CHAPTER 6 CODE OF ETHICS 2024 QUESTIONS WITH CORRECT ANSWERS ALREADY PASSED AND VERIFIED

1. Which of the following statements best describes why the CPA profession has deemed it essential to promulgate a code of professional ethics and to establish a mechanism for enforcing observation of the Code? a. A distinguishing mark of profession is its acceptance of responsibility to the public. b. A pre-requisite to success is the establishment of an ethical code that primarily defines the professional's responsibility to clients and colleagues. c. A requirement of most state laws calls for the profession to establish a code of ethics. d. An essential means of self-protection for the profession is the establishment of flexible ethical standards by the profession. - CORRECT ANSWER A 2. S1: Professional accountants refer to persons who are registered in the PRC as CPAs and who hold a valid certificate issued by the BOA, whether they be in any sector of practice of accountancy. S2: The Code of Ethics for Professional Accountants in the Philippines is mandatory for all CPAs. a. True, False b. False, True c. True, True d. False, False - CORRECT ANSWER C 3. An inadvertent violation of the Code of Ethics, depending on the nature and significance of the matter, may not compromise compliance with the fundamental principles provided, once the violation is discovered. a. The CPA withdraws from the specific professional service involved. b. A disclaimer of opinion is issued to the client as a result of the violation. c. The violation is corrected promptly and any necessary safeguards are applied. CHAPTER 6 CODE OF ETHICS 2024 QUESTIONS WITH CORRECT ANSWERS ALREADY PASSED AND VERIFIED d. The engagement is promptly transferred to another, non-violationg professional accountant. - CORRECT ANSWER C 4. Which of the following best describes self-interest threat? a. May occur as a result of the financial of other interests of a professional accountant or of an immediate or close family member. b. May occur when a previous judgment needs to be re-evaluated by the professional accountant responsible for that judgment. c. May occur when a professional accountant promotes a position the the point that subsequent objectivity may be compromised. d. May occur when, because of a close relationship, a professional accountant becomes too sympathetic to the interests of others. e. May occur when a professional accountant may be deterred from acting objectively by threats, actual or perceived. - CORRECT ANSWER A 5. Under the revised Code, which fundamental principle is explicitly mentioned to be safeguarded even as the CPA consults with relevant professional bodies and legal advisors? a. Technicality b. Confidentiality c. Integrity d. Objectivity - CORRECT ANSWER B 6. Princess, CPA, has exhausted all relevant possibilities in an ethical conflict which she is trying to resolve. The conflict remains unresolved. Accordingly, the revised Code allows which of the following steps to be taken by Princess? I. Refuse to remain associated with the matter creating the conflict. II. Withdraw from the engagement team or specific assignment.