Exam (elaborations)
THE FUNDEMANTAL PRINCIPLES OF PROFESSIONAL ETHICS QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
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THE FUNDEMANTAL PRINCIPLES OF PROFESSIONAL ETHICS QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
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THE FUNDEMANTAL PRINCIPLES OFPROFESSIONAL ETHICS QUESTIONS
AND ANSWERS WITH SOLUTIONS 2024
The obligation that all members of the profession comply with rules and regulations and ensure that
they maintain the reputation of the profession and its ability to serve the public interest is known as -
ANSWER professional behavior
If a public accountant becomes aware that another designated accountant has breached the rules of
professional conduct, the public accountant must contact the relevant institute to inform them of the
breach (before or after) contacting the other accountant. - ANSWER after
Which fundamental ethical principle requires professional accountants to comply with ongoing
professional development (education)?
A:
professional competence
B:
integrity and due care
C:
objectivity
D:
professional behaviour - ANSWER a
Professional accountants are allowed to use information they have obtained as a result of their
employment to their advantage.
A:
True
B:
False - ANSWER false
Which of the following is true regarding contact with the predecessor auditor?
,A:
The predecessor auditor will always give all the information to the new auditor.
B:
The predecessor is contacted during the audit engagement.
C:
The predecessor is asked if there is a reason the engagement should not be accepted.
D:
The predecessor is not required to talk to the new auditor. - ANSWER c
Which of the following would NOT violate the rules of professional conduct?
A:
naming the firm "Quality First Accounting"
B:
charging contingency fees for the preparation of tax returns
C:
contacting the predecessor auditor
D:
advertise as the "best accounting firm" - ANSWER c
Q 2.8:
Which of the following describes the fundamental ethical principle of integrity and due care? Select all
that apply.
A:
Members should be unbiased and not allow a conflict of interest or the influence of others to impair
their decision process.
B:
Members must keep up to date with changes in regulations and standards.
C:
Members must act diligently and comply with technical and professional standards.
D:
,Members should not be associated with information that is materially false or misleading.
E:
Members must take care to complete each task thoroughly, document all work, and finish on a timely
basis. - ANSWER e-c-d
Which of the following are rules that incorporate the principles of professional ethics? Select all that
apply.
A:
Fee quotes are only provided to a client if there is adequate knowledge of the work to be performed.
B:
Firm names can claim superiority over other professional accounting firms.
C:
Advertising must be in good taste.
D:
The new auditor is required to contact their lawyer before accepting an engagement.
E:
Contingency fees are permitted for the preparation of tax returns. - ANSWER a-c
Which of the following describes the fundamental ethical principle of professional behaviour? Select all
that apply.
A:
Members maintain the reputation of the profession.
B:
Members should be unbiased and not allow a conflict of interest or the influence of others to impair
their decision process.
C:
Members must take care to complete each task thoroughly, document all work, and finish on a timely
basis.
D:
Members must maintain their ability to serve the public interest.
E:
, Members must comply with accounting and auditing rules and regulations. - ANSWER a d e
Which of the following would be an appropriate professional accounting firm name?
A:
Quality First Accountants
B:
Wilson and Young Accountants
C:
Best and Brightest Accountants
D:
Customers First Accountants - ANSWER b
When professional accountants attain a level of competence and keep up to date with changes in
regulations and standards, what ethical principle are they adhering to?
A:
professional competence
B:
objectivity
C:
professional behaviour
D:
confidentiality - ANSWER a
Which of the following is NOT true about fees a professional accountant can charge?
A:
Fees cannot be significantly lower than the fees charged by the predecessor firm.
B:
Contingency fees can be charged for the preparation of income tax returns.
C:
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