Question

Which statement best describes the AICPA ethics rules relating to advertising?
A. Advertising using banner ads over the Internet is considered over-reaching and is prohibited.
B. Mass e-mail advertising is not allowed because it is considered a form of harassment.
C. Advertising is permitted as long as it is not false or misleading.
D. Advertising over any form of mass media is prohibited.

Answer 1

Answer:

The correct answer is letter "C": Advertising is permitted as long as it is not false or misleading.

Explanation:

The American Institute of Certified Public Accountants (AICPA) according to its Code of Professional Ethics restricted any form of advertising coming from its members. In 1997, the Supreme Court of the U.S. pressured the institution on this matter at the point of forcing AICPA to create an amendment (1978) in order to allow advertising as long as it is not false, misleading or deceptive.