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
A bookkeeper is pressured by a supervisor to record a personal expense of the owner as a business expense. This situation is BEST described as:
Answer: An ethical dilemma involving improper expense reporting
Recording personal expenses as business expenses misrepresents the financial statements and may constitute tax fraud.
Under the AIPB standards, how should a Certified Bookkeeper handle a conflict between a client's instructions and professional ethical obligations?
Answer: Prioritize ethical obligations over client instructions when they conflict
Professional ethics take precedence over client demands; a bookkeeper must not compromise standards to satisfy a client's request.
Which of the following is the MOST appropriate way for a Certified Bookkeeper to respond to a subpoena for client records?
Answer: Consult legal counsel and comply with the subpoena as required by law
A legal subpoena overrides ordinary confidentiality obligations, and the bookkeeper should seek legal guidance and comply with the court order.
A client offers a bookkeeper a commission for referring them to a specific lender. Accepting such a commission would most likely violate which principle?
Answer: Objectivity and independence
Accepting referral commissions creates a financial incentive that compromises the bookkeeper's objectivity when advising the client.
Which statement BEST defines the ethical obligation of 'professional behavior' for a Certified Bookkeeper?
Answer: Complying with all relevant laws and avoiding actions that discredit the profession
Professional behavior encompasses compliance with laws and regulations and avoiding conduct that would reflect poorly on the bookkeeping profession.
A Certified Bookkeeper discovers that their client's prior bookkeeper filed fraudulent payroll tax returns. The bookkeeper should:
Answer: Advise the client to consult legal counsel and address the prior fraudulent filings
Discovering prior fraud requires advising the client to seek legal counsel, as correcting fraudulent tax filings has significant legal implications.
When is it ethically permissible for a bookkeeper to disclose confidential client information to another party?
Answer: When required by law, court order, or with the client's explicit written consent
Confidential information may only be shared when legally required, ordered by a court, or when the client has explicitly authorized disclosure in writing.