Accounting Online Program Certification Practice Test

Which behavior is NOT one of the ethics behaviors outlined by IASB?

1. Integrity

2. Confidentiality

3. Profit Maximization

4. Professional competence and due care

The correct answer is: Profit Maximization

The behavior identified as "Profit Maximization" is not one of the ethical behaviors outlined by the International Accounting Standards Board (IASB). The IASB emphasizes the importance of ethical principles such as integrity, confidentiality, and professional competence, all of which focus on maintaining trust and responsibility in financial reporting and decision-making. Integrity promotes honesty and fairness in all professional activities, while confidentiality underscores the importance of protecting sensitive information entrusted to accountants. Professional competence and due care highlight the necessity for accountants to maintain skills and knowledge at the required level and to act diligently in their professional work. In contrast, profit maximization can often lead to ethical dilemmas, as it might encourage behaviors that are not aligned with the principles of honesty and transparency, thereby compromising the integrity of financial reporting. This distinction is crucial for accountants who must navigate ethical considerations within their practices while adhering to the standards set forth by the IASB.