ETHICS

1. Amelia is an accountant for LGH Co, a large multinational organisation. She has
recently been accused of theft from the company. She has argued that the theft
was justified as she needed the money to care for her mother, who is seriously ill.
What approach to ethics has Amelia adopted?
a) Pluralist
b) Utilitarian
c) Absolutist
d) Relativist
2. A profession must have an ethical code to which it requires compliance. Is this
statement TRUE or FALSE?
a) True
b) False
3. ACCA members are required to comply with five Fundamental Principles. Which
of the following contains three of these principles?
a) Integrity, Objectivity, Honesty
b) Professional competence and due care, Professional behaviour,
Confidentiality
c) Social responsibility, Independence, Scepticism
d) Courtesy, Reliability, Responsibility
4. Are the following statements true or false?
True false
 All ACCA members must comply with the Fundamental
Principles, whether or not they are in practice.
 Professionals owe an obligation to society as well as a duty to
their client.
5.Objectivity means that accountants must not be associated with any false or
misleading statements. Is this statement TRUE or FALSE?
a) True
b) False
6. Jack is an employee in BBB Co. He has been offered a bribe by an existing
supplier to continue buying a key component used in BBB’s manufacturing
process from them, in spite of a new rival company offering the same component
at a significantly lower price. Which of the following statements regarding Jack’s
decision is correct?
a) If Jack is a egoist, he will most likely accept the bribe
b) If Jack is a relativist, he would refuse the bribe as bribery is always wrong
c) If Jack is a utilitarian, he would reject the bribe as it does not benefit all
stakeholders
d) If Jack is an absolutist, his decision would depend on the circumstances.

7. Which of the following would be seen as a difference between a profession and

an occupation?
a) An occupation is governed by a professional body
b) Members of a profession must comply with relevant legislation
c) To be classified as an occupation, members must follow an ethical code
d) Members of a profession must go through a process of certification

8.Mia has uncovered fraudulent activity within the company she works for. Who
should she alert about this matter first?
a) Her professional accountancy body
b) The company’s major shareholders
c) Her company’s Compliance Officer
d) The relevant authorities
9. Noor is an ACCA member. Last year one of her clients, Aron, asked her to value
a business that he wished to purchase. She did so and informed Aron that the
business was competitively priced. Aron subsequently bought the business for its
full asking price of several million pounds. This year, Aron has become concerned
that the business has been underperforming and has asked Noor to reassess its
performance and long‐term prospects.
Which type of ethical threat is Noor facing?
a) Self‐interest
b) Self‐review
c) Advocacy
d) Intimidation

10. Which of the following are NOT safeguards that the ACCA and other
professional bodies put in place to attempt to eliminate ethical threats?
a) Ethics training
b) Internal complaints procedures
c) Creation of corporate governance regulations
d) Professional monitoring and disciplinary procedures

11. Lorenzo is facing an ethical dilemma. When deciding what his course of
action should be, he is concerned with making sure that the outcome of his
decision will benefit the greatest number of people. Which approach to ethical
decision‐making is Lorenzo following?
a) Egoist
b) Utilitarian
c) Pluralist
d) Individualist
12.Which of the following is a value that organization try to encourage within
their corporate culture in order to encourage staff to act ethically?
a) Empowerment
b) Integrity
c) Satisfaction
d) Objectivity
13.In order to encourage ethical behaviour, BHG Co has told all of its employees
that they must treat all employees and stakeholders with respect, regardless of
their gender, age,ethnicity or sexuality. Which key value is BHG asking its staff to
consider?
a) Empowerment
b) Trust
c) Respect
d) Honesty
14. Deontological ethics suggest that the consequences of an action should be
ignored. Is this statement TRUE or FALSE?
a) True
b) False

15.Which of the following best defines a corporate code of ethics?

a) Policy statements of a company to define moral standards for its
employees
b) Behavioral principles laid down by a professional body
c) Detailed procedures laid down by a company for its staff
d) Moral standards that apply to all companies
16.Why should ACCA members following the Code of Ethics and Conduct?
a. Failure to do so could lead to disciplinary action
b. Failure to do so could lead to prosecution
c. Failure to do so could damage the reputation of the accounting
profession
d. Failure to do so could lead to poor quality work

1,3 and 4 only

2,3 and 4 only
1 and 2 only
1,2,3 and 4

17. Which of the following are ways in which an organization could recognize
ethical issues?
1) Appoint ethical champions
2) Embrace ethics in its value statements
3) Include ethical dimensions in human resource management
4) Include ethical in its mission statement
a) 1,2 and 4 only
b) 1 and 3 only
c) 1,2,3 and 4
d) 2 and 4 only

18.Which of the following directly concerned with the concept of ethics?

1The study of morality and philosophy
2The study of choice and action
3The study of the environment and sustainability

a) 1 and 2 only
b) 2 and 3 only
c) 1,2 and 3
d) 1 and 3 only
19.Are the following statements true or false?
True False
• Professional always gets paid high salaries
• Professional always operate within ethical rule

20. Which of the following bodies is responsible for the issue of international
guidance for the accountancy profession?
a) Standards Advisory Council (SAC)
b) International Accounting Standards Committee Foundation (IASCF)
c) International Federation of Accountants (IFAC)
d) International Accounting standards Board (IASB)
21. A Co. and B Co. are competitors in the oil industry who, between them, have a
90% market share. The chief executives of the two companies meet at a
conference and have a private meeting at which they make several agreements.
Which of the following agreement represents an unethical agreement?
a) An agreement to set prices at a particular level
b) An agreement to commence research into environmental issues
c) An agreement to transport oil across a shared pipeline
d) An agreement to develop join technology for future use
22. Which terms describes the study of moral principles used to determine right
from wrong in dealings of organization with others
a) Corporate Governance
b) Transactional Analysis
c) Business Altruism
d) Business Ethics
 Solution
1. D
2. A
3. B
4. True True
5. B
6. A
7. D
8. C
9. B
10. B
11. B
12. A
13. C
14. A
15. A
16. A
17. C
18.A
19. FALSE FALSE
20. C
21. A
22 D