Code of Ethics for Professional Accountants

In order to achieve the objectives of the accountancy profession, professional accountants have to observe a number of prerequisites or fundamental principles. The fundamental principles include the following except

• Independence

• Professional behavior

• Confidentiality

• Objectivity

There are fundamental principles that the professional accountants has to observe when performing assurance engagements. The requirement of which principle is of particular importance in an assurance engagement in ensuring that the conclusion of the professional accountant has value to the intended user?

• Objectivity

• Confidentiality

• Integrity

• Professional competence

Occurs when a professional accountant promotes a position or opinion to the point that subsequent objectivity may be compromised

• Advocacy threat

• Self-interest threat

• Self-review threat

• Familiarity threat

Occurs when, by virtue of a close relationship, a professional accountant becomes too sympathetic to the client’s interests.

• Self-interest threat

• Self-review threat

• Advocacy threat

• Familiarity threat

A CPA shall not disclose confidential information obtained during an audit engagement in which one of the following situations?

• When the security of the State so requires

• With the consent of the client

• In defense of himself when sued by the client

• Under the rule against disclosing information

Occurs as a result of the financial and other interests of a professional accountant or of an immediate or close family member

• Self-interest threat

• Advocacy threat

• Self-review threat

• Familiarity threat

Occurs when a professional judgment needs to be re-evaluated by the professional accountant responsible for that judgment

• Self-interest threat

• Advocacy threat

• Self-review threat

• Familiarity threat

In their fiduciary role, the professional accountant owe their primary loyalty to:

• The accounting profession

• The general public

• The client

• Government regulatory agencies

Which of the following is a distinguishing mark of the accountancy profession?

• A drive to excellence

• Acceptance of the responsibility to act in the public interest

• Professional objectivity

• Professional skepticism

A professional accountant should comply with relevant laws and regulations and should avoid any action that discredits the profession. This is a fundamental principle of:

• Objectivity

• Professional competence and due care

• Professional behavior

• Integrity