Accounting Multiple Choice Question – 10 November 2026

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

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