AAT L2 Professional Ethics in Accounting 4

Question 1

A bookkeeper discovers their employer has been paying cash wages 'off the books' to avoid National Insurance contributions. What is the most appropriate first step?

Accepted Answer

Raise the concern internally with a senior manager or director

Answer

AAT guidance recommends raising concerns internally first before escalating to external authorities, unless internal routes are compromised.

Question 2

Which of the following best describes 'objectivity' as a fundamental principle under the AAT Code of Professional Ethics?

Accepted Answer

Not allowing bias, conflicts of interest or undue influence to override professional judgements

Answer

Objectivity requires that professional judgements are not compromised by bias, conflict of interest, or undue influence from others.

Question 3

An AAT member is offered free sports tickets by a supplier hoping to win a contract. Accepting the tickets would most likely threaten which fundamental principle?

Accepted Answer

Objectivity

Answer

Gifts from suppliers create a self-interest threat to objectivity by potentially influencing the member's professional judgement.

Question 4

Under the UK Money Laundering Regulations, what is a 'suspicious activity report' (SAR)?

Accepted Answer

A formal disclosure made to the National Crime Agency when money laundering is known or suspected

Answer

A SAR must be submitted to the National Crime Agency (NCA) when a person knows or suspects money laundering activity.

Question 5

What does 'tipping off' mean in the context of anti-money laundering legislation?

Accepted Answer

Alerting a suspect that a SAR has been filed or an investigation is underway

Answer

Tipping off is a criminal offence that occurs when someone warns a person under investigation that they have been reported for money laundering.

AAT Level 2 Practice Test

AAT Level 2 Practice Test

AAT L2 Professional Ethics in Accounting 4