IFA Ethics, Law & Professional Responsibilities

Question 1

Which ethical principle requires accountants to avoid conflicts of interest and act in the public interest?

Accepted Answer

Integrity and Objectivity

Answer

Confidentiality

Answer

Professional Competence

Answer

Due Care

Question 2

Under the IFA code of conduct, which action is considered a breach of professional behavior?

Accepted Answer

Promoting false qualifications

Answer

Maintaining audit documentation

Answer

Referring to current laws in reports

Answer

Staying informed about tax codes

Question 3

Which law regulates the handling of personal financial data in the UK?

Accepted Answer

Data Protection Act 2018

Answer

Companies Act 2006

Answer

Finance Act

Answer

GDPR

Question 4

What should a financial professional do when encountering an ethical dilemma?

Accepted Answer

Consult the professional code and seek advice

Answer

Ignore it if it doesn't affect clients

Answer

Report to social media

Answer

Make a personal judgment call

Question 5

Why is continuing professional development (CPD) important for accountants?

Accepted Answer

To maintain competence and relevance

Answer

To increase billable hours

Answer

To qualify for promotions

Answer

To meet licensing requirements

Question 6

What is the main goal of anti-money laundering (AML) regulations?

Accepted Answer

To detect and prevent financial crimes

Answer

To limit corporate growth

Answer

To encourage investment abroad

Answer

To audit government agencies