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Ethics

Do you have the ethics competencies and knowledge that a professional accountant will need in the future? Take our test to find out.

  1. It is not the primary obligation of a tax adviser to use any legal means to minimise the personal, or corporate, tax liability of their clients.

  2. The purpose of corporate financial reporting is much broader than providing an accurate and faithful record of financial transactions which the organisation has undertaken with third parties, including the owners.

  3. Using the traditional weighted average cost of capital of a company as a ‘hurdle rate’ to evaluate investments, can lead to the destruction in value of some sources of capital.

  4. From an economic cost-benefit analysis perspective, adopting a sound corporate governance structure puts a burden of cost and obligation upon a company which can always be justified.

  5. The formal use of appropriate management accounting and performance management techniques should lead to more economically and environmentally sustainable business decisions.

  6. The growth of computer connectivity, with ever wider global access to larger and more diverse data sets, offers huge opportunities, but also exposes businesses to much greater threats.

  7. As agents, an organisation’s directors should manage risk in such a way which achieves only a rate of return which matches the stakeholders’ appetite for risk.

  8. An auditor should always be sceptical of mind when planning and undertaking an audit. They should therefore initially presume a considerable degree of doubt regarding their audit client.