Tag: Topic 2

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

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 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.

• 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.

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.