AAT L2 Professional Ethics in Accounting 3

Question 1

In an accounting context, 'sustainability' is best defined as:

Accepted Answer

Meeting the needs of the present without compromising the ability of future generations to meet their own needs

Answer

Ensuring a business always generates a profit

Answer

Using recycled materials in office stationery

Answer

Reducing the workforce to cut costs

Question 2

Which of the following is an example of an ethical conflict in the workplace?

Accepted Answer

Being asked by a manager to record transactions incorrectly in order to improve the appearance of the financial statements

Answer

Being asked to stay late to complete urgent work

Answer

Disagreeing with a colleague about which accounting software is preferable

Answer

Receiving a larger-than-expected workload from a supervisor

Question 3

If you suspect that a colleague is committing fraud, what should you do first?

Accepted Answer

Follow your organisation's internal procedures for reporting concerns, such as speaking to a supervisor or using a whistleblowing policy

Answer

Ignore it, as it is not your direct responsibility

Answer

Confront the colleague directly and demand an explanation

Answer

Report it immediately to the police without taking any internal steps

Question 4

In accounting, 'whistleblowing' refers to:

Accepted Answer

Reporting misconduct or wrongdoing within an organisation through appropriate internal or external channels

Answer

Indicating to a manager that you are too busy to take on more work

Answer

Resigning from a job due to ethical concerns about the employer

Answer

Reporting a client's tax affairs to HMRC

Question 5

Under which piece of UK legislation are workers who make protected disclosures (whistleblowing) legally protected?

Accepted Answer

The Public Interest Disclosure Act 1998

Answer

The Companies Act 2006

Answer

The Proceeds of Crime Act 2002

Answer

The Data Protection Act 2018

Question 6

Which of the following best describes 'professional scepticism' as applied in accounting?

Accepted Answer

Maintaining an alert and questioning mind, and critically assessing information received rather than accepting it at face value

Answer

Assuming that all clients are dishonest until proven otherwise

Answer

Refusing to complete tasks that appear overly complex

Answer

Always performing double-checks on every calculation made

Question 7

The concept of 'public interest' in accounting means that accountants have a responsibility to:

Accepted Answer

Act in a way that benefits society as a whole, not solely their employer or individual clients

Answer

Prioritise their employer's financial interests at all times

Answer

Maximise the profitability of their clients' businesses

Answer

Follow all instructions given to them by management without question