Ethics for Accountants Flashcards
6 cards from real AAT L3 practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Ethics for Accountants flashcards as text
Which of the following bodies can a UK accountant use for ethical guidance if their employer is unresponsive?
Answer: AAT's ethics support service or CCAB guidance
AAT members can seek guidance from AAT's ethics support helpline or the CCAB's (Consultative Committee of Accountancy Bodies) ethical guidance publications when employer escalation fails to resolve an ethical issue.
The familiarity threat to ethical behaviour arises from:
Answer: A long-standing personal relationship with a client that makes it hard to be objective
Familiarity threats develop when an accountant becomes so close to a client that they sympathise too readily with the client's interests and accept their judgements without adequate scrutiny.
An accountant discovers their employer has been fraudulently claiming expenses. After raising the concern internally with no resolution, the next appropriate step is:
Answer: Report to the appropriate regulatory authority or use protected whistleblowing channels
Where internal escalation fails to resolve a serious ethical issue such as fraud, the accountant may need to report to an external regulatory authority (e.g., HMRC, FRC, or the police) or use whistleblowing protection.
Social engineering in the context of cybersecurity and professional ethics refers to:
Answer: Manipulating people into divulging confidential information or taking unsafe actions
Social engineering is a manipulation technique used by fraudsters to trick individuals into revealing passwords, confidential data, or performing actions that compromise security — relevant to accountants protecting client data.
Data protection obligations for accountants handling client personal data include:
Answer: Processing personal data lawfully, transparently, and only retaining it as long as necessary
Under UK GDPR, accountants must process personal data lawfully, fairly, and transparently; limit retention to the period necessary for the purpose; and implement appropriate security measures to protect the data.
The intimidation threat to ethical principles arises when:
Answer: A client or employer attempts to coerce the accountant into acting improperly through threats
Intimidation threats occur when an accountant is deterred from acting objectively through actual or implied threats — for example, threats of dismissal, litigation, or damaging the accountant's professional reputation.