Ethics for Accountants Flashcards
6 cards from real AAT L3 practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Ethics for Accountants flashcards as text
The AAT is a member body of which umbrella organisation for UK accountancy bodies?
Answer: CCAB (Consultative Committee of Accountancy Bodies)
The CCAB (Consultative Committee of Accountancy Bodies) is the umbrella body for the major UK and Irish professional accountancy bodies including AAT, ICAEW, ICAS, ICAI, ACCA, and CIPFA.
Professional behaviour requires accountants to:
Answer: Comply with relevant laws and regulations and avoid conduct that discredits the profession
Professional behaviour requires compliance with relevant laws and regulations, and avoidance of any action that brings the profession into disrepute or that a reasonable person would find objectionable.
Which of the following would constitute a breach of confidentiality by an accountant?
Answer: Disclosing client information to a competitor company
Disclosing client information to a competitor company is a clear breach of confidentiality; there is no legal or professional basis for such disclosure, and it could cause significant harm to the client.
'Ethical safeguards' are measures that:
Answer: Reduce the likelihood or significance of threats to fundamental principles to an acceptable level
Safeguards are actions or measures taken to eliminate or reduce threats to fundamental principles to an acceptable (low) level. They include firm-level policies, professional standards, and engagement-specific procedures.
Under the AAT Code, an accountant in practice should NOT accept gifts from a client if:
Answer: The gift is more than a trivial token and could reasonably be seen as influencing the accountant's behaviour
Gifts and hospitality above a trivial level create a self-interest threat or intimidation threat; the accountant should decline gifts that could be seen as an attempt to influence their professional judgement.
Which fundamental principle is MOST directly threatened when an accountant provides tax planning advice that they are not technically qualified to give?
Answer: Professional competence and due care
Providing advice outside one's competence directly threatens the principle of professional competence and due care; the client may receive flawed guidance and suffer harm as a result.