CGA Ethics & Professional Standards Flashcards
6 cards from real CGA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CGA Ethics & Professional Standards flashcards as text
Which of the following scenarios represents a self-review threat to auditor independence?
Answer: The auditor's firm prepared the financial statements it is now auditing
A self-review threat occurs when the auditor must evaluate work previously done by themselves or their firm, impairing objectivity.
The 'threats and safeguards' approach in the CPA Code of Ethics requires a member to:
Answer: Identify threats to compliance, evaluate their significance, and apply safeguards
The conceptual framework requires identifying threats, assessing their significance, and applying appropriate safeguards to reduce them to acceptable levels.
An accountant faces an ethical conflict when:
Answer: Employer pressure conflicts with compliance with professional standards
An ethical conflict arises when pressure from an employer or client conflicts with the accountant's obligation to comply with professional and ethical standards.
Which body is primarily responsible for setting ethical standards for CPAs/CGAs in the United States?
Answer: AICPA
The American Institute of Certified Public Accountants (AICPA) issues the Code of Professional Conduct that governs CPA ethics in the US.
A CGA who advertises services in a false or misleading manner violates which fundamental principle?
Answer: Professional behavior
Professional behavior requires CGAs to comply with relevant laws and avoid any action that discredits the profession, including false advertising.
What is the primary purpose of continuing professional education (CPE) requirements for CGAs?
Answer: To ensure members maintain competence throughout their careers
CPE requirements exist to ensure CGAs maintain and update their professional knowledge and skills, upholding the principle of professional competence.