CGA CGA Ethics & Professional Standards

Question 1

Which fundamental principle of the CPA/CGA Code of Professional Conduct requires members to be straightforward and honest in all professional and business relationships?

Accepted Answer

Integrity

Answer

Objectivity

Answer

Confidentiality

Answer

Professional behavior

Question 2

A CGA discovers during an audit that a client is engaged in tax fraud. Under ethical standards, the CGA should first:

Accepted Answer

Discuss the matter with the client and consider resigning if unresolved

Answer

Immediately report to the IRS

Answer

Ignore it if it doesn't affect the financial statements

Answer

Disclose it in the audit report without consulting the client

Question 3

The concept of 'independence in appearance' for an auditor means:

Accepted Answer

The auditor avoids any situation that could cause a reasonable observer to doubt objectivity

Answer

The auditor has no financial interest in the client

Answer

The auditor is not personally acquainted with management

Answer

The auditor works from a remote location

Question 4

Which of the following is NOT a threat to a CGA's independence?

Accepted Answer

Technical competence threat

Answer

Self-interest threat

Answer

Familiarity threat

Answer

Advocacy threat

Question 5

What does the principle of professional competence and due care require of a CGA?

Accepted Answer

Maintaining technical knowledge and acting diligently in providing professional services

Answer

Obtaining a minimum number of clients each year

Answer

Disclosing all client information to regulatory bodies

Answer

Refusing engagements outside one's specialty

Question 6

Client confidentiality under professional standards generally permits disclosure without client consent when:

Accepted Answer

Required by a court order or legal/professional duty

Answer

A competitor requests the information

Answer

The CGA believes disclosure would benefit the client

Answer

Another accountant asks for peer review purposes