The Multiple Choice Questions Blog

Which ONE of the following statements best describes ethical guidance in the UK?

Select ONE answer:

1. Ethical guidance provides a set of rules which must be followed in all circumstances
2. Ethical guidance provides a set of principles which can be applied at the discretion of the assurance provider
3. Ethical guidance is a framework containing a combination of rules and principles the application of which is dependent on the professional judgement of the assurance provider based on the specific circumstances
4. Ethical guidance is a series of legal requirements

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – Although there are some specific ‘rules’, most ethical guidance is in the form of principles, the spirit of which should be followed by the assurance provider.
4. Not correct

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Which ONE of the following bodies does NOT issue ethical guidance?

Select ONE answer:

1. ICAEW
2. IAASB
3. IESBA
4. FRC

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct – The IAASB issues ISAs but does NOT currently issue ethical guidance.
3. Not correct
4. Not correct

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For each of the following statements concerning professional ethics, select whether they are true, false, depend on the situation, or seek legal advice.

• A framework of ethical guidance prevents accountants from interpreting legalistic requirements narrowly to circumvent ethical requirements.

Select ONE answer:

1. True
2. Depends on the situation
3. False
4. Seek Legal advice

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

For each of the following statements concerning professional ethics, select whether they are true, false, depend on the situation, or seek legal advice.

• A framework of ethical guidance allows principles to be applied to different situations and is therefore effective in rapidly changing contexts.

Select ONE answer:

1. Depends on the situation
2. False
3. Seek Legal advice
4. True

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

For each of the following statements concerning professional ethics, select whether they are true, false, depend on the situation, or seek legal advice.

• Prescriptive ethical guidance rules are beneficial because they place the onus on the accountant to actively consider independence in every situation.

Select ONE answer:

1. Depends on the situation
2. True
3. False
4. Seek Legal advice

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – As following prescriptive rules of ethical guidance may become a mechanical process without due consideration given to the ethical principles of each case.
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.