F5 POA - Accounting Ethics

Accounting Ethics

Ethical Principles of Accounting

The moral principles and standards that govern the conduct of those working in the profession.

Accountants have special ethical obligations. They have a responsibility to act in the public interest and comply with certain fundamental principles.

Integrity
Objectivity
Professional competence and due care
Confidentiality
Professional behaviour

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Fundamental Principles

Being straightforward and honest in all professional and business relationships.

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​Integrity

Avoiding bias, conflicts of interest or the undue influence of others when making professional judgments.

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​Objectivity

Keeping knowledge and skills at the appropriate level in order to deliver the services to clients diligently.

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​Professional competence and due care

Avoiding the disclosure of information to others without permission; not using a client's information for personal advantage.

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Confidentiality

Taking personal responsibility for adopting the highest standards of the profession by complying with legal requirements and requirements and avoiding any action that would discredit the profession.

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Professional Behaviour

Multiple Choice

The principles of right or wrong that guide an individual in making decisions

• Ethics

• The law

• Code of Conduct

• Integrity

Multiple Choice

Company property or assets are for business purposes and not for personal use

• TRUE

• FALSE

Multiple Choice

Integrity means

• trying to please the client

• listening to the clients viewpoint

• preparing accounts to the clients specifications

• preparing accounts to show a 'true and fair wiew'

Multiple Choice

Objectivity means

• Being 'whiter than white'

• Being open and transparent

• Investigating figures that appear inconsistent

• Listening to the clients explanations

Multiple Choice

You can disclose client information if

• The client is out of town and won't know

• The client won't know that it is you who has supplied the information

• The client has been polluting rivers with chemical waste because it is a cheap option

• You think the client is an arrogant business woman who deserves to be brought down a peg

Multiple Choice

Fred is leaving the accounting practice to become the Finance Director of a client company. The ethical dilemma he is most likely to face would be

• Confidentiality

• Professional Behaviour

• Professional Competence

• Integrity

• Objectivity

Multiple Choice

Mr. Adams is the accountant at HighFlow Mega Supermarket. He was recently fired and replaced with another employee, Ms. Emily, with no accounting training and experience. Which of the following does Ms. Emily lack?

• Integrity

• Ojectivity

• Confidentiality

• Professional Competnece

Multiple Choice

Stephon works in the accounts department. He was so fascinated with the balance in the bank account that he showed 3 of his friends. Which ethical principle in being breached?

• integrity

• Objectivity

• Confidentiality

• Professional competence

Multiple Choice

Mr. Lyon prepared a cheque for $50,000 and forged signatures on the cheque. Which of the following has Mr. Lyon did not follow?

• Integrity

• Objectivity

• Confidentiality

• Professional competence

Multiple Choice

Accountants must not allow bias, conflict of interest or the undue influence

of others to override their professional and business judgements.

Which ethical principle does this reflect?

• Professional behaviour

• Professional competence and due care

• Confidentiality

• Objectivity

Multiple Choice

Accountants must comply with relevant laws and regulations, and avoid

any action that discredits the profession.

Which ethical principles does this refer to?

• Professional behaviour

• Professional competence and due care

• Confidentiality

• Objectivity

Multiple Choice

Which of the following is not an ethical principle in the code of ethics?

• Objectivity

• Integrity

• Subjectivity

• Professional behaviour

Multiple Choice

Accountants should maintain professional knowledge by being up-to-date with new development to be competent in their job. This is known as____________________.

• Confidentiality

• Professional Competence

• Objectivity

• Professional behavior

Multiple Choice

A professional accountant should not allow any bias or conflict of interest to cloud his professional judgment. This is known as _______________________.

• Confidentiality

• Professional Competence

• Objectivity

• Professional behavior

Multiple Choice

_________________ is very important in a business. Private information should not be share with anyone. This is called_____________.

• Confidentiality

• Professional Competence

• Objectivity

• Professional behavior