or her personal tax returns in a timely manner.
2. The failure to file a personal tax return in a timely manner must be disclosed to all clients and potential clients.
3. The failure to file a personal tax return in a timely manner is usually considered an act discreditable to the profession.
4. The member is not in violation of any ethics rules as long as the failure to file a personal tax return in a timely manner was due to a heavy workload.

Which statement best describes the AICPA ethics rules relating to advertising?

1. Advertising using banner ads over the Internet is considered over-reaching and is prohibited.
2. Mass e-mail advertising is not allowed because it is considered a form of harassment.
3. Advertising is permitted as long as it is not false or misleading.
4. Advertising over any form of mass media is prohibited.

Answer 1

1) Ans: (C) The failure to file a personal tax return in a timely manner is usually considered an act discreditable to the profession.

Explanation:

1) As per Rule 501,there are 8 interpretations which defines the acts that would be considered to be discreditable.

2) out of those 8 interpretation one is regarding late tax filing.If a person fails to file a tax return or remit tax withholding of employees on time it is an act of discrfitable to the profession.

3) Therfore ( C) is the correct choice.

2) Ans: ( C) Advertising is permitted as long as it is not false or

misleading.

( As per AICPA ethics, advertising should be real and not just false promises.option'(c) states the same hence it is the only correct choice.