Audit 2 Chp5

Which of these is NOT a fundamental ethical principle?

• Integrity

• Independence

• Objectivity

• Professional competence & due care

Which of these statements provides the best explanation of integrity

• Members should act diligently and in accordance with applicable technical and professional standards

• Members should not bring the profession into disrepute

• Members should be straightforward and honest in all professional and business relationships

• Members should not use client information for personal advantage

Which of these statements provides the best explanation of professional behavior

• Members should act diligently and in accordance with applicable technical and professional standards

• Members should not bring the profession into disrepute and should maintain professionalism image

• Members should be straightforward and honest in all professional and business relationships

• Members should not use client information for personal advantage

A member was found guilty of ethical misconduct by failing

to respond to the professional clearance requests from

another audit firm. This is a breach of which fundamental

principle?

• Integrity

• Independence

• Professional behaviour

• Professional competence & due care

Which of the following statements best describes the

conceptual framework approach to ethics?

• A set of rules which must be followed in all circumstances

• A set of principles which the auditor applies based on

  professional judgment

• The conceptual framework is set out in company law

• A set of principles which the auditor applies at their

  discretion

Why do auditors need to be independent?

• To ensure the financial statements give a true and fair view

• To ensure users of the auditor's report can place reliance on

  it and have faith it is not biased

• To provide more regulation for auditors to increase the

  perception of quality

• The law requires it

Which of the following is NOT a threat to objectivity?

• Independence

• Self-review

• Advocacy

• Intimidation

Which of the following is likely to be the most significant

threat created by the offer of tickets to the World Cup Final?

• Intimidation

• Self-interest

• Advocacy

• Self-review

Importance of professional ethics as follows except

• Responsibility

• Done faster

• Doing work truly

• Autonomy

The following are elements of a quality control system except

• Leadership

• Ethical requirement

• Limitation

• Human resources