These are ACCA F1 (BT/FBT) Business and Technology MCQs and OTQs for Part-F of the Syllabus “Professional ethics in accounting and business”.

These MCQs and OTQs are designed in a way that students could better understand the exam format and get used to practice online. This approach will reduce exam stress and enable students to prepare better.

We request the students, Not to solve the MCQs and OTQs until they have finished the entire F1 (BT/FBT) Business and Technology Part-F “Professional ethics in accounting and business”.

All the questions are compulsory, so do not skip any.

INFORMATION ABOUT THESE MCQs Test

Course: ACCA
Fundamental Level: Knowledge, FIA
Subject: Business And Technology
Paper: F1 – BT
Chapter: 25 – 26
Chapter Number: 26 of the Practice and Exam Kit
Syllabus Area: F – Professional ethics in accounting and business
Questions Type: MCQs and OTQs
Exam Section: Section B

Number of the Questions

These MCQs Test consist of 21 Questions that covers the Part F of the Syllabus; Professional ethics in accounting and business of ACCA F1 (BT) Business and Technology Module.

Time

These MCQs and OTQs has a time deadline. Students have to finish the Test within the given time period so Students can get used to finishing the Exam on time.

As in ACCA Exam, there are 1.8 minutes per mark. So each 2 marks question have 3.6 minutes to complete.

This Test includes some MCQs that worth 2 marks and some worth 1 Mark. We therefore giving an average time to complete the Test.

This Test has 21 questions, so Students have total 42 minutes to complete the Test.

Result

Students can see their result at the end of the test. Further, the correct and wrong questions. Moreover, the explanation of wrong questions.

Types of Questions

MCQs: Choose one from the given options.
Multiple choice: Choose all those answers which seems to you correct/ or incorrect, as per the requirement of the question. Keep your eye on the wording “(select all those which are correct/ or incorrect)“.
Drop down: Select from the list provided.
Type numbers: Type your answer in numbers as per the requirement of the question.

Keywords

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F1 - Chapter 26 - Part F Test - MCQs and MTQs

1 / 21

JKL Co is a small firm of external auditors with a small number of clients. Almost 20% of its revenue comes from one client. The client still has not settled the invoice from the previous year's audit in the hope that this will strengthen their position in negotiating a lower price for this year's audit.

Which TWO of the following conflicts of interest exist in this situation?

Self-review threat

Self-interest threat

Familiarity threat

Advocacy threat

Intimidation threat

2 / 21

YRT Co is a firm of external auditors which has Company W, Company X, Company Y and Company Z among its audit clients.

Scenario

Company W is currently being sued by one of its suppliers. YRT Co has offered legal services and will defend them in this legal case.

The audit partner of Company X has been a member of the external audit team for the past 15 years and has good relationships with the senior management of Company X.

The financial controller of Company Y is the daughter of the audit manager from YRT Co.

Company Z does not have an experienced financial department and so YRT Co helps to prepare the financial statements of Company Z in advance of the external audit.

The following are types of conflicts of interest:

Familiarity threat
Advocacy threat
Self-review threat
Self-interest threat

Requirement: Match the types of conflict of interest above to the companies below.

(i) Company W
(ii) Company X
(iii) Company Y
(iv) Company Z

QUESTION

Which conflict of interest matches with Company W?

Self-review threat

Familiarity threat

Advocacy threat

Self-interest threat

3 / 21

Which of the following statements are FALSE?

There is a public expectation that accountants will act ethically.

When dealing with ethical dilemmas ACCA students must follow ACCA's code of conduct.

Professional ethics should not be followed at the expense of contractual obligations.

A prospective audit firm quoting a significantly lower fee for assurance work than the current auditors charge does not raise a threat of a conflict of interest.

4 / 21

Corporate codes of ethics are published by organisations in order to communicate values to stakeholders.

Why the stakeholder 'Customer' might be interested in what an organisation does?

This stakeholder may need reassurance that the organisation will act as a 'good citizen'

Standards of behaviour expected of this stakeholder should be communicated to them

Decisions of this stakeholder may be influenced by ethical considerations

5 / 21

Ethics are a set of _____________ that guide behaviour.

Which of the following correctly fills the blank?

Professional regulations

Moral principles

Legal guidelines

6 / 21

YRT Co is a firm of external auditors which has Company W, Company X, Company Y and Company Z among its audit clients.

Scenario

Company W is currently being sued by one of its suppliers. YRT Co has offered legal services and will defend them in this legal case.

The audit partner of Company X has been a member of the external audit team for the past 15 years and has good relationships with the senior management of Company X.

The financial controller of Company Y is the daughter of the audit manager from YRT Co.

Company Z does not have an experienced financial department and so YRT Co helps to prepare the financial statements of Company Z in advance of the external audit.

The following are types of conflicts of interest:

Familiarity threat
Advocacy threat
Self-review threat
Self-interest threat

Requirement: Match the types of conflict of interest above to the companies below.

(i) Company W
(ii) Company X
(iii) Company Y
(iv) Company Z

QUESTION

Which conflict of interest matches with Company Y?

Familiarity threat

Self-review threat

Advocacy threat

Self-interest threat

7 / 21

Which of the following would give rise to a threat of intimidation?

Litigation against the external auditor by an audit client

An audit partner is on the board of a client

Provision of taxation services as well as audit services

8 / 21

Which TWO of the following are criticisms of absolutism?

Whatever source is used, human interpretation will lead to different views

It is based on a fundamental contradiction

It leads to a philosophy of anything goes

It takes no account of evolving norms

It makes short-term desires equivalent to longer-term interests

9 / 21

Which of the following statements about ethics are FALSE.

Virtue ethics suggests that managers should incorporate values such as fairness and loyalty into their decision-making

An accountant's ethical behaviour serves to protect the public interest

Bribery can sometimes be legal

The teleological view of ethics is based on duty

10 / 21

Which of the following statements are TRUE?

A prospective audit firm quoting a significantly lower fee for assurance work than the current auditors charge does not raise a threat of a conflict of interest.

When dealing with ethical dilemmas ACCA students must follow ACCA's code of conduct.

Professional ethics should not be followed at the expense of contractual obligations.

There is a public expectation that accountants will act ethically.

11 / 21

Which of the following statements about social responsibility are TRUE?

Social responsibility action is likely to have an adverse effect on shareholders' interests in the short term

Only governments are concerned with social responsibility

Guaranteeing employees a minimum 'living wage' is an example of social responsibility

An environmental audit involves assessing the opportunities and threats to an organisation

12 / 21

Corporate codes of ethics are published by organisations in order to communicate values to stakeholders.

Why the stakeholder 'Local communities' might be interested in what an organisation does?

This stakeholder may need reassurance that the organisation will act as a 'good citizen'

Standards of behaviour expected of this stakeholder should be communicated to them

Decisions of this stakeholder may be influenced by ethical considerations

13 / 21

YRT Co is a firm of external auditors which has Company W, Company X, Company Y and Company Z among its audit clients.

Scenario

Company W is currently being sued by one of its suppliers. YRT Co has offered legal services and will defend them in this legal case.

The audit partner of Company X has been a member of the external audit team for the past 15 years and has good relationships with the senior management of Company X.

The financial controller of Company Y is the daughter of the audit manager from YRT Co.

Company Z does not have an experienced financial department and so YRT Co helps to prepare the financial statements of Company Z in advance of the external audit.

The following are types of conflicts of interest:

Familiarity threat
Advocacy threat
Self-review threat
Self-interest threat

Requirement: Match the types of conflict of interest above to the companies below.

(i) Company W
(ii) Company X
(iii) Company Y
(iv) Company Z

QUESTION

Which conflict of interest matches with Company W?

Advocacy threat

Familiarity threat

Self-review threat

Self-interest threat

14 / 21

Corporate codes of ethics are published by organisations in order to communicate values to stakeholders.

Why the stakeholder 'Employees' might be interested in what an organisation does?

Decisions of this stakeholder may be influenced by ethical considerations

Standards of behaviour expected of this stakeholder should be communicated to them

This stakeholder may need reassurance that the organisation will act as a 'good citizen'

15 / 21

The Chairman's report of Fairmind states that "We are a competitive business, yet we are fair and open. Obtaining information about competitors by deception is strongly condemned. Making disparaging comments about competitors should be avoided.'

Which of the following safeguards would be most effective in ensuring that these standards are maintained?

External review of Fairmind's ethics policy

Effective education and training for all staff

Rewarding employees who report on colleagues' ethical breaches

A system of fines for employees who are in breach of the code

16 / 21

Which of the following statements about social responsibility are FALSE?

Guaranteeing employees a minimum 'living wage' is an example of social responsibility

An environmental audit involves assessing the opportunities and threats to an organisation

Only governments are concerned with social responsibility

Social responsibility action is likely to have an adverse effect on shareholders' interests in the short term

17 / 21

YRT Co is a firm of external auditors which has Company W, Company X, Company Y and Company Z among its audit clients.

Scenario

Company W is currently being sued by one of its suppliers. YRT Co has offered legal services and will defend them in this legal case.

The audit partner of Company X has been a member of the external audit team for the past 15 years and has good relationships with the senior management of Company X.

The financial controller of Company Y is the daughter of the audit manager from YRT Co.

Company Z does not have an experienced financial department and so YRT Co helps to prepare the financial statements of Company Z in advance of the external audit.

The following are types of conflicts of interest:

Familiarity threat
Advocacy threat
Self-review threat
Self-interest threat

Requirement: Match the types of conflict of interest above to the companies below.

(i) Company W
(ii) Company X
(iii) Company Y
(iv) Company Z

QUESTION

Which conflict of interest matches with Company X?

Familiarity threat

Self-interest threat

Self-review threat

Advocacy threat

18 / 21

Which FOUR of the followings are personal qualities expected of an accountant?

Scepticism

Respect

Social responsibility

Reliability

Accountability

Independence

Timeliness

Courtesy

19 / 21

Which TWO of the following are criticisms of relativism?

A consensus may not be possible

It is based on a fundamental contradiction

It takes no account of evolving norms

It makes short-term desires equivalent to longer-term interests

It leads to a philosophy of anything goes

20 / 21

Which of the following statements about ethics are TRUE.

The teleological view of ethics is based on duty

Bribery can sometimes be legal

Virtue ethics suggests that managers should incorporate values such as fairness and loyalty into their decision-making

An accountant's ethical behaviour serves to protect the public interest

21 / 21

Which TWO of the following are fundamental principles from ACCA's Code of Ethics?

Objectivity

Leadership

Integrity

Truthfulness

Your score is

F1 (BT) – Chapter 26 – PART F – MCQ’s and OTQs – ACCA