Question

Which of the following is not typically considered a reason for the existence of codes of professional ethics?

a) Codes work in favour of the accounting profession by reducing the likelihood of further government regulation.

b) Codes indicate how members should react to on another.

c) Code make explicit those values which may be implicitly required.

d) Codes provide an objective base for sanctions against people who violate the rules

Answer 1

The correct answer for the question is Option A - Codes work in favour of the accounting profession by reducing the likelihood of further government regulation. The codes of Professional ethics, as mentioned in this option, do not work in favour of the accounting profession by reducing the likelihood of further government regulation. They ensure that all the ethical values are strictly adhered to by everyone in the accounting profession and help regulate the profession to ensure transparency and accountability.

Option B is incorrect as codes help people understand how members should react to different situations that they come across.

Option C is incorrect as codes specifically mention what values should be followed by people in the accounting profession.

Option D is incorrect as codes provide and specifically mention about the penalties/sanctions that one has to face incase they go against the rules. This statement is true. m

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