o Multiple Choice Questions
1. What are included in ethical standards?
a. Integrity, Objectivity and Independence
b. Financial, business, employment and personal relationships
C. Non-Assurance Services provided to an Assurance Client Integrity, Objectivity and
Independence
d. All of the above
2. What is ISA ?
a. International standard in accounting
b. International standard in auditing
c. International accounting Standard
d. None of the above
3. It is obtained through commercial or professional contracts and shall not divulge any
such information to unapproved third parties unless required by law or other
professional obligations.
a. Professional behavior.
b. Maintain the privacy of any information
c. Professionalism and caution
D. identify, evaluate and address threats to compliance
4. A member should comply with relevant laws and regulations and should
avoid any action that discredits the profession.
a. Professional behavior.
b. Maintain the privacy of any information
c. Professionalism and caution
D. identify, evaluate and address threats to compliance
5. The Institute of Certified Public Accountants of Rwanda (ICPAR) conceptual
framework requires ICPAR – Code of Ethics – Part A 100.2. What fundamentals
principle is this?
a. Professional behavior.
b. Each member to identify, evaluate and address threats to compliance
c. Professionalism and caution
D. identifies, evaluate and address threats to compliance
6. Audit firm should not undertake design or implement systems that are a
significant part of the accounting systems.
A. Valuation
b. IT Services
c. Tax services
d. Accounting services
[Link] Should provide routine compliance work only.
A. Valuation
b. IT Services
c. Tax services
d. Accounting services
8. Auditors should not accept any role on a contingent fee basis.
A. Valuation
b. IT Services
c. Corporate finance services
d. Accounting services
9. Auditors should not undertake such services for a listed company.
A. Valuation
b. IT Services
c. Corporate finance services
d. Accounting services
10. Firm should not provide such services where they intend to place
significant reliance on such work as part of external audit.
A. Valuation
b. IT Services
c. Internal Audit
d. Accounting services
11. What is companies acts article 238?
a. Statutory responsibilities and rights
b. Appointment of auditor
c. Auditors remuneration
d. Auditors’ rights
12. What is companies acts article 239?
a. Statutory responsibilities and rights
b. Appointment of auditor
c. Auditors remuneration
d. Auditors’ rights
13. What is companies acts article 249?
a. Statutory responsibilities and rights
b. Appointment of auditor
c. Auditors remuneration
d. Auditors’ rights
14. It can lead to a self- interest threat, self- review threat and a familiarity threat.
These may give rise to threats against independence and objectivity.
a. Long association with the audit engagement
B. Fees, remuneration and evaluation policies, litigation, gifts and hospitality
C. Non-Assurance services provided to audit client
D. All of the above
15. Firms need to have procedures in place to consider the impact of non-assurance
services on the firm’s independence and objectivity.
a. Long association with the audit engagement
B. Fees, remuneration and evaluation policies, litigation, gifts and hospitality
C. Non-Assurance services provided to audit client
D. All of the above
16. An audit should not be undertaken on a contingent fee basis. The fee charged
should not impact on the performance of an audit.
a. Long association with the audit engagement
B. Fees, remuneration and evaluation policies, litigation, gifts and hospitality
C. Non-Assurance services provided to audit client
D. All of the above
17. It should recommend dealing with a number of other auditor related issues
depending on the applicable jurisdiction
a. Long association with the audit engagement
B. Fees, remuneration and evaluation policies, litigation, gifts and hospitality
C. Non-Assurance services provided to audit client
D. Companies Law
18. It should be fixed at the Annual Meeting and should be disclosed in the financial
statements.
a. Statutory responsibilities and rights
b. Appointment of auditor
c. Auditors remuneration
d. Auditors’ rights
19. . ____________ code of ethics for professional accountants should be adhered to by
the auditor.
a. The International Federation of Accountants
b. . Professional Regulatory Body
c. External Quality Control
d. None of the above
20. It laid out under companies and other related legislation.
a. Statutory responsibilities and rights
b. Appointment of auditor
c. Auditors remuneration
d. Auditors’ rights