Professional Ethics & Standards Flashcards

A consultant working abroad is told a 'facilitation payment' to a local official is customary to release cost audit records. Under U.S. law and professional ethics, the consultant should:

Answer: Refuse improper payments and consult legal counsel and the client on compliant alternatives

Improper payments to officials risk violating anti-bribery laws such as the FCPA and breach professional integrity standards.

A consultant is engaged simultaneously by two competing bidders on the same tender without either's knowledge. This situation is:

Answer: An undisclosed conflict of interest requiring disclosure and consent or withdrawal from one engagement

Serving adverse parties on the same matter without informed consent is a classic conflict that requires disclosure or withdrawal.

A cost consultant's employer asks them to backdate a cost report to support an insurance claim. Complying would primarily constitute:

Answer: Falsification of records, an ethics violation regardless of employer instruction

Backdating documents to influence a claim is falsification, and employer direction does not excuse an individual professional's participation.

Which statement best reflects the hierarchy of obligations in most professional ethics codes applicable to cost engineering?

Answer: Public welfare first, then duties to clients and employers, then to the profession and peers

Ethics codes place the safety and welfare of the public above obligations to clients, employers, and colleagues.

A consultant realizes their firm's proposal team copied a competitor's proprietary estimating methodology obtained from a new hire. The ethical response is to:

Answer: Stop the use of the misappropriated material and inform firm leadership

Using a competitor's proprietary material obtained through a new employee is misappropriation and must be halted and reported internally.

During an audit support engagement, a consultant finds evidence suggesting the client inflated change order costs submitted to a government agency. The consultant should:

Answer: Decline to certify or support the inflated figures and advise the client to correct the submission

A professional may not knowingly support false cost submissions, especially to government agencies, and must urge correction.

A retired mentor asks a CCC to sign off on estimates the mentor prepared, since the mentor's certification has expired. Agreeing to sign work one did not perform or adequately review is:

Answer: Improper 'plan stamping' behavior that violates professional responsibility standards

Signing or certifying work not performed or thoroughly reviewed by the certifying professional violates responsibility standards no matter who prepared it.