Professional Ethics ICAP MCQs 2026

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

1. A investigation and sanctions for professional misconduct ✓
2. B no discipline for members ever ✓
3. C only criminal courts handle all ethics ✓
4. D ignore complaints automatically ✓

Which statement about Advertising by chartered accountants is correct

1. A guarantee audit pass in advertisement ✓
2. B must not be false misleading or comparative in prohibited manner ✓
3. C claim lowest fee means best audit always ✓
4. D disparage other firms unprofessionally ✓

Professional Ethics ICAP: Confidentiality principle can be defined as

1. A share client data on social media ✓
2. B respecting client information unless legal or professional duty to disclose ✓
3. C sell client lists to competitors ✓
4. D discuss audit findings publicly before report ✓

Which statement about ICAP Code of Ethics is correct

1. A optional suggestions only ✓
2. B fundamental principles integrity objectivity professional competence confidentiality and professional behaviour ✓
3. C only for students never members ✓
4. D replaced entirely by company HR policy ✓

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

1. A never update training after qualification ✓
2. B maintaining knowledge and performing services diligently ✓
3. C accept any engagement without capability ✓
4. D deliberately negligent work ✓

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

1. A favour client to retain fee always ✓
2. B ignore conflicting evidence ✓
3. C always agree with management estimates ✓
4. D not allowing bias conflict of interest or undue influence ✓

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

1. A ICAP Code applies to members in industry and public practice ✓
2. B only partners in Big Four ✓
3. C students exempt from all ethics forever ✓
4. D retired members never bound ✓

In Professional Ethics ICAP, Contingent fees for audit primarily means

1. A fee only if clean opinion issued ✓
2. B percentage of client profit as audit fee always ✓
3. C generally prohibited for audit and review engagements ✓
4. D bonus for ignoring misstatements ✓

Which statement about Threats and safeguards framework is correct

1. A ignore all threats ✓
2. B only threats to students not partners ✓
3. C identify threats and apply safeguards to reduce to acceptable level ✓
4. D safeguards never needed ✓

Professional behaviour in the context of Professional Ethics ICAP refers to

1. A aggressive marketing with false claims ✓
2. B harassment of client staff acceptable ✓
3. C ignore court orders ✓
4. D complying with laws and avoiding conduct discrediting profession ✓

In Professional Ethics ICAP, Integrity principle primarily means

1. A hide errors from client always ✓
2. B being straightforward and honest in professional relationships ✓
3. C backdate working papers ✓
4. D accept bribes for clean opinion ✓

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

1. A always ignore client illegal acts ✓
2. B always public media first ✓
3. C accountant considers reporting when client breaches laws ✓
4. D never consult lawyers ✓

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

1. A trust all client representations blindly ✓
2. B objectivity requires questioning mind not assuming management honesty always ✓
3. C skepticism only for tax not audit ✓
4. D assume fraud everywhere without evidence ✓

In Professional Ethics ICAP, Fee quoting and lowballing primarily means

1. A fee must not be so low that quality threatened ✓
2. B always lowest fee wins regardless of work ✓
3. C quality irrelevant to fee setting ✓
4. D client sets fee at zero always acceptable ✓

Money laundering reporting obligations is best described as

1. A ignore all suspicious activity ✓
2. B tip off client before reporting always ✓
3. C AML never applies to accountants ✓
4. D accountants may need to report suspicious transactions under AML law ✓

Which statement about Second opinion practice is correct

1. A always criticize prior accountant unprofessionally ✓
2. B providing second opinion on another accountant work requires care ✓
3. C no communication with predecessor needed ever ✓
4. D take client from auditor by promising clean opinion ✓

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

1. A do not accept work without competent team or expert support ✓
2. B solo audit giant bank without experience ✓
3. C never consult specialists ✓
4. D fake qualifications acceptable ✓

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

1. A reporting suspected professional misconduct by members ✓
2. B always prohibited to report ✓
3. C only client may report never public ✓
4. D reports destroyed without review ✓

A key aspect of Professional indemnity insurance is that it involves

1. A no insurance needed ever ✓
2. B only client insures auditor ✓
3. C optional for all firms regardless of size ✓
4. D practicing firms maintain PII as required by ICAP regulations ✓

In Professional Ethics ICAP, Gifts to auditors primarily means

1. A luxury car from client acceptable ✓
2. B cash envelope standard practice ✓
3. C must not accept gifts that compromise or appear to compromise integrity ✓
4. D unlimited hospitality always fine ✓