9 CFA Sample Exam Questions Free with Answers for Level 3 on Ethics

There are no easy-outs in the CFA exams and it’s similar to the Ethics topic. You need to have some strategies getting you through the exam and 9 CFA Sample Exam Questions Free with Answers for Level 3 on Ethics is one of the strategies we would love to suggest. Through many questions with answers in the multiple choice format, you will be provided a coverage of the ethics topic; holding broader understanding and solutions to ethical issues. Put your effort to this ultimate and essential CFA mock exam daily to round out your study method and help revise most efficiently. Hope you score well and improve your weaknesses after submitting all the following questions.

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Audit, investment business or insolvency.

• Which body sets global ethical standards for accountants?
• (c) State the four sponsoring bodies of AAT.
• State the three statutory regulated (reserved) areas in accounting and finance.
• Which body is responsible for regulating the UK accountancy profession as a whole?

An action for breach of contract. An action for professional negligence

• All professional accountants have five ethical principles which they have a duty to comply with. Explain whether this duty is more important for professional accountants in practice rather than those in business.
• (b) Charis is a professional accountant with her own small practice. She prepares sets of accounts and tax returns for a wide range of sole traders.In light of her client base, explain ONE area of technical knowledge in which Charis must keep up-to-date.
• Professional accountants are required to undertake continuing professional development (CPD). State which ONE of the five fundamental principles is safeguarded by CPD.
• Frank, a professional accountant in practice, has acted outside the limits of his professional expertise in working for his client Nancy. Nancy has incurred a regulatory fine as a result.State TWO grounds on which Nancy may be able to seek compensation from Frank for this loss.

International Federation of Accountants (IFAC).

• Which body sets global ethical standards for accountants?
• (c) State the four sponsoring bodies of AAT.
• Which body is responsible for regulating the UK accountancy profession as a whole?
• State the three statutory regulated (reserved) areas in accounting and finance.

ICAEW, CIMA, CIPFA or ICAS

• State the three statutory regulated (reserved) areas in accounting and finance.
• Which body is responsible for regulating the UK accountancy profession as a whole?
• (c) State the four sponsoring bodies of AAT.
• Which body sets global ethical standards for accountants?

The Financial Reporting Council (FRC)

• (c) State the four sponsoring bodies of AAT.
• Which body sets global ethical standards for accountants?
• State the three statutory regulated (reserved) areas in accounting and finance.
• Which body is responsible for regulating the UK accountancy profession as a whole?

Professional behaviour.

• Which body sets global ethical standards for accountants?
• (c) State the four sponsoring bodies of AAT.
• Complete the following statement:A professional accountant who complies with the law, brings no disrepute on the profession and is perceived as being ethical by other people has complied with the fundamental principle of
• State the three statutory regulated (reserved) areas in accounting and finance.

Identify one of: regulation of accounting; tax legislation/compliance; money laundering regulation; accounting/reporting standards.Reason given for importance of area selected for sole traders because clients are businesses which must comply with requirement for accurate accounts preparation and tax returns/Charis needs to protect herself re money laundering.

• Frank, a professional accountant in practice, has acted outside the limits of his professional expertise in working for his client Nancy. Nancy has incurred a regulatory fine as a result.State TWO grounds on which Nancy may be able to seek compensation from Frank for this loss.
• (c) State the four sponsoring bodies of AAT.
• (b) Charis is a professional accountant with her own small practice. She prepares sets of accounts and tax returns for a wide range of sole traders.In light of her client base, explain ONE area of technical knowledge in which Charis must keep up-to-date.
• All professional accountants have five ethical principles which they have a duty to comply with. Explain whether this duty is more important for professional accountants in practice rather than those in business.

It is EQUALLY important for accountants in business to comply as for those in practice, because these are the fundamental principles of the profession even if how they are complied with is different.

• (b) Charis is a professional accountant with her own small practice. She prepares sets of accounts and tax returns for a wide range of sole traders.In light of her client base, explain ONE area of technical knowledge in which Charis must keep up-to-date.
• Frank, a professional accountant in practice, has acted outside the limits of his professional expertise in working for his client Nancy. Nancy has incurred a regulatory fine as a result.State TWO grounds on which Nancy may be able to seek compensation from Frank for this loss.
• All professional accountants have five ethical principles which they have a duty to comply with. Explain whether this duty is more important for professional accountants in practice rather than those in business.
• Professional accountants are required to undertake continuing professional development (CPD). State which ONE of the five fundamental principles is safeguarded by CPD.

Professional competence and due care.

• Which body is responsible for regulating the UK accountancy profession as a whole?
• Frank, a professional accountant in practice, has acted outside the limits of his professional expertise in working for his client Nancy. Nancy has incurred a regulatory fine as a result.State TWO grounds on which Nancy may be able to seek compensation from Frank for this loss.
• All professional accountants have five ethical principles which they have a duty to comply with. Explain whether this duty is more important for professional accountants in practice rather than those in business.
• Professional accountants are required to undertake continuing professional development (CPD). State which ONE of the five fundamental principles is safeguarded by CPD.