1.3 Exploring the ethical responsibilities of accountants

• Accountants demonstrate integrity by being honest, transparent, and truthful
• What compromises an accountant's independence?

  Accepting gifts or favors
• What are accounting codes of ethics designed to outline?

  Ethical responsibilities
• What is the unethical behavior associated with objectivity?

  Allowing personal biases
• Breaches of confidentiality can lead to legal and reputational damage.


  True
• What is the consequence of failing to safeguard client financial data?

  Legal action
• Allowing personal interests to influence decision-making violates objectivity.


  True
• What is the ethical responsibility of integrity in accounting?

  Honesty, transparency, truthfulness
• Independence in accounting means avoiding undue influence when making decisions.

  True
• Accounting codes of ethics outline the ethical responsibilities of accountants
• What does objectivity require accountants to avoid?

  Conflicts of interest
• Confidentiality in accounting protects sensitive financial information from unauthorized disclosure.

  True
• What are the potential consequences of breaching confidentiality in accounting?

  Legal and reputational damage
• Allowing personal interests to influence professional judgment violates the principle of objectivity
• Match the ethical principle with its unethical behavior:

  Objectivity ↔️ Personal interests cloud judgment

  Independence ↔️ Accepting compromising favors
• Compliance in accounting involves adhering to laws, regulations, and industry standards.


  True
• Steps to resolve the ethical dilemma in the case study:

  1️⃣ Uphold independence

  2️⃣ Adhere to code of ethics

  3️⃣ Report unethical request
• What are the key principles of ethical responsibilities for accountants?

  Integrity, objectivity, independence
• Allowing personal biases to influence professional judgment violates objectivity.

  True
• Upholding ethical standards helps accountants fulfill their duty to serve the public interest
• Falsifying financial records is a breach of integrity.


  True
• Independence requires accountants to make decisions free from undue influence
• Objectivity requires accountants to remain unbiased and impartial
• What is the consequence of accepting gifts that compromise independence?

  Loss of professional license
• Accountants must remain impartial and avoid conflicts of interest
• Match the ethical responsibility with its unethical behavior:

  Integrity ↔️ Falsifying records

  Objectivity ↔️ Allowing personal biases

  Independence ↔️ Accepting gifts
• Why is upholding ethical standards crucial in accounting?

  Maintains public trust
• Misrepresenting information is a breach of the integrity principle in accounting.


  True
• Accountants demonstrate integrity by being honest, transparent, and truthful
• Match the confidentiality principle with its consequence:

  Safeguarding data ↔️ Legal action

  Avoiding conflicts ↔️ Loss of trust

  Upholding ethics ↔️ Professional sanctions
• Objectivity and independence are essential for maintaining trust and credibility in accounting.

  True
• What is the consequence of accepting gifts that compromise independence?

  Loss of professional license
• Accountants must continuously develop their skills and knowledge through professional development
• In the case study, what ethical dilemma does the accountant face when asked to understate tax liability?

  Integrity vs financial incentive
• Reporting a client's unethical request to regulatory authorities is a necessary step in resolving ethical dilemmas.

  True