Professional Ethics MCQs

1

What is the primary role of 'Professional Skepticism' in an audit?

Moderate · 64% Accuracy

Concept: #ProfessionalEthics #ProfessionalEthicsAndConduct #Auditing

A Ignoring potential risks to save time B Focusing only on the positive aspects of the client's business C Maintaining an attitude that includes a questioning mind and critical assessment of evidence D Assuming that all management representations are true

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2

The principle of 'Integrity' requires an auditor to:

Moderate · 64% Accuracy

Concept: #ProfessionalEthics #ProfessionalEthicsAndConduct #Auditing

A Disclose all audit findings to the public B Always agree with the client's accounting treatment C Provide free consulting services to the client D Refrain from being associated with reports or information that contain a materially false or misleading statement

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3

When an auditor takes on the role of management by making decisions for the client, this creates a:

Moderate · 64% Accuracy

Concept: #ProfessionalEthics #ProfessionalEthicsAndConduct #Auditing

A Management participation threat B Self-interest threat C Familiarity threat D Advocacy threat

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4

Which action is considered a safeguard to reduce threats to compliance with fundamental principles?

Moderate · 64% Accuracy

Concept: #ProfessionalEthics #ProfessionalEthicsAndConduct #Auditing

A Accepting gifts from the client to build rapport B Reducing the scope of audit procedures C Increasing the audit fee to cover potential risks D Involving an additional professional accountant to review the work done

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5

What is the 'Conceptual Framework' approach in the IESBA Code of Ethics primarily used for?

Moderate · 64% Accuracy

Concept: #ProfessionalEthics #ProfessionalEthicsAndConduct #Auditing

A Determining the audit fee structure B Identifying, evaluating, and addressing threats to compliance with fundamental principles C Selecting the audit methodology D Drafting the audit report

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6

If an audit firm has a significant financial interest in an audit client, which threat is most likely to arise?

Moderate · 64% Accuracy

Concept: #ProfessionalEthics #ProfessionalEthicsAndConduct #Auditing

A Management participation threat B Familiarity threat C Advocacy threat D Self-interest threat

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7

Which threat is created when an auditor is deterred from acting objectively because of actual or perceived pressures from the client?

Moderate · 64% Accuracy

Concept: #ProfessionalEthics #ProfessionalEthicsAndConduct #Auditing

A Self-interest threat B Intimidation threat C Advocacy threat D Self-review threat

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8

A long association between the audit engagement partner and the audit client may create which type of threat?

Moderate · 64% Accuracy

Concept: #ProfessionalEthics #ProfessionalEthicsAndConduct #Auditing

A Self-interest threat B Familiarity threat C Intimidation threat D Advocacy threat

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9

What is the primary objective of the 'Professional Behavior' principle?

Moderate · 64% Accuracy

Concept: #ProfessionalEthics #ProfessionalEthicsAndConduct #Auditing

A To maximize the audit firm's profitability B To ensure the auditor acts in a manner that maintains the good reputation of the profession C To minimize the time spent on fieldwork D To ensure the auditor follows the client's instructions

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10

Which of the following constitutes a breach of the principle of 'Confidentiality'?

Moderate · 64% Accuracy

Concept: #ProfessionalEthics #ProfessionalEthicsAndConduct #Auditing

A Disclosing information to comply with technical standards B Discussing client financial details with a friend for professional advice without client consent C Disclosing client information to a court of law under legal compulsion D Providing information to the professional body during an investigation

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