Group 2

The following statement is a definition of which fundamental ethical principle? “Basing decisions on real facts rather than being influenced by personal beliefs or feelings.”

• Integrity

• Objectivity

• Confidentiality

• Professional behaviour

A professional accountant who complies with the law and does not bring the accounting profession into disrepute is upholding the fundamental ethical principle of…………?

• Professional behaviour

• Objectivity

• Confidentiality

• Competence and due care

Which of the following is FALSE?

• A rule-based code requires a professional accountant to comply with a set of specific rules.

• Professional ethics is a framework of ethical guidance allowing principles to be applied to different situations, and is therefore effective in a situation that is changing rapidly.

• If guidance is principles-based then it does not contain rules prohibiting certain activities.

• In the UK, people apply principles-based approach.

The accountant discovers a significant error on checking some work, and he was responsible for making the original error. What is the ethical threat?

• Self-review

• Intimidation

• Self-interest

• Advocacy

What is the main disadvantage of the rules-based approach in ethical decision-making?

• It allows for too much subjectivity

• It is difficult to amend the rules

• The list of rules may be incomplete

• It encourages independent judgment

Which of the following best describes an ethical threat?

• A situation where an accountant receives a promotion

• A temptation to act against ethical codes

• A professional opportunity to grow

• A requirement to follow accounting standards

Why is independence important for accountants?

• It ensures higher salary levels

• It allows flexibility in financial reporting

• It increases reliance and trust in their work

• It reduces the need for regulation

What is a benefit of the principles-based approach?

• Ensures all threats are listed clearly

• Encourages standardized decision-making

• Allows for flexible judgment based on specific situations

• Eliminates the need for ethical safeguards

A professional accountant who continuously updates their knowledge and skills is complying with which ethical principle?

• Objectivity

• Confidentiality

• Professional Competence

• Integrity

Which of the following is a violation of the confidentiality principle?

• Refusing to work overtime.

• Sharing internal financial reports with friends.

• Making an honest mistake in calculation.

• Forgetting to attend a training session.