Accounting Ethics-12-4-2023

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

Multiple Choice

Is the act of reporting unethical or illegal actions by one’s superiors or peers to authorities or to the media.  They can sometimes be viewed as traitors by their employers and co-workers.

• Referee

• Stakeholder

• Accountant

• Whistleblower

Multiple Choice

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

• Ethics

• The law

• Code of Conduct

• Integrity

Multiple Choice

A set of guidelines for maintaining ethics in the workplace. 

• Code of Ethics
• Code of Conduct
• Integrity
• Code of Honor

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

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

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

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

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

Does everyone have the same ethical standards?

• Yes

• No

• Maybe

Multiple Choice

What would be considered an ethical dilemma?

• Stealing a purple pen because you like the color

• Showing up late to class 4 times a week because you sleep in

• A baby is starving and needs food asap. You have no $$, you take a jar of baby food without paying

• Rock all night and party every day

Multiple Choice

Federal law created to set new requirements for all US public company boards, public accounting firms and company management; enforced auditor rotation and mandated executive acknowledgement of published financial reports is _____________________________.

• SECURITIES AND EXCHANGE COMMISSION (SEC)

• SARBANES-OXLEY ACT OF 2002

• BERNIE MADOFF

• FINANCIAL ACCOUNTING STANDARDS BOARD (FASB)

Multiple Choice

____________________ was created by Congress in 1934 to protect investors and provide rules for public corporations listed for trade on stock exchanges.

• ACCOUNTING ETHICS

• TYCO INTERNATIONAL

• SECURITIES AND EXCHANGE COMMISSION (SEC)

• BERNIE MADOFF

Multiple Choice

A private-sector organization, not under direct government control which helps improve accounting standards is the ______________________________________.

• ENRON

• FINANCIAL ACCOUNTING STANDARDS BOARD (FASB)

• BERNIE MADOFF

• AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (AICPA)

Multiple Choice

A national professional organization which helps develop and administer CPA exams and promote ethical practices in the accounting profession is the ____________________.

• ACCOUNTING ETHICS

• ARTHUR ANDERSEN

• AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (AICPA)

• FINANCIAL ACCOUNTING STANDARDS BOARD (FASB)

Multiple Choice

Caleb is currently employed as a graphic designer. Another company has approached him with a freelancing opportunity. Caleb should do all of the following EXCEPT-

• Ensure his employer allows its workers to freelance with other companies.

• Complete his freelance assignments when he is not on his company's premises.

• Ask to be paid in cash so he can avoid paying taxes on his freelance work.

• Use his personal computer and telephone to complete the freelance work.

Multiple Choice

Chad is part of a team that will decide on a new accounting firm for the company. The accounting firms send holiday gifts to Chad. What should he do?

• Accept all of the gifts.

• Return all of the gifts to the firms.

• Throw all of the gifts in the trash.

• Return the expensive gifts only.

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