Question 1
Select the correct statement:
Ethics deals with? Question 2
Select the correct statement:
Question 3
Select the correct statement:
A trainee made a mistake when calculating the VAT payable for a period. SARS selected the return for verification and requested information. The trainee discovered the mistake while preparing the information that SARS requested. The trainee has a few options:
Question 4
Select the correct statements:
A. A trainee’s unethical behaviour can contribute to the closing down of an accounting firm.
B. A trainee’s unethical behaviour can lead to disciplinary action instituted by SAICA against a partner/director of an accounting firm.
C. A firm benefiting financially will not be concerned by the unethical behaviour from a trainee that led to the financial benefit.
Question 5
Select the correct statement in terms of what drives ethical choices:
A. The will to make money no matter what the consequences are.
B. The will to make the correct decision.
C. Living with the decisions you make.
D. The correct decision was made with enough information and knowledge.
Question 6
Select the unethical action:
Question 7
Select the correct action by a trainee:
A trainee made a mistake on a client's tax return.
What action does the trainee take?
Question 8
Select the correct statement:
Question 9
Select the statement that demonstrate unethical behaviour:
Question 10
Select the correct statement:
Question 11
Select the correct statements:
A. A trainee may accept an assignment should he/she have enough academic knowledge.
B. A trainee may accept an assignment as long as he/she has the appropriate experience.
C. A trainee may accept an assignment should he/she has enough money in the bank to cover legal cost for a possible legal claim.
D. A trainee may accept an assignment should he/she be independent and objective.
Question 12
Select the correct statement:
Question 13
A client threatens to report a trainee’s relationship with the secretary of the entity to the partner should the trainee not change his/her decision on an unethical matter that was identified during an audit. What should the trainee do?
Question 14
Select the correct statements:
Question 15
Select the statements which are not unethical:
A. A client completed his VAT return incorrectly. A trainee identified the error and the client has requested for a correction on the e-filing system to submit a correct return.
B. Female trainees can take one afternoon off per month as family responsibility leave to do their hair without taking leave. Male trainees complain about the practice.
C. A trainee made a double payment on a client’s VAT return and decided to keep quiet.
D. The audit team attended a wedding of a client’s financial manager at a casino and then booked into the hotel for the weekend.
E. A trainee made a double payment on a client’s VAT return and has informed the client about the mistake. The client is not happy with the double payment but agreed to leave the credit and offset it against the following period’s payment.
F. A trainee’s laptop was taken in an armed robbery, the robbers forced the trainee to give the password to them.
Question 16
2 trainees had a lash at each other on twitter regarding a work issue. Other twitter users joined the “fight” and ugly comments were made on the matter.
Does a third trainee report the matter to the senior or just stay out of it?
Question 17
Certain Laws and regulations may require that auditors disclose confidential information to authorities. Question 18
During your preparation for the board exam a trainee from another firm asks you if you can help him with an example on a specific topic. You remember that you worked on an assignment in the office and will forward the working papers from the audit file to him. Is this considered a breach of confidentiality breach? Question 19
Trainees celebrated the senior managers 21st birthday at a local pub. The event went throughout the night out and 3 trainees were arrested for inappropriate behaviour. Luckily the other trainees could flee the scene. Does this constitute unprofessional behaviour? Question 20
The firm’s policy requires all trainees to leave laptops in the safe at night. The safe door was locked, but you decided to leave your laptop underneath your desk. During the night the office was broken into, the safe door destroyed and all laptop including yours were stolen. The insurance company requires an affidavit from the partner confirming that all laptops were locked in the safe. Do you report to the partner that your laptop was not in the safe or do you leave it as nobody will know? Question 21
Select the correct answers:
A trainee compiled the financial statements for an entity. He requested information from the client and the client requested a meeting with the trainee. In the meeting the client informed the trainee that he has a cash flow shortage and that the trainee should assist him in reducing the income tax. The trainee informed the client that he is not allowed to assist a client with the request. Did an ethical dilemma arise, and should the trainee report the matter to the partner? Select the correct statements:
A. Ethical dilemma.
B. Not an ethical dilemma.
C. Report the issue to the partner.
D. Don't report the issue to the partner
Question 22
A trainee is not performing very well in the firm. The trainee frustrates you and does not have the necessary skills to perform the test of controls on the sales cycle of an audit engagement. You have the perfect opportunity to cancel the trainee’s contract and get the trainee to leave the firm (i.e. fired). You feel you will be doing the partner and firm a favour if you can manage to get the trainee fired. You delegate the test of controls of the sales cycle to the trainee and hope your plan will work to get the trainee fired. Question 23
Select the correct statement
A trainee’s cousin applied for a position at the firm and requests the trainee to speak to the partner and try and convince the partner that he will be the perfect candidate for the position. Should the trainee: Question 24
A partner assisted client “A” in selling his business for millions and they celebrated the transaction at a restaurant. The partner had a few drinks and went back to the office for an appointment with a client “B”. The partner was in a “good” mood after the transaction and told the client “B’ about the huge success he had with the transaction of client “A”. Which of the following statement/s are correct?
A. The partner advertised himself very well.
B. The partner damaged the profession’s reputation.
C. The partner acted unethically.
D. The partner did not treat information with the necessary confidentiality.
Question 25
A client phoned the partner in the firm and complained that the trainees work on the audit for a day and then “disappear” for a couple of days and then return. This appears to be an ongoing pattern. He is very upset and complains that his personnel were scheduled to assist the trainees with the audit. The office manager who is responsible for scheduling audits in January each year explained that trainees had to write supplementary exams and that is the reason that they were not available. Who is to blame for the situation? Question 26
A firm have arranged a lunch for all the trainees that were part of the audit team after the audit was completed of a client. One of the trainees has indicated that he will not be able to attend the lunch due to religious reasons. The partner is upset about the trainee’s decision and instructed the office manager to find a reason to dismiss the trainee. Select the appropriate statements. The partner:
A. Is unethical.
B. Is unprofessional.
C. Can force the trainee to attend the lunch.
D. Discriminated against the trainee.
E. Has a constitutional right to dismiss the trainee.
F. Should respect the trainee’s religion.
Question 27
Two junior female trainees can’t tolerate each other in the office. After some investigation the senior trainee finds out that the two trainees both like one of the male trainees in the office. Which is the correct action by the senior trainee? Question 28
A firm has been in the profession for 25 years and have an impeccable reputation. The firm has not adopted the latest audit approach which has become industry best practice. The firm feels that the audit approach they have been using for the last 25 years has never let them down and they do not believe the new audit approach is necessary for the firm to adopt. Is the firm acting ethically of unethically? Question 29
Select the correct statements:
A trainee forgot to complete the TSR and PSR at the end of an assessment cycle. What is the correct actions to perform?
A. Complete the TSR and PSR immediately.
B. Complete and back date the TSR and PSR.
C. Sign the PSR and TSR on the date that he has completed the documents.
D. Inform the reviewer that he as forgotten to complete the TSR & PSR.
Question 30
Trainees are busy with an audit assignment at a hospital. The trainees have selected patient files to verify the income that was accounted for in the accounting system.
Which of the following questions are inappropriate?
A. How long was the patient treated in the hospital?
B. Did the patient undergo surgery?
C. Race of the patient?
D. Did the patient complain about the hospital meals?
Question 31
A firm’s policy is to not submit any SARS returns without the client confirming that the return is correct by signing the return. A trainee has sent an email to a client requesting the client to visit the firm’s office to sign the completed VAT return for submission. The client received the email but did not visit the office to sign the VAT return. The VAT return was only signed after the due date and submitted. The client received a 10% penalty for late submission and payment and laid a complaint with the partner. The partner determined that the email that was sent did not clearly stipulate that the return had to be signed on a specific date. The partner requested to review the PSR of the trainee that had liaised with the client and saw a level 4 awarded to the trainee by the reviewer for “Communicate effectively in written format”. After further investigation the partner interviewed the reviewer and concluded that the reviewer did not properly consider the rating as the reviewer was under pressure to complete an audit. Who is to blame for the poor communication that was sent to the client? Question 32
Select the correct statement:
A trainee’s car was stolen at a mall with his laptop that was “safely” locked in the trunk. A client’s financial information was stored on the laptop and the file password protected.
Question 33
Select the correct statements:
A trainee prepared annual financial statements using the IFRS for SME framework instead of the IFRS framework. The trainee did not follow the company policy in determining which framework should be applied.
A. Due care was not taken with the assessment.
B. Not following procedures is unethical.
C. Trainees make mistakes. A mistake was made so move on.
D. The mistake could have been prevented had the trainee adhered to the office policy.
Question 34
Pre-engagement activities were not performed and a firm has accepted the appointment as auditor of an entity. A trainee is in the process of auditing the financial statements when he notices that the client is adjusting the VAT reports to pay less VAT. The trainee informs the partner of the tax fraud. The ethical thing to do is: Question 35
Select the correct statements:
A trainee has learned how to overwrite the materiality calculation in the auditing software. The trainee has increased the materiality figure to save some time as fewer tests will be necessary to be conducted.
Question 36
Select the correct statements:
The annual audit on a client was conducted and the partner concludes that there is uncertainty if the entity is still a going concern. The client begs the partner to not mention the going concern risk in the financial statements. The banks will withdraw the overdraft and shareholders their financial support. The partner decides that he will not disclose the going concern risk in the financial statements as a lot of people will lose their jobs.
Question 37
Select the correct options:
A client’s financial statements were compiled, and the tax calculation needs to be prepared. A trainee discovers that the client has allocated school fees for his children under advertising and marketing. The trainee has a few options.
A. Do the tax calculation, claim the school fees as an expense and hope for the best.
B. Discuss the school fees with the client and inform him that the school fees can’t be claimed as an expense.
C. Informs the client that additional taxes will be raised by SARS should they become aware of school fees that were claimed.
D. Inform the partner that school fees, a non-deductible expense, was allocated as an expense and the client refuses that the expense be added back on the tax return.
Question 38
For the scenario below select the correct statement/s:
In situations where there are circumstances, laws or regulations which prevent a professional accountant from complying with certain parts of the Code of Professional Conduct(COPC). In such circumstances:
Question 39
Select the correct statements:
A professional accountant might encounter unusual circumstances in which the professional accountant believes that the result of applying a specific requirement of the Code would be disproportionate or might not be in the public interest. In those circumstances:
A. The professional accountant must always apply the rules of the COPC.
B. The professional accountant must use his/her own judgment in deciding whether to apply the rules of the COPC.
C. The professional accountant is encouraged to consult with a professional or regulatory body.
Question 40
To demonstrate integrity, select the most correct answer: You are falling behind significantly on the deadline for your work assignment and your senior asks you the status of your work completed. You say:
Question 41
Select the correct statements:
Select the item the SAICA’s COPC is NOT based on.
Question 42
At times fundamental principles from the COPC may conflict with each other. If this occurs, you may consider consulting anonymously with.
A. Others within the firm or employing organisation.
B. Those charged with governance.
C. A professional body.
D. A regulatory body.
E. Legal counsel.
F. Your family members.
Question 43
Select the most suitable word to match with the following statement:
Do what is right even if no one is watching.
Question 44
Select the most suitable word to match with the following statement:
Continuous professional development.
Question 45
Select the most suitable word to match with the following statement:
Don't be influenced by personal feelings.
