AAT L2 Professional Ethics in Accounting

Question 1

Which of the following is one of the five fundamental ethical principles in the AAT Code of Professional Ethics?

Accepted Answer

Integrity

Answer

Maximising profit

Answer

Competitiveness

Answer

Efficiency

Question 2

An accountant who avoids bias and conflicts of interest is demonstrating which fundamental principle?

Accepted Answer

Objectivity

Answer

Confidentiality

Answer

Professional behaviour

Answer

Integrity

Question 3

Which of the following best describes 'professional behaviour' as an ethical principle?

Accepted Answer

Acting in accordance with relevant laws and regulations and avoiding conduct that discredits the profession

Answer

Completing all work on time

Answer

Keeping all client information confidential

Answer

Charging clients reasonable fees

Question 4

What is a 'self-interest threat' in the context of professional ethics?

Accepted Answer

A threat arising from a financial or other interest of an accountant or a close family member that could inappropriately influence judgement

Answer

The desire to only work on interesting tasks

Answer

The temptation to copy a colleague's work

Answer

Pressure from a manager to work additional hours

Question 5

'Professional competence and due care' as an ethical principle requires an accountant to:

Accepted Answer

Maintain professional knowledge and skill at the required level and act diligently in accordance with applicable standards

Answer

Only accept work they are fully expert in

Answer

Charge clients fairly for all services provided

Answer

Guarantee that no errors will occur in their work

Question 6

Which of the following is an example of a 'familiarity threat' to ethical principles?

Accepted Answer

An accountant who has worked with the same client for many years and may have become too sympathetic to their interests

Answer

An accountant who is new to a role and lacks experience

Answer

An accountant who is given a large workload and may make errors

Answer

An accountant who is offered a higher salary by a rival firm

Question 7

The principle of confidentiality means an accountant should:

Accepted Answer

Not disclose client information to third parties without proper authority, unless there is a legal or professional duty to do so

Answer

Never share any information about their work with anyone

Answer

Keep all business information permanently and absolutely secret

Answer

Only share information with their direct line manager