American Institute of Certified Public Accountants (AICPA) Practice Exam

The statement that all CPAs must observe the AICPA Rules of Professional Conduct is accurate because these rules are established to ensure that CPAs maintain a high standard of integrity, objectivity, and professionalism in their practice. The AICPA, as the leading organization for the accounting profession in the United States, has set these rules to provide guidance on ethical behavior and to protect the interests of the public. Compliance with these rules is a fundamental responsibility of all CPAs, regardless of their area of specialization or employment setting.

By requiring adherence to these guidelines, the AICPA aims to foster trust in the accounting profession, ensuring that CPAs act in a way that upholds the public’s confidence and the profession's reputation. This universal applicability underscores the importance of ethical standards in maintaining the integrity of financial reporting and auditing practices.