Question 1. What do you understand by acting in the public interest?
Question 2. Select the FOUR factors below which distinguish a profession from an occupation
A. Qualification required
B. Highly skilled
C. Continuing professional development
D. Self-regulation
E. Highly valuated services
F. Training requirement
G. Licensed practice
H. Ethical codes of conduct
Question 3. What do you understand by money laundering?
Question 4. Which THREE of the following are usually identified as the main prerequisites of fraud?
A. Motivation
B. Dishonesty
C. Immaturity
D. Poverty
E. Iniquity
F. Opportunity
Question 5. What do you understand by the term insider-trading?
Question 6. The following are three arguments explaining why insider trading is wrong and in many countries illegal. Rank the strength of each argument on a scale of 1 to 5 where 1 is a very weak argument and 5 is a very strong argument.
A. Allowing insider trading is unfair to those who cannot use sensitive information for their own financial advantage.
B. Allowing insider trading can damage the trust that investors have in capital markets and may put people off investing.
C. Allowing insider trading makes markets potentially more volatile and riskier than they would otherwise be if no such practice took place.
Question 7. Why are professional ethics important?
Question 8. In the following three situations identify, in each case, which fundamental principles are involved.
(i) A bookkeeper was rushing to complete a piece of work for an important deadline, which her manager had insisted must be met without fail. After she completed the work she carried out certain checks herself, but serious accounting errors were not detected, and there was no time for someone else to check her work.
Which ONE of the following fundamental principles is involved?
a. Integrity
b. Objectivity
c. Professional competence and due care
d. Confidentiality
e. Professional behaviour
(ii) A former longstanding client of an accounting practice is being investigated by the tax authorities. The former client requests the assistance of the practice in representing them in the case being brought. In doing so, the client promises to pay a substantial fee for such assistance and guaranteeing to re-appoint the practice as their accountants in the future.
Which TWO of the following fundamental principles is involved?
a. Integrity
b. Objectivity
c. Professional competence and due care
d. Confidentiality
e. Professional behavior
(iii) Accountant X who runs an accounting practice completes the tax returns for a number of key clients. One of the clients, A, who pays substantial fees to the practice has earned a taxable profit significantly lower than in the previous year. A had not supplied the usual set of bank statements, but did include a full record of all sales and expense receipts.
The following day X completed, checked and submitted the tax return on the basis of the figures and documentation received, without having requested the missing set of bank statements from the client or involving another colleague in the work.
Which ONE of the following fundamental principles are involved?
a. Integrity
b. Objectivity
c. Professional competence and due care
d. Confidentiality
e. Professional behavior
Question 9. What do you understand by the term personal effectiveness?