Chapter 1 - Costing

Question 1

Define Integrity

Answer 1

Be straightforward and honest in all professional/business relationships

Question 2

Define Objectivity

Answer 2

Do not allow bias, conflict of interest or undue influence of others in business judgements.

Question 3

Define Professional competence and due care

Answer 3

Maintain professional knowledge and skill at an appropriate level and acting diligently.

Question 4

Define confidentiality

Answer 4

Do not disclose client information without appropriate specific authority.

Question 5

Define professional behaviour

Answer 5

Comply with relevant laws and regulations and avoid actions discrediting the profession

Question 6

What should Management information be?

Answer 6

Clear
Accurate and complete
Prepared on a timely basis

Question 7

What are the threats to objectivity (defined by the code)?

Answer 7

Familiarity
Self-review
Self-interest
Intimidation
Advocacy

Question 8

Define familiarity threat

Answer 8

Becomes too sympathetic to the interests of clients because of a close business or personal relationship.

Question 9

Define self-review threat

Answer 9

Responsible for reviewing subject matter for which the firm or individual were previously responsible.

Question 10

Define self-interest threat

Answer 10

Could benefit from a financial or other interest in a client

Question 11

Define intimidation threat

Answer 11

Deterred from acting objectively by threats, actual or perceived from client

Question 12

Define advocacy

Answer 12

Promotes, or may be perceived to promote a clients position or opinion.