AAT L3 Ethics for Accountants

Question 1

The five fundamental principles of the AAT Code of Professional Ethics include all of the following EXCEPT:

Accepted Answer

Independence

Answer

Integrity

Answer

Objectivity

Answer

Professional behaviour

Question 2

Integrity in professional ethics requires an accountant to be:

Accepted Answer

Straightforward and honest in all professional and business relationships

Answer

Highly qualified and technically competent

Answer

Independent of all clients

Answer

Always available to clients

Question 3

Which of the following is an example of a self-interest threat?

Accepted Answer

An accountant holds shares in a client company

Answer

An accountant reviews their own tax return

Answer

An accountant is close friends with a client's director

Answer

An accountant promotes a client's investment opportunity

Question 4

Under the AAT Code, if an accountant is asked to produce information they know to be misleading, they should:

Accepted Answer

Refuse to produce the misleading information

Answer

Produce it if instructed by a senior manager

Answer

Add a disclaimer to the information

Answer

Produce it but inform the client in writing

Question 5

The objectivity principle requires an accountant to:

Accepted Answer

Not allow bias, conflict of interest, or undue influence to override professional judgements

Answer

Always agree with management's accounting judgements

Answer

Be fully independent from all clients at all times

Answer

Only serve one client at a time

Question 6

What is 'money laundering' in the context of professional ethics for accountants?

Accepted Answer

The process of concealing the origins of criminally obtained money to make it appear legitimate

Answer

Transferring money between business bank accounts

Answer

Processing cash sales through the accounting system

Answer

Paying employee salaries in cash