Code of Ethics 1

Which statement is incorrect regarding the Code of Ethics for Professional Accountants in thePhilippines?

• Professional accountants refer to persons who are Certified Public Accountants (CPA)and who hold a valid certificate issued by the Board of Accountancy.

  
  

• Where a national statutory requirement is in conflict with a provision of the IFAC Code,the IFAC Code requirement prevails.

  
  

• The Code of Ethics for Professional Accountants in the Philippines is mandatory for allCPAs and is applicable to professional services performed in the Philippines on or after January 1, 2004.

  
  

• Professional accountants should consider the ethical requirements as the basic principles which they should follow in performing their work.

  
  

Assurance engagement include the following, except

• An engagement conducted to provide a high level of assurance that the subject matter conforms in all material respects with identified suitable criteria.

  
  

• An engagement conducted to provide a moderate level of assurance that the subject matter is plausible in the circumstances.

  
  

• An engagement in accordance with the Philippine Standard on Assurance Engagement(s) issued by the Philippine Auditing Standards and Practices Council as approved by the Board of Accountancy/Professional Regulation Commission.

  
  

• An engagement to perform agreed-upon procedures.

  
  

In order to achieve the objectives of the accountancy profession, professional accountants have to observe a number of prerequisites or fundamental principles. The fundamental principles include the following, except

• Objectivity

  
  

• . Professional Competence and due Care

  
  

•  Technical Standards

  
  

•  Confidence

  
  

The principle of professional behavior requires a professional accountant to

• Be straightforward and honest in performing professional services.

  
  

•  Be fair and should not allow prejudice or bias, conflict of interest or influence of others to override objectivity.

  
  

•  Perform professional services with due care, competence and diligence.

•  Act in a manner consistent with the good reputation of the profession and refrain from any conduct which might bring discredit to the profession.

  
  

Which statement is incorrect regarding the Code of Code of Ethics for Professional Accountants in the Philippines?

• The objectives as well as the fundamental principles are of a general nature and are not intended to be used to solve a professional accountant’s ethical problems in a specific case.

  
  

• The code is divided into two parts, part A and part B.

  
  

•  Part A applies to all professional accountants unless otherwise specified.

  
  

•  Part B applies only to those professional accountants in public practice.

  
  

Which of the following is incorrect regarding integrity and objectivity?

• . Integrity implies not merely honesty but fair dealing and truthfulness.

  
  

• The principle of objectivity imposes the obligation on all professional accountants to be fair, intellectually honest and free of conflicts of interest.

  
  

• Professional accountants serve in many different capacities and should demonstrate their objectivity in varying circumstances.

  
  

• Professional accountants should neither accept nor offer any gifts or entertainment.

  
  

Professional accountants may encounter problems in identifying unethical behavior or in resolving an ethical conflict. When faced with significant ethical issues, professional accountants should do the following, except

• Follow the established policies of the employing organization to seek a resolution of such conflict.

  
  

• Review the conflict problem with the immediate superior if the organization’s policies do not resolve the ethical conflict.

  
  

• If the problem is not resolved with the immediate superior and the professional

  accountant determines to go to the next higher managerial level, the immediate superior need not be notified of the decision.

  
  

• Seek counseling and advice on a confidential basis with an independent advisor or the applicable professional accountancy body or regulatory body to obtain an understanding of possible courses of action.

  
  

Which of the following is incorrect regarding professional competence?

• Professional accountants may portray themselves as having expertise or experience they do not possess.

  
  

• Professional competence may be divided into two separate phases.

  
  

•  The attainment of professional competence requires initially a high standard of general education.

  
  

• The maintenance of professional competence requires a continuing awareness of

  development in the accountancy profession.

  
  

Which of the following is incorrect regarding confidentiality?

• Professional accountants have an obligation to respect the confidentiality of information about a client’s or employer’s affairs acquired in the course of professional services.

  
  

• The duty of confidentiality ceases after the end of the relationship between the

  professional accountant and the client or employer.

  
  

•  Confidentiality should always be observed by a professional accountant unless specific authority has been given to disclose information or there is a legal or professional duty to disclose.

  
  

• Confidentiality requires that a professional accountant acquiring information in the course of performing professional services neither uses nor appear to use that information for personal advantage or for the advantage of a third party.

  
  

 Which of the following is incorrect regarding the professional accountants’ tax practice?

• A professional accountant rendering professional tax services is entitled to put forward the best position in favor of a client, or an employer.

  
  

• Doubt may be resolved in favor of the client or the employer if there is reasonable support for the position.

  
  

•  A professional accountant may hold out to a client or an employer the assurance that the tax return prepared and the tax advice offered are beyond challenge.

  
  

• Professional accountants should ensure that the client or the employer are aware of the limitations attaching to tax advice and services so that they do not misinterpret an expression of opinion as an assertion of fact.