Return to the HomepageEthics for Accountants Test Two
Q1 of 15

Whilst attending a charity golf function Peter, a qualified accountant, gets into a discussion over
dinner with one of his firm's clients who has some questions regarding inheritance tax
following the death of his great uncle. Peter has a basic knowledge of tax but is not an
expert on inheritance tax.

(a) Which ethical principle does this situation threaten? Select one option.

Professional competence and due care
Professional behaviour

(b) In this situation which of the following is the best course of action for Peter?

Tell the client his opinion based on his limited knowledge of
inheritance tax
Tell the client that he does not have the necessary knowledge to
help him with his query
Shout to his colleague across the room who is an expert on
inheritance tax explaining the situation in detail