CA Inter Ethics and Terms of Audit Engagements — practice questions
28 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CA Inter Ethics and Terms of Audit Engagements in the app →The Code of Ethics sets out how many fundamental principles to be observed by a professional accountant?The fundamental principle requiring a member to be straightforward and honest in all professional and businessThe principle that a member should not allow bias, conflict of interest or undue influence to override professThe principle requiring a member to maintain knowledge and skill at the level needed to provide competent servThe principle that a member should respect the confidentiality of information acquired through professional reThe principle that a member should comply with relevant laws and avoid any conduct that discredits the professIndependence comprises independence of mind and independence in:The threat that a financial or other interest will inappropriately influence the auditor's judgement is the __The threat that the auditor will not appropriately evaluate the results of a previous judgement made by themseThe threat that arises when an auditor promotes a client's position to the point that objectivity is compromisThe threat arising from a long or close relationship with a client, making the auditor too sympathetic, is theThe threat that an auditor will be deterred from acting objectively by actual or perceived pressures is the __The terms of audit engagements are dealt with by Standard on Auditing (SA):The auditor records the agreed terms of the audit engagement in a/an:Confirming the existence of a financial reporting framework acceptable for the FS and management's acknowledgeMeasures that may eliminate threats or reduce them to an acceptable level are called:On a recurring audit, the auditor should assess whether circumstances require the terms of engagement to be:The approach the Code uses, requiring members to identify, evaluate and address threats, is the ___ framework:A member in practice who receives confidential client information should NOT disclose it without proper authorThe principle of professional competence and due care imposes the obligation to act diligently and in accordanAn auditor holding shares in the audit client company would most directly create a ___ threat:Where an audit firm's staff has served a client for a very long period, the firm may apply ___ as a safeguard:If the preconditions for an audit are not present, the auditor should ordinarily:Acting as an advocate for a client in resolving a dispute with a third party most directly creates a/an ___ thIndependence is specifically required for ___ engagements such as audits and reviews:Threatening to replace the auditor over a disagreement on an accounting treatment creates a/an ___ threat:The fundamental principle most directly breached if an auditor discloses a client's trade secrets to a competiAn engagement letter helps avoid misunderstandings by clarifying the objective, scope, and the respective resp