Week 2: Code of Ethics - Assignment002

A professional accountant in public practice does not need to obtain the client's permission to initiate discussion with
an existing accountant. - FALSE

A professional accountant in public practice who provides an assurance service shall be independent of the
assurance client. - TRUE

A professional accountant in public practice shall not bring the profession into disrepute when marketing professional
services. - TRUE

Contingent fees are widely used for certain types of non-assurance engagements. Thus, do not create threats to
compliance with the fundamental principles in certain circumstances. – FALSE

It is fundamental principle that a professional accountant should complied with, wherein he/she must comply with
relevant laws and regulations and avoid any action that discredits the profession.

a. Confidentiality
b. Professional Competence and Due Care
c. Professional Behavior
d. Objectivity

These are actions or other measures that may eliminate threats or reduce them to an acceptable level

a. Assertions
b. Safeguards
c. Auditing
d. Established Criteria

This is a type of threat that a professional accountant will not appropriately evaluate the results of a previous
judgment made or service performed by the professional accountant, or by another individual within the professional
accountant's firm or employing organization, on which the accountant will rely when forming a judgment as part of
providing a current service

a. Advocacy threat
b. Self-interest threat
c. Familiarity threat
d. Self-review threat

It accommodates many variations in circumstances that create threats to compliance with the fundamental principles
and can deter a professional accountant from concluding that a situation is permitted if it is not specifically prohibited.

a. Fundamental Principles
b. Conceptual Framework Approach
c. Safeguards
d. Engagement Acceptance

This is a type of threat that due to a long or close relationship with a client or employer, a professional accountant will
be too sympathetic to their interests or too accepting of their work

a. Self-interest threat
b. Self-review threat
c. Advocacy threat
d. Familiarity threat
This is a type of threat that a professional accountant will promote a client's or employer's position to the point that
the professional accountant's objectivity is compromised

a. Familiarity threat
b. Advocacy threat
c. Self-interest threat
d. Self-review threat