Professional Ethics ICAP MCQs 2026

In Professional Ethics ICAP, Gifts to auditors primarily means

1. Aluxury car from client acceptable✓
2. Bcash envelope standard practice✓
3. Cmust not accept gifts that compromise or appear to compromise integrity✓
4. Dunlimited hospitality always fine✓

A key aspect of Professional indemnity insurance is that it involves

1. Ano insurance needed ever✓
2. Bonly client insures auditor✓
3. Coptional for all firms regardless of size✓
4. Dpracticing firms maintain PII as required by ICAP regulations✓

Regarding Whistleblowing to ICAP in Professional Ethics ICAP, the accurate view is

1. Areporting suspected professional misconduct by members✓
2. Balways prohibited to report✓
3. Conly client may report never public✓
4. Dreports destroyed without review✓

Acting with sufficient expertise in the context of Professional Ethics ICAP refers to

1. Ado not accept work without competent team or expert support✓
2. Bsolo audit giant bank without experience✓
3. Cnever consult specialists✓
4. Dfake qualifications acceptable✓

Which statement about Second opinion practice is correct

1. Aalways criticize prior accountant unprofessionally✓
2. Bproviding second opinion on another accountant work requires care✓
3. Cno communication with predecessor needed ever✓
4. Dtake client from auditor by promising clean opinion✓

Money laundering reporting obligations is best described as

1. Aignore all suspicious activity✓
2. Btip off client before reporting always✓
3. CAML never applies to accountants✓
4. Daccountants may need to report suspicious transactions under AML law✓

In Professional Ethics ICAP, Fee quoting and lowballing primarily means

1. Afee must not be so low that quality threatened✓
2. Balways lowest fee wins regardless of work✓
3. Cquality irrelevant to fee setting✓
4. Dclient sets fee at zero always acceptable✓

A key aspect of Professional scepticism ethics link is that it involves

1. Atrust all client representations blindly✓
2. Bobjectivity requires questioning mind not assuming management honesty always✓
3. Cskepticism only for tax not audit✓
4. Dassume fraud everywhere without evidence✓

Regarding Responding to non-compliance with laws NOCLAR in Professional Ethics ICAP, the accurate view is

1. Aalways ignore client illegal acts✓
2. Balways public media first✓
3. Caccountant considers reporting when client breaches laws✓
4. Dnever consult lawyers✓

In Professional Ethics ICAP, Integrity principle primarily means

1. Ahide errors from client always✓
2. Bbeing straightforward and honest in professional relationships✓
3. Cbackdate working papers✓
4. Daccept bribes for clean opinion✓

Professional behaviour in the context of Professional Ethics ICAP refers to

1. Aaggressive marketing with false claims✓
2. Bharassment of client staff acceptable✓
3. Cignore court orders✓
4. Dcomplying with laws and avoiding conduct discrediting profession✓

Which statement about Threats and safeguards framework is correct

1. Aignore all threats✓
2. Bonly threats to students not partners✓
3. Cidentify threats and apply safeguards to reduce to acceptable level✓
4. Dsafeguards never needed✓

In Professional Ethics ICAP, Contingent fees for audit primarily means

1. Afee only if clean opinion issued✓
2. Bpercentage of client profit as audit fee always✓
3. Cgenerally prohibited for audit and review engagements✓
4. Dbonus for ignoring misstatements✓

Member in business vs practice in the context of Professional Ethics ICAP refers to

1. AICAP Code applies to members in industry and public practice✓
2. Bonly partners in Big Four✓
3. Cstudents exempt from all ethics forever✓
4. Dretired members never bound✓

Regarding Objectivity principle in Professional Ethics ICAP, the accurate view is

1. Afavour client to retain fee always✓
2. Bignore conflicting evidence✓
3. Calways agree with management estimates✓
4. Dnot allowing bias conflict of interest or undue influence✓

Professional competence and due care in the context of Professional Ethics ICAP refers to

1. Anever update training after qualification✓
2. Bmaintaining knowledge and performing services diligently✓
3. Caccept any engagement without capability✓
4. Ddeliberately negligent work✓

Regarding Disciplinary process ICAP in Professional Ethics ICAP, the accurate view is

1. Ainvestigation and sanctions for professional misconduct✓
2. Bno discipline for members ever✓
3. Conly criminal courts handle all ethics✓
4. Dignore complaints automatically✓

Which statement about Advertising by chartered accountants is correct

1. Aguarantee audit pass in advertisement✓
2. Bmust not be false misleading or comparative in prohibited manner✓
3. Cclaim lowest fee means best audit always✓
4. Ddisparage other firms unprofessionally✓

Professional Ethics ICAP: Confidentiality principle can be defined as

1. Ashare client data on social media✓
2. Brespecting client information unless legal or professional duty to disclose✓
3. Csell client lists to competitors✓
4. Ddiscuss audit findings publicly before report✓

Which statement about ICAP Code of Ethics is correct

1. Aoptional suggestions only✓
2. Bfundamental principles integrity objectivity professional competence confidentiality and professional behaviour✓
3. Conly for students never members✓
4. Dreplaced entirely by company HR policy✓