Work Effectively in Finance Flashcards
6 cards from real AAT L2 practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Work Effectively in Finance flashcards as text
Which of the following is an internal stakeholder of a business?
Answer: An employee of the business
Internal stakeholders are people within the organisation, such as employees, managers, and directors. External stakeholders include HMRC, banks, customers, suppliers, and shareholders (though shareholders can be considered internal in some classifications).
The ethical principle of objectivity requires a finance professional to:
Answer: Not allow bias, conflict of interest, or undue influence to override professional judgement
Objectivity means a finance professional must exercise independent judgement without bias. They should not let personal relationships, financial interests, or pressure from others compromise the accuracy and fairness of their work.
Which of the following documents would a new employee in a finance team be expected to read and understand?
Answer: The company's policies on data protection, anti-money laundering, and health and safety
New finance employees should familiarise themselves with key policies including data protection (handling of personal data), anti-money laundering procedures (recognising and reporting suspicious activities), health and safety, and the organisation's code of conduct.
Money laundering is best described as:
Answer: The process of making money obtained from criminal activity appear legitimate
Money laundering is the criminal process of disguising the illegal origin of money obtained through criminal activities, making it appear to come from legitimate sources. All finance professionals have a legal duty to report suspected money laundering.
If a finance professional suspects money laundering, they must:
Answer: Report it to the Money Laundering Reporting Officer (MLRO) or the National Crime Agency (NCA)
Under the Proceeds of Crime Act 2002 and Money Laundering Regulations, finance professionals must report suspicions to their organisation's MLRO or directly to the NCA. Failing to report (or tipping off the suspect) is itself a criminal offence.
The accounting profession's fundamental principles include all of the following EXCEPT:
Answer: Maximisation of employer profits
The five fundamental principles are: integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour. Maximising employer profits is not an ethical principle — in fact, pursuing profit through unethical means would violate these principles.