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

Integrity requires CPAs to be honest and straightforward, avoiding any actions that discredit the profession.

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

Professional standards require the accountant to first communicate with client management, and if unresolved, consider resignation to avoid association with the misconduct.

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

Independence in appearance means the auditor avoids circumstances that might lead an informed third party to question their objectivity, even if actual independence exists.

Question 4

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

Accepted Answer

Technical competence threat

Answer

The recognized threats to independence are self-interest, self-review, advocacy, familiarity, and intimidation; technical competence is not categorized as a threat to independence.

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

Professional competence and due care requires CGAs to maintain current knowledge, act diligently, and apply relevant standards carefully.

(CGA) Certified General Accountant Practice Test

(CGA) Certified General Accountant Practice Test

CGA CGA Ethics & Professional Standards