Professional Ethics & Standards Flashcards
7 cards from real CB practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Professional Ethics & Standards flashcards as text
When a bookkeeper realizes they have made a material error in a client's financial records, ethical standards require them to:
Answer: Disclose the error to the client and correct it promptly
Transparency and integrity require that material errors be disclosed to the client and corrected as soon as they are discovered.
A bookkeeper is asked to prepare financial statements using an accounting method that does not comply with GAAP. The client argues it better reflects economic reality. What should the bookkeeper do?
Answer: Refuse and explain that adherence to GAAP is a professional obligation
Professional standards require bookkeepers to follow GAAP; departing from GAAP without proper disclosure and authority is unethical.
Which of the following scenarios represents a SELF-INTEREST threat to a bookkeeper's objectivity?
Answer: Having a financial stake in a client's business
Holding a financial interest in a client creates a self-interest threat because the bookkeeper may be motivated to favor outcomes that benefit their investment.
AIPB's Code of Ethics applies to Certified Bookkeepers in which situations?
Answer: In all professional activities, whether employed or self-employed
The AIPB Code of Ethics governs all professional activities of Certified Bookkeepers regardless of their employment setting or engagement structure.
A bookkeeper suspects that a coworker is embezzling small amounts from petty cash. What is the most ethical course of action?
Answer: Document observations and report suspicions to a supervisor or appropriate authority
Ethical standards require reporting suspected fraud through proper internal channels, regardless of the dollar amount involved.
Maintaining professional competence requires a Certified Bookkeeper to:
Answer: Engage in continuing education to stay current with evolving regulations and standards
Professional competence is an ongoing obligation requiring continuous learning to keep pace with changes in tax law, accounting standards, and technology.
Which behavior would be considered a violation of professional ethical standards for a Certified Bookkeeper?
Answer: Exaggerating credentials in marketing materials to attract clients
Misrepresenting credentials or qualifications in marketing violates the integrity principle and can constitute fraud.