CSC Ethics & Professional Conduct 2

Question 1

A senior consultant discovers that a client's CFO has been inflating revenue figures before an IPO. What is the consultant's primary ethical obligation?

Accepted Answer

Inform the engagement partner and follow the firm's whistleblower protocols

Answer

The consultant must escalate to the engagement partner and follow established firm protocols, which typically include legal review before any external reporting.

Question 2

Which principle best describes the obligation of a senior consultant to avoid personal financial gain from non-public information obtained during an engagement?

Accepted Answer

Independence

Answer

Independence requires consultants to avoid relationships or financial interests that could compromise—or appear to compromise—objectivity, including trading on insider information.

Question 3

A client pressures a senior consultant to change the conclusion of a risk assessment to avoid board-level scrutiny. The consultant should:

Accepted Answer

Refuse to alter findings and document the client's request in writing

Answer

Objectivity requires that conclusions reflect evidence; the consultant must refuse and document the pressure to protect both professional integrity and legal standing.

Question 4

Under the IMA Statement of Ethical Professional Practice, which of the following best illustrates a breach of the Credibility standard?

Accepted Answer

Presenting financial data selectively to support a predetermined conclusion

Answer

Credibility requires communicating information fairly and objectively; selective presentation that misleads stakeholders directly violates this standard.

Question 5

A senior consultant is asked to perform due diligence on a company in which her spouse holds a significant equity stake. The most appropriate action is to:

Accepted Answer

Recuse herself and notify the engagement manager of the conflict

Answer

A direct financial interest through a family member creates an actual conflict of interest that requires recusal, not merely disclosure.

(CSC) Certified Senior Consultant Practice Test

(CSC) Certified Senior Consultant Practice Test

CSC Ethics & Professional Conduct 2