FREE CTC Ethics & Professional Conduct Questions and Answers

Question 1

What is the main purpose of a professional code of ethics?

Accepted Answer

To guide ethical behavior

Answer

To replace legal regulations

Answer

To outline billing practices

Answer

To promote competition

Question 2

Which action violates confidentiality in tax practice?

Accepted Answer

Releasing info to others without consent

Answer

Discussing details with client

Answer

Providing info to IRS with consent

Answer

Using secure storage

Question 3

What should a professional do when facing a potential conflict of interest?

Accepted Answer

Disclose and obtain consent

Answer

Ignore the conflict

Answer

Proceed without disclosure

Answer

Withdraw immediately

Question 4

Why is integrity important in the tax profession?

Accepted Answer

Builds trust and credibility

Answer

Improves sales

Answer

Avoids legal penalties

Answer

Fulfills marketing goals

Question 5

Which of the following is an example of ethical misconduct?

Accepted Answer

Falsifying reported income

Answer

Correcting math errors

Answer

Referring to another tax expert

Answer

Using proper documentation

Question 6

What role does due diligence play in ethical tax practice?

Accepted Answer

Ensure accuracy and compliance

Answer

Speed up processing

Answer

Reduce documentation

Answer

Avoid extra work

Question 7

When can a tax professional disclose client information to the IRS?

Accepted Answer

Only with legal or written consent

Answer

Anytime it seems appropriate

Answer

With verbal permission

Answer

If the IRS requests informally

Question 8

Which ethical principle involves acting in the best interest of clients?

Accepted Answer

Fiduciary responsibility

Answer

Loyalty to employer

Answer

Following industry trends

Answer

Maximizing revenue

Question 9

What is one consequence of violating professional ethics?

Accepted Answer

Disciplinary actions

Answer

Free advertising

Answer

Increased client base

Answer

Tax benefits