Accounting Ethics 5403 Exam
Questions & Answers (Grade A+)
Beware of Conflict of Interest because... -
correct answer ✅Even well-intentioned professionals, who believe
they are solely concerned with the welfare of their client, science,
society, and the like are often affected by conflicts of interest of
which they are often not even aware.
Naive Realism 1. -
correct answer ✅1. we believe we perceive object and events
clearly as they are
Naive Realism 2. -
correct answer ✅2. We assume that other reasonable people see
things the same way we do. If they disagree with us, they obviously
aren't seeing clearly.
Naive Realism 3. -
correct answer ✅3. We believe we have only the best and most
honorable motives
Blind spot example -
correct answer ✅all of us are unaware of our blind spots. Those
who "swim" in the waters of privilege have a particular motivation
,Accounting Ethics 5403 Exam
Questions & Answers (Grade A+)
to remain oblivious - all of us are blind to whatever privileges life
has handed to us
Integrity and Objectivity Rule -
correct answer ✅Accountants shall maintain objectivity and
integrity and shall be free of conflicts of interest in performing
professional services, whether they work in PUBLIC ACCOUNTING,
GOVERNMENT, OR INDUSTRY
When is a conflict of interest present? -
correct answer ✅When a person is tempted to neglect or
subordinate duties owed to others for personal gain
When does an accountant - client conflict arise? -
correct answer ✅when accountants' personal goals diverge from
their client obligations
When does dual - client conflict arise? -
correct answer ✅when an accountant provides professional
services to two or more clients who have opposing interests
,Accounting Ethics 5403 Exam
Questions & Answers (Grade A+)
ex: representing buyer and seller, lender and borrower, licensor and
licensee, corporation and its shareholders, business co-owners,
business competitors, or multiple family members
When must accountants avoid conflict of interest -
correct answer ✅when performing any professional service
In evaluating conflict of interest -
correct answer ✅client is defined expansively
Accountants must protect... -
correct answer ✅their employers' interests because the employer
is considered to be the client
ex: employees must protect company trade secrets, policies, and
procedures from being disclosed to competitors
When does conflicts of interest thrive? -
correct answer ✅When ambiguous facts and judgement calls have
to made, such as in the budgeting process
, Accounting Ethics 5403 Exam
Questions & Answers (Grade A+)
ex: skewing departmental profit forecasts, cost accountants help
protect a friends job in a struggling business segment
Does an accountant's obligation to protect employer interests end
upon accepting employment elsewhere? -
correct answer ✅No. Even after quitting one job, accountants may
not share or utilize a prior employer's confidential information at
their new place of employment
The concept of a conflict is defined expansively. It includes 1. -
correct answer ✅1. Even potentially opposing goals that have not
yet arisen
The concept of a conflict is defined expansively. It includes 2. -
correct answer ✅2. perceived conflicts
The concept of a conflict is defined expansively. It includes 3. -
correct answer ✅3. actual conflicts
When evaluating client conflict of interest... -
correct answer ✅An accountant must avoid not only actual
Questions & Answers (Grade A+)
Beware of Conflict of Interest because... -
correct answer ✅Even well-intentioned professionals, who believe
they are solely concerned with the welfare of their client, science,
society, and the like are often affected by conflicts of interest of
which they are often not even aware.
Naive Realism 1. -
correct answer ✅1. we believe we perceive object and events
clearly as they are
Naive Realism 2. -
correct answer ✅2. We assume that other reasonable people see
things the same way we do. If they disagree with us, they obviously
aren't seeing clearly.
Naive Realism 3. -
correct answer ✅3. We believe we have only the best and most
honorable motives
Blind spot example -
correct answer ✅all of us are unaware of our blind spots. Those
who "swim" in the waters of privilege have a particular motivation
,Accounting Ethics 5403 Exam
Questions & Answers (Grade A+)
to remain oblivious - all of us are blind to whatever privileges life
has handed to us
Integrity and Objectivity Rule -
correct answer ✅Accountants shall maintain objectivity and
integrity and shall be free of conflicts of interest in performing
professional services, whether they work in PUBLIC ACCOUNTING,
GOVERNMENT, OR INDUSTRY
When is a conflict of interest present? -
correct answer ✅When a person is tempted to neglect or
subordinate duties owed to others for personal gain
When does an accountant - client conflict arise? -
correct answer ✅when accountants' personal goals diverge from
their client obligations
When does dual - client conflict arise? -
correct answer ✅when an accountant provides professional
services to two or more clients who have opposing interests
,Accounting Ethics 5403 Exam
Questions & Answers (Grade A+)
ex: representing buyer and seller, lender and borrower, licensor and
licensee, corporation and its shareholders, business co-owners,
business competitors, or multiple family members
When must accountants avoid conflict of interest -
correct answer ✅when performing any professional service
In evaluating conflict of interest -
correct answer ✅client is defined expansively
Accountants must protect... -
correct answer ✅their employers' interests because the employer
is considered to be the client
ex: employees must protect company trade secrets, policies, and
procedures from being disclosed to competitors
When does conflicts of interest thrive? -
correct answer ✅When ambiguous facts and judgement calls have
to made, such as in the budgeting process
, Accounting Ethics 5403 Exam
Questions & Answers (Grade A+)
ex: skewing departmental profit forecasts, cost accountants help
protect a friends job in a struggling business segment
Does an accountant's obligation to protect employer interests end
upon accepting employment elsewhere? -
correct answer ✅No. Even after quitting one job, accountants may
not share or utilize a prior employer's confidential information at
their new place of employment
The concept of a conflict is defined expansively. It includes 1. -
correct answer ✅1. Even potentially opposing goals that have not
yet arisen
The concept of a conflict is defined expansively. It includes 2. -
correct answer ✅2. perceived conflicts
The concept of a conflict is defined expansively. It includes 3. -
correct answer ✅3. actual conflicts
When evaluating client conflict of interest... -
correct answer ✅An accountant must avoid not only actual
