CAT Business Ethics & Professional Standards Flashcards
6 cards from real CAT practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CAT Business Ethics & Professional Standards flashcards as text
Which concept requires accounting technicians to present information in a way that is neither misleading nor biased?
Answer: Objectivity
Objectivity requires that accounting information and advice are free from personal bias and undue influence.
When is it permissible for a CAT to disclose confidential client information without client consent?
Answer: When required by law or a court order
Confidential information may only be disclosed without consent when legally compelled, such as by a subpoena or regulatory requirement.
What is an 'advocacy threat' in professional ethics?
Answer: Promoting a client's position so strongly that objectivity is compromised
An advocacy threat occurs when championing a client's interests causes the technician to lose professional objectivity.
Which action best demonstrates integrity for an accounting technician?
Answer: Correcting an error in a client's records even when not asked
Integrity means being straightforward and honest, including proactively correcting errors even when it is inconvenient.
What does the 'familiarity threat' refer to in accounting ethics?
Answer: Becoming too sympathetic to a client's interests due to a close relationship
A familiarity threat arises when a long-term or personal relationship with a client erodes the technician's professional skepticism.
What is the primary purpose of a code of ethics in the accounting profession?
Answer: To protect the public interest and maintain trust in financial reporting
A code of ethics exists to safeguard public confidence in the reliability and honesty of financial information provided by accounting professionals.