CAT CAT Business Ethics & Professional Standards 1

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

The AICPA establishes the Code of Professional Conduct that guides accounting professionals, including technicians, in the US.

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

Professional standards require reporting suspected fraud through internal channels first before escalating externally.

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

Independence requires that an accountant has no financial or personal interest that could compromise objectivity.

Question 4

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

Accepted Answer

Confidentiality

Answer

The confidentiality principle prohibits disclosing client information to third parties without proper authorization.

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

Recording personal expenses as business expenses is fraudulent, and a CAT must refuse to participate in any misrepresentation.

(CAT) Certified Accounting Technician Practice Test