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SW - Code of Ethics

The document contains 7 multiple choice questions regarding the Code of Ethics for Professional Accountants in the Philippines. The questions cover topics such as which statements are correct or incorrect regarding the Code, the reasons for establishing ethical standards for the accounting profession, fundamental ethical principles, and requirements for independence and conflicts of interest.

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Judy Ann Imus
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310 views

SW - Code of Ethics

The document contains 7 multiple choice questions regarding the Code of Ethics for Professional Accountants in the Philippines. The questions cover topics such as which statements are correct or incorrect regarding the Code, the reasons for establishing ethical standards for the accounting profession, fundamental ethical principles, and requirements for independence and conflicts of interest.

Uploaded by

Judy Ann Imus
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

Which statement is incorrect regarding the Code of Ethics for Professional Accountants in the
Philippines?
a. Professional accountants refer to persons who is Certified Public Accountants (CPA) and
who hold a valid certificate issued by the Board of Accountancy.
b. Where a national statutory requirement is in conflict with a provision of the IFAC Code, the
IFAC Code requirement prevails.
c. The Code of Ethics for Professional Accountants in the Philippines is mandatory for all CPAs
and is applicable to professional services performed in the Philippines on or after January 1,
2004.
d. Professional accountants should consider the ethical requirements as the basic principles
which they should follow in performing their work.

2. Which statement is correct regarding the Code of Ethics for Professional Accountants in the
Philippines?
a. Professional accountants refer to persons who are Certified Public Accountants (CPA) in
public practice and who hold a valid certificate issued by the Board of Accountancy.
b. It is practical to establish ethical requirements which apply to all situations and
circumstances that professional accountants may encounter.
c. Professional accountants should consider the ethical requirements as the ideal principles
which they should follow in performing their work.
d. All CPAs are expected to comply with the ethical requirements of the Code and other ethical
requirements that may be adopted and approved by IFAC. Apparent failure to do so may
result in an investigation into the CPA’s conduct.

3. Which of the following statements best explains why the CPA profession has found it essential to
establish ethical standards and means for ensuring their observance?
a. Vigorous enforcement of an established code of ethics is the best way to prevent
unscrupulous acts.
b. Ethical standards that emphasize excellence in performance over material rewards
establish a reputation for competence and character.
c. A distinguishing mark of a profession is its acceptance of responsibility to the public.
d. A requirement for a profession is to establish ethical standard that stress primarily a
responsibility to clients and colleagues.

4. Which of the following fundamental ethical principles requires a professional accountant to act
diligently and in accordance with applicable technical and professional standards?
a. Objectivity
b. Professional behavior
c. Professional competence and due care
d. Integrity

5. Which part of the Code establishes the Fundamental principles of professional ethics for
professional accountant and provides a conceptual framework that professional accountants
shall apply to identify threats to compliance with the fundamental principles evaluate the
significance of the threats identified, and apply safeguards, when necessary, to eliminate the
threats or reduce them to an acceptable level?
a. Part A c. Part C
b. Part B d. Part D

6. In the case of audit engagements, it is in public interest and, therefore, required by the Code
that members of audit teams, firms and network firms shall be independent of audit clients.
Independence requires
a. Independence of mind only
b. Independence in appearance only
c. Both independence of mind and independence in appearance
d. Either independence of mind and independence in appearance

7. Close family include the following, except


a. Parent c. Non-dependent child
b. Sibling d. Spouse

8. The Code recognizes that the objectives of the accountancy profession are to work to the
highest standards of professionalism, to attain the highest levels of performance and generally
to meet the public interest requirement set out above. These objectives require four basic
needs to be met including the following, except
a. Credibility c. Professionalism
b. Quality of Services d. Integrity

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