FMGT Final Exam Questions and
Correct Answers 2026 Updated.
Chartered Professional Accountant (CPA) - Answer an accountant who has met the
examination and experience requirements of CPA Canada
Professional designations - Answer acknowledgement of educational achievement from an
agency to assure qualification to perform a job
Three professional designations for accountants in Canada - Answer - Chartered Accountants
(CAs)
- Certified General Accountants (CGAs)
- Certified Management Accountants (CMAs)
Legacy designation - Answer The accounting designation of CPA's who joined as part of the
initial merger of accounting bodies. It is the name of their prior accounting designation that
must be used in conjunction with the CPA designation until November 1, 2022
Public accountants - Answer designated accountants that provide services to clients in the
practice of public accounting
Private accountants - Answer accountants that only work for one employer that is not a
public accounting firm
Professional conduct - Answer - apply to public and private accountants
- confidentiality of info that accountant is privy to
- maintenance of profession's reputation
- work with integrity and due care, competence, refusal to be associated with false or
misleading info, compliance with professional standards
-
Independence - Answer - no financial interest outside of the current business relationship
- auditors and other accountants must not be influenced by personal or professional gain from
their auditing or accounting decisions
- usually only applicable to public practice
Designated accountants - Answer Accountants who have met the education, examination,
and experience requirements of an accounting body
, Audit - Answer - done by designated accountants
- financial examination
- conducted by independent accountants who express opinion on whether or not the financial
statements fairly reflect the economic events that occurred during that accounting period
- both company and auditor must behave in ethical manner
Publicly traded companies - Answer Businesses that are incorporated and list/sell their shares
on a public stock exchange
Relationship among accounting and business entities - Answer - provincial securities
commissions oversee operations of public companies
- public companies receive audits, compliance, and advisory services from independent
accounting firms
- public companies have decision makers including investors, creditors, and regulatory
organizations
CPA Canada Advanced Certificate in Accounting and Finance (ACAF) - Answer - program that
prepares people for intermediate level accounting and finance roles
- courses delivered through programs at postsecondary institutions as an alternative to pursuing
a professional designation
- discontinued with last exams written in February 2021
Ethics - Answer rules of behaviour based on what is good or bad
Ethical conflict in accounting and business - Answer - investors, creditors, and regulatory
bodies need reliable info
- companies want to make themselves look the best they can for those people
- potential for conflict, scandals that make headlines
- many changes made after Enron scandal
Shareholder - Answer a person or company who owns one or more shares of stock in a
corporation
Generally Accepted Accounting Principles (GAAP) - Answer accounting guidelines, formulated
by the accounting standards board, that specify the standards for how accountants must record,
measure, and report financial information
Correct Answers 2026 Updated.
Chartered Professional Accountant (CPA) - Answer an accountant who has met the
examination and experience requirements of CPA Canada
Professional designations - Answer acknowledgement of educational achievement from an
agency to assure qualification to perform a job
Three professional designations for accountants in Canada - Answer - Chartered Accountants
(CAs)
- Certified General Accountants (CGAs)
- Certified Management Accountants (CMAs)
Legacy designation - Answer The accounting designation of CPA's who joined as part of the
initial merger of accounting bodies. It is the name of their prior accounting designation that
must be used in conjunction with the CPA designation until November 1, 2022
Public accountants - Answer designated accountants that provide services to clients in the
practice of public accounting
Private accountants - Answer accountants that only work for one employer that is not a
public accounting firm
Professional conduct - Answer - apply to public and private accountants
- confidentiality of info that accountant is privy to
- maintenance of profession's reputation
- work with integrity and due care, competence, refusal to be associated with false or
misleading info, compliance with professional standards
-
Independence - Answer - no financial interest outside of the current business relationship
- auditors and other accountants must not be influenced by personal or professional gain from
their auditing or accounting decisions
- usually only applicable to public practice
Designated accountants - Answer Accountants who have met the education, examination,
and experience requirements of an accounting body
, Audit - Answer - done by designated accountants
- financial examination
- conducted by independent accountants who express opinion on whether or not the financial
statements fairly reflect the economic events that occurred during that accounting period
- both company and auditor must behave in ethical manner
Publicly traded companies - Answer Businesses that are incorporated and list/sell their shares
on a public stock exchange
Relationship among accounting and business entities - Answer - provincial securities
commissions oversee operations of public companies
- public companies receive audits, compliance, and advisory services from independent
accounting firms
- public companies have decision makers including investors, creditors, and regulatory
organizations
CPA Canada Advanced Certificate in Accounting and Finance (ACAF) - Answer - program that
prepares people for intermediate level accounting and finance roles
- courses delivered through programs at postsecondary institutions as an alternative to pursuing
a professional designation
- discontinued with last exams written in February 2021
Ethics - Answer rules of behaviour based on what is good or bad
Ethical conflict in accounting and business - Answer - investors, creditors, and regulatory
bodies need reliable info
- companies want to make themselves look the best they can for those people
- potential for conflict, scandals that make headlines
- many changes made after Enron scandal
Shareholder - Answer a person or company who owns one or more shares of stock in a
corporation
Generally Accepted Accounting Principles (GAAP) - Answer accounting guidelines, formulated
by the accounting standards board, that specify the standards for how accountants must record,
measure, and report financial information
