CAT CAT Business Ethics & Professional Standards

Question 1

Which professional body sets the ethical standards that a Certified Accounting Technician in the US is primarily expected to follow?

Accepted Answer

AICPA

Answer

SEC

Answer

IRS

Answer

FASB

Question 2

A CAT discovers their employer has been overstating revenue. What is the most appropriate first step?

Accepted Answer

Report internally to management or an ethics hotline

Answer

Immediately notify the IRS

Answer

Resign without taking any action

Answer

Correct the records without informing anyone

Question 3

What does the concept of 'independence' require from an accounting professional?

Accepted Answer

Avoiding financial or personal relationships that could bias judgment

Answer

Working without supervision at all times

Answer

Preparing financial statements without client input

Answer

Refusing all forms of compensation

Question 4

Which ethical principle obligates an accounting technician to keep client information private?

Accepted Answer

Confidentiality

Answer

Integrity

Answer

Objectivity

Answer

Due care

Question 5

If a client asks a CAT to record a personal expense as a business expense, the technician should:

Accepted Answer

Refuse and explain the ethical and legal implications

Answer

Record it since the client is paying for the service

Answer

Record it only if the amount is immaterial

Answer

Ask a supervisor to handle the request

Question 6

What is 'due professional care' in the context of accounting ethics?

Accepted Answer

Applying competence and diligence expected of a skilled professional

Answer

Avoiding all client contact to prevent bias

Answer

Filing every document with government agencies

Answer

Obtaining a second opinion on all financial decisions