Professional Ethics in Accounting Flashcards
7 cards from real AAT L2 practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Professional Ethics in Accounting flashcards as text
A bookkeeper discovers their employer has been paying cash wages 'off the books' to avoid National Insurance contributions. What is the most appropriate first step?
Answer: Raise the concern internally with a senior manager or director
AAT guidance recommends raising concerns internally first before escalating to external authorities, unless internal routes are compromised.
Which of the following best describes 'objectivity' as a fundamental principle under the AAT Code of Professional Ethics?
Answer: Not allowing bias, conflicts of interest or undue influence to override professional judgements
Objectivity requires that professional judgements are not compromised by bias, conflict of interest, or undue influence from others.
An AAT member is offered free sports tickets by a supplier hoping to win a contract. Accepting the tickets would most likely threaten which fundamental principle?
Answer: Objectivity
Gifts from suppliers create a self-interest threat to objectivity by potentially influencing the member's professional judgement.
Under the UK Money Laundering Regulations, what is a 'suspicious activity report' (SAR)?
Answer: A formal disclosure made to the National Crime Agency when money laundering is known or suspected
A SAR must be submitted to the National Crime Agency (NCA) when a person knows or suspects money laundering activity.
What does 'tipping off' mean in the context of anti-money laundering legislation?
Answer: Alerting a suspect that a SAR has been filed or an investigation is underway
Tipping off is a criminal offence that occurs when someone warns a person under investigation that they have been reported for money laundering.
A client asks their accountant to include personal holiday expenses as a business cost in their accounts. The accountant refuses. Which fundamental principle primarily supports this refusal?
Answer: Integrity
Integrity requires accountants to be straightforward and honest, refusing to be party to false or misleading information.
Which body is the primary regulator for anti-money laundering supervision of AAT members in practice in the UK?
Answer: The AAT itself
The AAT acts as an anti-money laundering supervisory body for its members in practice under the Money Laundering Regulations.