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 professional body sets the ethical standards that a Certified Accounting Technician in the US is primarily expected to follow?
Answer: AICPA
The AICPA establishes the Code of Professional Conduct that guides accounting professionals, including technicians, in the US.
A CAT discovers their employer has been overstating revenue. What is the most appropriate first step?
Answer: Report internally to management or an ethics hotline
Professional standards require reporting suspected fraud through internal channels first before escalating externally.
What does the concept of 'independence' require from an accounting professional?
Answer: Avoiding financial or personal relationships that could bias judgment
Independence requires that an accountant has no financial or personal interest that could compromise objectivity.
Which ethical principle obligates an accounting technician to keep client information private?
Answer: Confidentiality
The confidentiality principle prohibits disclosing client information to third parties without proper authorization.
If a client asks a CAT to record a personal expense as a business expense, the technician should:
Answer: Refuse and explain the ethical and legal implications
Recording personal expenses as business expenses is fraudulent, and a CAT must refuse to participate in any misrepresentation.
What is 'due professional care' in the context of accounting ethics?
Answer: Applying competence and diligence expected of a skilled professional
Due professional care means performing work with the competence, thoroughness, and diligence of a reasonably skilled practitioner.