Conflicts of Interest and Confidentiality Protocols

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Which entity is responsible for the convergence of International Standards and Practice Statement to determine if they can be adopted in the Philippines?

AASC (correct)

PICPA

IAASB

IFAC

What is the primary objective of the Code of Ethics for professional accountants?

To serve the public interest (correct)

To adhere to international taxation laws

To maximize personal profits

To prioritize self-interest over the common good

How many Fundamental Principles (PIO-CP) are outlined in the Code of Ethics for professional accountants?

Two

Ten

Five (correct)

Seven

What is the main focus of the Principle of Integrity in the Code of Ethics for professional accountants?

Fair dealing and truthfulness Signup and view all the answers

Which entity is responsible for the publication of pronouncements like PAS or PAPS in the Philippines?

AASC Signup and view all the answers

What does the PICPA adopt as a model for national ethical guidance from IFAC?

Code of Ethics Signup and view all the answers

What is the main objective of the AASC?

To establish and promulgate auditing standards Signup and view all the answers

Which of the following falls under the engagement standards issued by the AASC?

Phil Auditing Practice Statements (PAPSs) Signup and view all the answers

When should the Professional Accountant (PA) adhere to the Engagement Standards (ES)?

When conducting an independent examination of financial statements Signup and view all the answers

Which set of standards specifically deal with matters other than historical financial information?

Phil Standards on Related Services (PSRS) Signup and view all the answers

In what exceptional cases can a Professional Accountant depart from the Engagement Standards (ES)?

To achieve the objective of the engagement more effectively Signup and view all the answers

Which document is applicable whenever an independent examination of financial statements is conducted for the purpose of expressing an opinion?

Phil Standards on Quality Control (PSQC) Signup and view all the answers

What should a PA do if conflicts of interest cannot be resolved at the immediate superior level?

Seek advice from an independent advisor Signup and view all the answers

What is one of the threats to compliance with the Fundamental Principles related to self-interest?

Accepting gifts or preferential treatment from the client Signup and view all the answers

What does the principle of confidentiality entail?

Ensuring staff members also maintain confidentiality Signup and view all the answers

How should a PA respond to intimidation threats?

Identify and apply safeguard procedures Signup and view all the answers

Which of the following is a safeguard related to intimidation threats?

Firm-wide safeguards stressing compliance with fundamental principles Signup and view all the answers

What is the key difference between independence in mind and independence in appearance for a professional accountant?

Independence in mind refers to the estate of mind permitting unbiased conclusions, while independence in appearance refers to avoiding circumstances that compromise judgment. Signup and view all the answers

Which of the following is considered a threat to independence due to financial interest?

Loans and guarantees made under normal lending procedures Signup and view all the answers

What is the recommended timeframe for rotating lead engagement partners as a safeguard for independence?

At least once every 5 years Signup and view all the answers

In which type of assurance engagement is the provision of accounting and bookkeeping services to the client prohibited?

F/S Audit engagements Signup and view all the answers

What action should be taken when a self-interest threat arises from close business relationships in a Non FS Audit engagement?

Terminate the business relationship Signup and view all the answers

Which of the following scenarios poses a self-interest and self-review threat?

Past employment with assurance clients as a director or officer Signup and view all the answers

Which activity poses a self-review threat according to the text?

Assisting in preparing accounting records and financial statements Signup and view all the answers

What is a potential threat associated with the provision of corporate finance services?

Self-review and advocacy Signup and view all the answers

Which situation may lead to familiarity and intimidation threats, as per the text?

Actual or threatened litigation Signup and view all the answers

What can create a self-interest threat in the context of temporary staff assignments?

Recruiting senior management Signup and view all the answers

Which service is most likely to result in self-review and advocacy threats based on the information provided?

Provision for internal audit services Signup and view all the answers

In the context of assurance engagements, what could lead to self-interest, familiarity, and intimidation threats?