ACC 325

A. Keep such assets separately from personal or firm assets B. Use such assets only for the purpose for which they are intended C. At times be ready to account for those assets and any income, dividends, or gains generated, to any persons entitled to such accounting D. Comply with all relevant laws and regulations relevant to the holding of and accounting for such assets

A professional accountant in public practice entrusted with money (or other assets) belonging to others shall do the following except:

A. Self-interest threat B. Intimidation threat C. Advocacy threat D. Self-review threat

Ana is a member of the assurance team assigned to perform an assurance engagement for ABC Company. Ana has recently resigned from ABC Company where she was employed in a position to exert direct and significant influence over the subject matter of the engagement. This is an example of a circumstance that may create what type of threat?

A. Insider Trading B. Privacy Issues C. Intellectual Property Rights D. Extortion

Aries, a tattoo artist, filed a case against White Lemon Films for using his tattoo designs in their new released movie without his consent. This is a violation of:

A. Self-interest threat B. Familiarity threat C. Advocacy threat D. Self-review threat

Ben has been accepting gifts such as cars and the latest gadgets from XYZ Company, which is a client for which he was assigned to perform an assurance engagement for. This is an example of a circumstance that may create what type of threat?

A. Ethical Dilemma B. Omission Lying C. Privacy Issue D. Corporate Intelligence

Cara did not mention to her boss that although the awarded bidder offered the lowest price, they were known to be delayed in delivering services. This is an example of

A. Insufficient time for properly performing or completing the relevant duties B. Incomplete, restricted or otherwise inadequate information for performing the duties properly C. Sufficient experience, training and/or education D. Inadequate resources for the proper performance of the duties

Circumstances that create a threat to a professional accountant in business performing duties with the appropriate degree of professional competence and due care include having

A. Duties of Stakeholders B. Disclosure and Transparency C. Board's Governance Responsibilities D. Responsibilities of Stakeholders

Code of ethics of corporate governance for publicly listed companies can be divided into 5 main sections, except:

A. specific and pervasive boundaries for behavior that should not be violated. B. often based on organizational or industry best practices. C. as behavior or decisions made within a group's values. D. none of the above.

Ethics is defined as:

A. Participating in incentive compensation arrangements offered by the employing organization B. Appropriate personal use of corporate assets C. Concern over employment security D. Commercial pressure from outside the employing organization

Examples of circumstances that may create self-interest threats for a professional accountant in business includes the following except:

A. minimizes biases in making decisions. B. is to be whole, sound, and in a perfect condition. C. exist when a person will report to two or more different individuals or organization whose needs are at odds with each other. D. is when the company intentionally not disclose the hidden defect to their customer.

Fairness

A. It helps build a strong competitive position shown to positively affect business performance and product innovation B. It demands increase for socially responsible investing C. It helps the environment D. Because it helps dictate morality in their employees

How does business ethics contribute to the company profits?

I only B. II only C. Both I and II D. Neither I or II ​

I. A professional accountant in business shall neither manipulate information nor use confidential information for personal gain II. A professional accountant in business shall not offer an inducement to improperly influence professional judgment of a third party ​

A. Ethics B. Morals C. Principles D. Values

Integrity and honesty is an example of

A. Good Governance B. Morality C. Business Ethics D. Ethical Dilemma

It comprises the organizational principles, values and norms that may originate from individuals, organizational statement or legal system to guide the individual or group behavior in the business.

A. Extortion B. Social Engineering C. Facilitation Payment D. Subornation ​

It is designed to entice a person in authority to commit an illegal act on behalf of the one who's offering the bribe.

A. Enterprise Risk Management B. Internal Control C. COSO D. Internal Audit

It is designed to provide reasonable assurance regarding the achievement of objectives in the operations effectiveness and efficiency, reliable financial reporting and compliance with laws and regulations

A. Control Environment B. Risk Assessment C. Monitoring D. Control Activities

It is the establishment of policies and procedures necessary to ensure that identified risk responses are carried out.

A. Risk Management B. Enterprise Risk Management C. Risk Appetite D. Risk Avoidance

It refers to the amount of risk that is acceptable to the enterprise.

A. Good ethics B. Intimidating behavior C. Not using time wisely D. Corporate Intelligence

Jenia has always been in an unproductive meeting most of the time, as they were just chatting about politics and company governance. This is an example of

A. Familiarity Threat B. Self-interest Threat C. Intimidation Threat D. Advocacy Threat

Kimmy Chiu is a member of the audit team assigned to audit ABS-GMA Corp. Inc. Kimmy is also currently in employment negotiations with ABS-GMA Corp, Inc. This is an example of a circumstance which creates which type of threat?

A. Professional Behavior B. Integrity C. Objectivity D. Confidentiality

Nondisclosure of information gathered during the conduct of professional or business processes is a principle of

A. Ignoring interests of employees B. focusing on investor's loyalty C. not obtaining customer's feedback D. focusing on customer satisfaction

Placing customer's interest first means

A. Possessing or obtaining experience with relevant regulatory or reporting requirements B. Using experts where necessary C. Agreeing on a realistic time frame for the performance of the engagement D. Acquiring knowledge of irrelevant industries or subject matters

Safeguards for professional accountant in public practice includes the following except.

A. Familiarity Threat B. Self-interest Threat C. Self-review Threat D. Advocacy Threat

Sedillo, Lamanilao and Lequido and Co, Accounting and Auditing Firm, recently issued an assurance report on the effectiveness of the financial system operations which they also designed and implemented the previous year. This is an example of a circumstance which creates which type of threat?

A. Three B. Two C. Five D. Four

The Board should conduct an annual self-assessment of its performance, including the performance of the Chairman, individual members and committees. Every ____ years, the assessment should be supported by an external facilitator.

A. Chairman B. President C. Corporation D. Stakeholders

The Corporate secretary is responsible to whom:

A. Principles B. Business Ethics C. Ethics D. Morals ​

The concept of "separation of church and of state" is an example of:

A. Rotating senior assurance team personnel B. Discussing ethical issues with those charged with governance of the client C. A disciplinary mechanism to promote compliance with policies and procedures D. Involving another firm to perform or re-perform part of the engagement

The following are engagement-specific safeguards in the work environment, except.

A. Policies and procedures to implement and monitor quality control of engagements B. Documented internal policies and procedures requiring compliance with the fundamental principles C. Using different partners and engagement teams with separate reporting lines for the provision of non-assurance services to an assurance client D. Having a professional accountant who was not a member of the assurance team review the assurance work performed or otherwise advise as necessary

The following are firm-wide safeguards in the work environment, except.

A. Salary Increases B. Loyal investors C. Morality of employees D. Featured in the daily news

The following are not benefits of establishing a business ethics, except:

A. A member of the assurance team having a direct financial interest in the assurance client B. A firm having undue dependence on total fees from a client. C. A firm being concerned about the possibility of losing a significant client D. The firm performing a service for an assurance client that directly affects the subject matter information of the assurance engagement.

The following creates self-interest threats for a professional accountant in public practice except:

A. Business ethics is more than an extension of an individual's own personal ethics B. An individual's personal moral values are not the only factor in the ethical decision-making process C. Just being a good person and sound personal values may not be sufficient to handle the ethical issues that arise in a business organization. D. Businesses dictate a person's moral.

The following statements are true, except:

A. Establish a retaliation policy B. Reporting procedure should be established C. Define sexual harassment D. Training programs

The following steps may be enforced in a company to protect employees from sexual harassment, except:

A. The accountant should not accept any gifts regardless if it is significant or insignificant. B. Accepting gifts creates threats to compliance with fundamental principles. C. Self-review threat to objectivity may be created if a gift from a client is accepted. D. There are no safeguards in accepting gifts, hence should not be accepted.

The professional accountant in public practice received gifts from client who happens to be an immediate family of one of the members of the assurance team. Which of the following statements related to the scenario is correct.

A. Risk Tolerance B. Inherent Risk C. Residual Risk D. Risk Acceptance

The risk that remains even after employing controls or countermeasures

A. Principles B. Business Ethics C. Ethics D. Morals

This is a set of values of right or wrong that may differ from one person to another.

A. Cyber bullying B. Hacking C. Social Engineering D. Eavesdropping

This is a type of emerging ethical issue, wherein a person tries his/her way to break into a computer network to steal an information.

A. Marketing Fraud B. Consumer Fraud C. Accounting Fraud D. Labelling Issue ​

This is a type of fraud wherein the client/ customer attempts to deceive a business for their own gain.

A. Honesty B. Availability C. Reciprocity D. Ethics

This refers to the interchanged giving and receiving in social relationships

A. Confidentiality B. Professional Competence and Due Care C. Excellence D. Integrity

This refers to the requirement to maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional services based on current developments in practice, legislation and techniques and act diligently and following applicable technical and professional standards

A. Good governance B. Ethical Issues C. Ethical Dilemma D. Business Ethics

To decide whether to lay-off employees or close the business due to pandemic is an example of

A. Chief Executive Officer (CEO) B. Chief Information Systems Officer (CISO) C. Chief Audit Executive (CAE) D. Chief Risk Officer (CRO)

Which of the following is a designated senior officer responsible in administering and monitoring the overall enterprise ERM function?

A. Adultery B. Misuse of Company Time and Resources C. Employee theft D. Corruption

Which of the following is not generally considered a business ethics issue? ​

A. I only B. II only C. Both I and II D. Neither I or II

Which statements are correct I. Members of the Board are duty-bound to apply high ethical standards, taking into account the interests of all stakeholders II. The Board should ensure that its independent directors possess the necessary qualifications and none of the disqualifications for an independent director to hold the position

A. I only B. II only C. Both I and II D. Neither I or II

Which statements are correct I. The Board should establish board committees that focus on specific board functions to aid in the optimal performance of its roles and responsibilities II. The Audit Committee is responsible for overseeing the senior management in establishing and maintaining an adequate, effective and efficient internal control framework

A. I only B. II only C. Both I and II D. Neither I or II

Which statements are correct I. The board should endeavor to exercise an objective and independent judgment on all corporate affairs. II. The Board should ensure that its independent directors possess the necessary qualifications and none of the disqualifications for an independent director to hold the position ​

A. I only B. II only C. Both I and II D. Neither I or II

Which statements are correct I. The company should ensure that the material and reportable non-financial and sustainability issues are disclosed. II. The company should maintain a comprehensive and cost-efficient communication channel for disseminating relevant information. This channel is crucial for informed decision-making by investors, stakeholders and other interested users ​

A. I only B. II only C. Both I and II D. Neither I or II

Which statements are correct I. A professional accountant in public practice is not allowed to receive a referral fee or commission relating to a client. II. A professional accountant in public practice may also pay a referral fee to obtain a client.

I only B. II only C. Both I and II D. Neither I or II

Which statements are correct I. Independence of mind - the state of mind that permits the expression of a conclusion without being affected by influences that compromise professional judgment, thereby allowing an individual to act with integrity, and exercise objectivity and professional skepticism II. Independence in appearance - the avoidance of facts and circumstances that are so significant that a reasonable and informed third party would be likely to conclude, weighing all the specific facts and circumstances, that a firm's, or a member of the audit team's, integrity, objectivity or professional skepticism has been compromised. ​

A. I only B. II only C. Both I and II D. Neither I or II

Which statements are correct I. The company should establish standards for the appropriate selection of an external auditor, and exercise effective oversight of the same to strengthen the external auditor's independence and enhance audit quality II. The company's corporate governance policies, programs and procedures should be contained in its Manual on Corporate Governance, which should be submitted to the regulators and posted on the company's website ​