The Multiple Choice Questions Blog

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

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Which ONE of the following statements is correct?

Select ONE answer:

1. The ICAEW Code of Ethics applies to its members only
2. The ICAEW Code of Ethics applies to its members, employees of member firms and ICAEW students
3. The ICAEW Code of Ethics applies to its members and employees of member firms only
4. The ICAEW Code of Ethics applies to its members, employees of member firms, ICAEW students and all other members of the UK accountancy bodies

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 – As per the ICAEW Code of Ethics, the Code applies to its members, employees of member firms and ICAEW students.
3. Not correct
4. Not correct

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

Which ONE of the following is NOT a stated fundamental principle of the IESBA Code?

Select ONE answer:

1. Courtesy
2. Integrity
3. Objectivity
4. Confidentiality

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 – Independence and Courtesy are not fundamental principles of the lESBA code.
2. Not correct
3. Not correct
4. Not correct

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

Which ONE of the following is NOT a stated fundamental principle of the IESBA Code?

Select ONE answer:

1. Integrity
2. Objectivity
3. Confidentiality
4. Independence

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 – Independence and Courtesy are NOT fundamental principles of the lESBA code.

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

Which ONE of the following describes how an assurance provider would check the existence assertion for a non-current asset?

Select ONE answer:

1. Trace the physical item to the non-current asset register
2. Trace the physical item to the financial statements
3. Trace an entry in the non-current asset register to the physical item
4. Trace an entry in the non-current asset register to the financial statements

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 – ICAEW qualified auditors acting in the UK are subject to the ICAEW Code and the FRC Ethical Standard.
4. Not correct

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