The Multiple Choice Questions Blog

Which ONE of the following Classes Of Individual MAYBE permitted to own a material financial interest in an audit client?

Select ONE answer:

1. A parent of a member of the audit team
2. A member of the audit team
3. A minor child of a member of the audit team
4. A spouse of a member of the audit team

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 – a parent of a member of an audit team may own a material financial interest in an audit client – provided they are not a dependant, which would not normally be assumed to be the case.
2. Not correct
3. Not correct
4. Not correct

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Which ONE of the following should an auditor consider NOT if there is a threat to independence?

Select ONE answer:

1. Withdrawing from the engagement
2. Applying specific safeguards
3. Making disclosures to the client
4. Making disclosures to ICAEW

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 – Making disclosures to ICAEW is no substitute for the other options.

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There are two main approaches to a code of professional ethics: a rules-based ethical code and a principles-based code.

Indicate whether the following statement is true, false, not relevant or depends on the situation.

• ICAEW uses a rules-based approach.

Select ONE answer:

1. Is not relevant
2. True
3. False
4. Depends on the situation

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 uses a principles-based approach.
4. Not correct

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

There are two main approaches to a code of professional ethics: a rules-based ethical code and a principles-based code.

Indicate whether the following statement is true, false, not relevant or depends on the situation.

• A rules-based code requires a professional accountant to identify, evaluate and address threats to compliance with fundamental ethical principles.

Select ONE answer:

1. True
2. False
3. Is not relevant
4. Depends on the situation

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 – A rules-based code does not require auditor adherence to a set of principles.
3. Not correct
4. Not correct

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

There are two main approaches to a code of professional ethics: a rules-based ethical code and a principles-based code.

Indicate whether the following statement is true, false, not relevant or depends on the situation.

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

Select ONE answer:

1. False
2. True
3. Is not relevant
4. Depends on the situation

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 – A principles-based code does not contain specific rules for auditor compliance.
2. Not correct
3. Not correct
4. Not correct

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