Which of the following scenarios BEST illustrates a violation of the 'Integrity and Objectivity' rule of the AICPA Code of Professional Conduct?

Answer options:

A member in public practice advocates for a client's position on a tax matter with the IRS.

A member in business knowingly signs a materially false tax return for their employer.

A member refers a client to a service provider and receives a commission, which is fully disclosed to the client.

A member serves as a trustee for a charitable organization that is not an audit client.

How to approach this question

Integrity means being honest. Objectivity means being unbiased. Lying (signing false return) breaks Integrity.

Full Answer

B.A member in business knowingly signs a materially false tax return for their employer.✓ Correct

The Integrity and Objectivity rule prohibits members from knowingly misrepresenting facts or subordinating their judgment to others. Signing a materially false return is a clear violation.

Common mistakes

Confusing advocacy (allowed in tax) with lack of integrity.

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