The Importance of Accouting Ethics

Front

How much did Bernie Madoff defraud investors in 2008?

Back

$65 billion

Front

What is the most serious penalty for financial fraud?

Back

Legal and regulatory penalties

Front

What was the primary cause of the Lehman Brothers bankruptcy in 2008?

Back

Risky investments in mortgage-backed securities that led to massive losses

Front

What is the primary role of ethics in accounting?

Back

To maintain transparency, accuracy, and fairness in financial reporting

Front

What should accountants do to maintain professional competence?

Back

Constantly improve their skills through training and courses

Front

What is the consequence of intentionally omitting transactions from accounting records?

Back

It can hide the company's true financial status or achieve tax benefits

Front

What was the main purpose of regulations such as the Sarbanes-Oxley Act?

Back

Ensuring greater transparency and accountability in financial reporting

Front

What does the preservation of professional secrecy mean in accounting?

Back

Respecting the confidentiality of non-disclosed inside information

Front

What does "improper activation of costs" mean in accounting?

Back

Incorrectly classifying costs as assets, which may lead to an overstatement of the balance sheet value.

Front

Which of the following is NOT a key ethical principle in accounting? Responsibility for the information presented, Professional competence, Professional independence, Concealing financial losses

Back

Concealing financial losses