For each of the following, match the correct Ethical Principle (based on the FIVE ethical principles for Professional Accountants listed in APES110) Note it is possible that one item is NOT related to any ethical principle (hint - no more than one!) and you may select NOT AN ETHICAL ISSUE as a valid answer. An accountant recommends a particular company as a supplier to his or her boss without advising them that the manager of that business is a close personal friend or relative Answer 1 Choose... A PUBLIC ACCOUNTANT is found to have colluded (private agreement) with a client to misrepresent their accounts to overstate expenses on a large scale to reduce the client's tax bill in order to retain the business. (The client indicated that they would find another accountant if they did not agree.) Answer 2 DUE CARE AND COMPETENCE An accountant has spent a lot of time preparing a client's accounts and the billing to the client is much higher than the previous year. The client queries the bill. Answer 3 Choose... A PUBLIC ACCOUNTANT has a new client that he has completed tax returns for over a number of years. The client now wants this accountant to prepare and audit the accounts of the client's superannuation fund. The accountant is not overly experienced in superannuation but figures it cannot be too hard and accepts the job. Answer 4 Choose... An accountant is very proud of his or her work and tells their friends at a social gathering about the details of the work and the outcomes they have just completed. Answer 5 Choose... The MANAGING PARTNER at a PUBLIC ACCOUNTANT finds that the internal controls of a public company have not been enforced and errors in the accounts make it likely that the Financial Accounts will not be a true and fair representation of the client's circumstances. The Accountant decides NOT to issue a qualified audit report and signs off that all is in order. Answer 6 Choose... A PUBLIC ACCOUNTANT is aware that new provisions for the taxation of trust distributions are coming into effect however because they are very busy, does not have time to attend training seminars or read up on the new laws. The accountant prepares the accounts without taking into account the new laws and the client is unfavourably taxed due to errors in their accounts. Answer 7 Choose... An accountant emphasizes the qualitative advantages of a proposal in a report so that the outcome is better for a close associate within the business even though the qualitative (accounting numbers) appear not to favour the proposal. Answer 8 Choose...