CB Professional Ethics & Standards 2

Question 1

A bookkeeper discovers that a client has been systematically underreporting cash sales. What is the FIRST step the bookkeeper should take?

Accepted Answer

Discuss the discrepancy privately with the client or management

Answer

The bookkeeper should first bring the discrepancy to the client's or management's attention internally before taking further action.

Question 2

Which principle requires a bookkeeper to avoid situations where personal interests could improperly influence professional judgment?

Accepted Answer

Objectivity

Answer

Objectivity requires that professional judgments be based on facts and evidence, free from personal bias or conflicting interests.

Question 3

A bookkeeper who accepts gifts from vendors in exchange for favorable payment terms is violating which ethical principle?

Accepted Answer

Integrity

Answer

Integrity prohibits accepting gifts or inducements that could compromise or appear to compromise professional judgment.

Question 4

Under AIPB standards, a Certified Bookkeeper who performs work they are not qualified to do is violating the principle of:

Accepted Answer

Professional competence and due care

Answer

Professional competence and due care require bookkeepers to only undertake tasks for which they have adequate training and skills.

Question 5

A client asks their bookkeeper to back-date invoices to shift revenue into a prior accounting period. The bookkeeper should:

Accepted Answer

Refuse, as this constitutes financial statement fraud

Answer

Back-dating invoices to manipulate reported revenue is fraudulent regardless of the client's instructions or the amounts involved.

(CB) Certified Bookkeeper Practice Test