FREE CIA Ethics & Professional Standards Questions and Answers

Question 1

Which principle is fundamental to the integrity of the accounting profession?

Accepted Answer

Integrity

Answer

Independence

Answer

Confidentiality

Answer

Due care

Question 2

What should an accountant do when facing an ethical dilemma?

Accepted Answer

Refer to the code of ethics and seek guidance

Answer

Ignore the issue

Answer

Follow the manager’s advice only

Answer

Resign immediately

Question 3

Confidentiality in accounting requires that professionals:

Accepted Answer

Protect sensitive information unless required by law

Answer

Discuss client details with peers

Answer

Disclose all information for transparency

Answer

Publish all data for internal transparency

Question 4

What is the professional obligation if an accountant identifies fraud?

Accepted Answer

Report it through the appropriate internal channels

Answer

Confront the accused directly

Answer

Ignore minor discrepancies

Answer

Post anonymously online

Question 5

Due care in accounting means:

Accepted Answer

Acting with competence and diligence

Answer

Only working within a company

Answer

Minimizing effort

Answer

Relying on assumptions

Question 6

What is considered a conflict of interest in accounting?

Accepted Answer

Auditing a company you own shares in

Answer

Accepting a gift from a client

Answer

Completing continuing education

Answer

Using software to complete taxes

Question 7

Which organization publishes the Code of Ethics for internal auditors?

Accepted Answer

IIA

Answer

AICPA

Answer

FASB

Answer

SEC

Question 8

Why is independence important in internal auditing?

Accepted Answer

To ensure unbiased evaluations

Answer

To reduce documentation

Answer

To increase office efficiency

Answer

To improve profits

Question 9

What should an accountant do if asked to perform a task outside their competence?

Accepted Answer

Consult or decline if outside professional ability

Answer

Attempt it anyway

Answer

Google the solution

Answer

Assign it to a junior staff member