AAT L3 Ethics for Accountants 4

Question 1

The AAT is a member body of which umbrella organisation for UK accountancy bodies?

Accepted Answer

CCAB (Consultative Committee of Accountancy Bodies)

Answer

FRC

Answer

ICAEW

Answer

HMRC

Question 2

Professional behaviour requires accountants to:

Accepted Answer

Comply with relevant laws and regulations and avoid conduct that discredits the profession

Answer

Always maximise fee income

Answer

Act solely in the client's financial interests

Answer

Refuse work that is technically challenging

Question 3

Which of the following would constitute a breach of confidentiality by an accountant?

Accepted Answer

Disclosing client information to a competitor company

Answer

Responding to a court order requiring disclosure of client records

Answer

Reporting suspected money laundering to the NCA via the MLRO

Answer

Answering HMRC's legitimate audit enquiry

Question 4

'Ethical safeguards' are measures that:

Accepted Answer

Reduce the likelihood or significance of threats to fundamental principles to an acceptable level

Answer

Guarantee that ethical threats will never arise

Answer

Are required only for auditors

Answer

Apply only when dealing with government clients

Question 5

Under the AAT Code, an accountant in practice should NOT accept gifts from a client if:

Accepted Answer

The gift is more than a trivial token and could reasonably be seen as influencing the accountant's behaviour

Answer

The gift is delivered by post

Answer

The gift is received before the financial year end

Answer

The client has not disclosed the gift in their accounts

Question 6

Which fundamental principle is MOST directly threatened when an accountant provides tax planning advice that they are not technically qualified to give?

Accepted Answer

Professional competence and due care

Answer

Integrity

Answer

Objectivity

Answer

Confidentiality