Conduct in the CPA Guidelines for Ethical Behaviour.
Answer: True False
109) Having the requisite knowledge to perform certain tasks is an example of Enabling Competencies in the CPA
Guidelines for Ethical Behaviour.
Answer: True False
12
110) No ownership interest in an audit client is an example of Adherence to Rules of Professional Conduct in the
CPA Guidelines for Ethical Behaviour.
Answer: True False
111) Professional Accountants in Canada are represented by the Certified Professional Accountants of Canada (CPA
Canada) in addition to provincial accounting associations.
Answer: True False
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
112) Which of the following organizations is the association of professional accountants in Canada?
A) The Institute of Chartered Accountants B) The Society of Management Accountants
C) The Chartered Professional Accountants D) The Certified General Accountants
Answer: C
113) To resolve ethical dilemmas, management accountants should FIRST
A) follow their company's established policies for Reporting unethical behaviour.
B) call the Society of Management Accountants "Ethics Hotline."
C) consult an attorney.
D) discuss the unethical situation with their immediate supervisor.
Answer: A
114) Having the requisite knowledge to perform certain tasks is an example of ________ in the CPA Guidelines for
Ethical Behaviour.
A) Adherence to Rules of Professional Conduct B) Enabling Competencies
C) Assessing the Situation D) Integrative Analysis
Answer: B
115) No ownership interest in an audit client is an example of ________ in the CPA Guidelines for Ethical Behaviour.
A) Adherence to Rules of Professional Conduct B) Enabling Competencies
C) Assessing the Situation D) Integrative Analysis
Answer: A
116) Planning and identifying possible conflicts of interest is an example of ________ in the CPA Guidelines for
Ethical Behaviour.
A) Adherence to Rules of Professional Conduct B) Enabling Competencies
C) Assessing the Situation D) Integrative Analysis
Answer: C
117) Scrutinizing ethical constraints to determine the best way forward is an example of ________ in the CPA
Guidelines for Ethical Behaviour.
A) Adherence to Rules of Professional Conduct B) Enabling Competencies
C) Assessing the Situation D) Integrative Analysis
Answer: D
118) Recognition of ethical issues that may arise in work to be performed is evidence of ________ in the CPA
Guidelines for Ethical Behaviour.
A) Adherence to Rules of Professional Conduct B) Enabling Competencies
C) Assessing the Situation D) Integrative Analysis
Answer: C
13
119) Anticipation of issues and identification of possible alternatives is evidence of ________ in the CPA Guidelines
for Ethical Behaviour.
A) Adherence to Rules of Professional Conduct B) Enabling Competencies
C) Assessing the Situation D) Integrative Analysis
Answer: D
120) Compilation of allowed and disallowed behaviours is evidence of ________ in the CPA Guidelines for Ethical
Behaviour.
A) Adherence to Rules of Professional Conduct B) Enabling Competencies
C) Conclude, Advise and Communicate D) Integrative Analysis
Answer: A
121) A clear and transparent decision based on the ethical analysis is evidence of ________ in the CPA Guidelines for
Ethical Behaviour.
A) Adherence to Rules of Professional Conduct B) Conclude, Advise and Communicate
C) Assessing the Situation D) Integrative Analysis
Answer: B
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
122) What process should a management accountant follow to resolve an ethical dilemma?
Answer: Follow the company's established policies for reporting unethical behaviour.
Consider discussing the issues with her manager, or if the issue is with her manager, with the supervisor in the
next managerial level. If the issue is with the CEO - notify the audit committee or board of directors.
Discuss the situation with an objective advisor.
Consult an attorney regarding regarding legal obligations and rights.
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
123) The Sarbanes-Oxley Act was designed to hold corporations accountable for internal control and financial
reporting functions.
Answer: True False
124) The Sarbanes-Oxley Act has significantly impacted the responsibility for financial reporting by publicly traded
corporations.
Answer: True False
125) The Sarbanes-Oxley Act does not allow public accounting firms to provide certain non- audit services to clients
during the same period they are providing audit services.