100+ Free CA ANZ Core 1 Practice Questions

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Key Facts: CA ANZ Core 1 Exam

Fundamental Ethics Principles

APES 110 Code of Ethics

Threat Categories

APES 110 Conceptual Framework

IFRS S1 & S2

ISSB Disclosure Standards

IFRS Foundation (June 2023)

9 weeks

Study Period (CACC2500)

CA ANZ Course Description

No final exam

Assignment-Assessed Subject

CA ANZ FAQ

100

Free Practice Questions

OpenExamPrep

CA Program Core 1: Ethics and Sustainability (CACC2500) is a nine-week online subject on My Capability Learn. CA ANZ confirms Ethics has no final invigilated exam; it is assessed by a high-stakes written assignment plus early low-stakes online knowledge quizzes. The syllabus covers the International Code of Ethics (APES 110) fundamental principles, threats and safeguards, independence, conflicts of interest, and NOCLAR; professional skepticism and ethical decision-making; corporate governance; and sustainability concepts including ISSB IFRS S1 and S2 climate disclosure and assurance. CA ANZ does not publicly publish topic weightings, question counts, or a per-subject pass rate; the My Capability Learn subject outline is authoritative. This free bank provides 100 MCQs to build the underlying knowledge body.

Sample CA ANZ Core 1 Practice Questions

Try these sample questions to test your CA ANZ Core 1 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the International Code of Ethics (APES 110), which of the following is one of the five fundamental principles a Chartered Accountant must comply with?

A.Conservatism

B.Profitability

C.Integrity

D.Materiality

Explanation: APES 110 sets out five fundamental principles: integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour. Integrity requires a member to be straightforward and honest in all professional and business relationships.

2The conceptual framework in APES 110 requires a professional accountant to identify, evaluate, and address threats to compliance with the fundamental principles. What must a member do when a threat is at an unacceptable level and no safeguards can reduce it?

A.Increase the audit fee to compensate for the risk

B.Obtain a waiver from the client

C.Disclose the threat in a footnote and proceed

D.Decline or terminate the engagement or professional activity

Explanation: When a threat cannot be eliminated or reduced to an acceptable level by applying safeguards, APES 110 requires the member to decline or end the specific professional activity, engagement, or relationship. Proceeding would compromise compliance with the fundamental principles.

3A Chartered Accountant prepares a tax return for a long-standing client who is also a close personal friend. Which category of threat to compliance with the fundamental principles does this relationship MOST directly create?

A.Self-interest threat

B.Familiarity threat

C.Advocacy threat

D.Intimidation threat

Explanation: A familiarity threat arises when, due to a long or close relationship, a member becomes too sympathetic to a client's interests or too accepting of their work. A close friendship can impair objectivity, so safeguards or rotation may be needed.

4Under APES 110, the fundamental principle of objectivity requires a professional accountant to:

A.Not allow bias, conflict of interest, or undue influence to override professional judgements

B.Maintain professional knowledge at the required level

C.Act in the public interest above all else at all times

D.Keep client information confidential indefinitely

Explanation: Objectivity requires a member to exercise professional or business judgement without being compromised by bias, conflict of interest, or the undue influence of others. It protects the quality and impartiality of professional decisions.

5APES 110 defines safeguards as actions or other measures that may eliminate threats or reduce them to an acceptable level. Which of the following is an example of a safeguard created by the profession, legislation, or regulation?

A.Consulting an independent third party

B.A firm's internal review of significant judgements by a second partner

C.Mandatory continuing professional development and ethics requirements

D.Rotating senior personnel off an engagement

Explanation: Safeguards created by the profession, legislation, or regulation include educational and training requirements, continuing professional development, corporate governance regulations, and professional standards. These exist outside any single firm or engagement.

6Independence, as addressed in APES 110, is most closely associated with which two fundamental principles?

A.Professional competence and confidentiality

B.Objectivity and professional behaviour

C.Confidentiality and professional behaviour

D.Integrity and objectivity

Explanation: Independence is linked to the fundamental principles of integrity and objectivity. It comprises independence of mind and independence in appearance, ensuring a member's conclusions are not compromised and are seen to be free of influence.

7NOCLAR in APES 110 refers to responding to:

A.New obligations for climate-linked accounting recognition

B.Non-current liabilities and revaluation

C.Non-compliance with laws and regulations

D.Notification of conflicts and litigation arrangements

Explanation: NOCLAR stands for Non-Compliance with Laws and Regulations. The Code provides a framework guiding members on how to act in the public interest when they become aware of, or suspect, non-compliance by a client or employer.

8Under the NOCLAR provisions, when acting in the public interest may permit a member to disclose suspected non-compliance to an appropriate authority, which fundamental principle is being set aside?

A.Integrity

B.Objectivity

C.Confidentiality

D.Professional competence and due care

Explanation: The NOCLAR framework allows a member to override the principle of confidentiality and report non-compliance to an appropriate authority where disclosure is in the public interest. This is a deliberate, narrow exception to confidentiality.

9A professional accountant in business becomes aware that their employer is dumping untreated waste in breach of environmental law. Under the NOCLAR framework, what is an appropriate FIRST step?

A.Raise the matter with those charged with governance or appropriate level of management

B.Post the evidence on social media to protect the public

C.Ignore it because the member did not cause the breach

D.Immediately resign without any further action

Explanation: The NOCLAR framework directs the member to first seek to have the matter addressed internally, typically by raising it with management or those charged with governance, to enable the entity to rectify or deter the non-compliance.

10A member is asked to act as an expert witness vigorously promoting a client's position in a commercial dispute. Which threat to objectivity is MOST prominent?

A.Advocacy threat

B.Familiarity threat

C.Self-interest threat

D.Self-review threat

Explanation: An advocacy threat arises when a member promotes a client's or employer's position to the point that objectivity is, or may be perceived to be, compromised. Strongly championing a client in litigation heightens this threat.

About the CA ANZ Core 1 Exam

Core 1: Ethics and Sustainability (CACC2500) is the foundational CA Program subject delivered online via My Capability Learn. It develops professional ethics under the International Code of Ethics (APES 110), professional reflection and skepticism, sustainability and ISSB climate disclosure concepts, and corporate governance for the Chartered Accountant's role in society.

Assessment

Question count not published by the exam provider

Time Limit

Nine-week online study period (CACC2500)

Passing Score

Competency-based; no single fixed pass mark is published for this subject

Exam Fee

CA Program subject fee set by CA ANZ for the enrolment term; see the official fees and enrolment page (Chartered Accountants Australia and New Zealand (CA ANZ))

CA ANZ Core 1 Exam Content Outline

45%

Professional Ethics (APES 110 Code of Ethics)

Five fundamental principles, the threats-and-safeguards conceptual framework, independence, conflicts of interest, inducements, NOCLAR, and applying the Code to common ethical dilemmas.

35%

Sustainability and ESG Reporting

ISSB IFRS S1 and S2, the four TCFD-based content pillars, Scope 1-3 emissions, materiality, scenario analysis, greenwashing, SDGs, circular economy, and sustainability assurance levels.

20%

Governance and Professional Responsibilities

Corporate governance, board independence, audit committees, agency and stakeholder theory, professional skepticism, professional reflection, the three lines model, and the CA's role in society.

How to Pass the CA ANZ Core 1 Exam

What You Need to Know

Passing score: Competency-based; no single fixed pass mark is published for this subject
Assessment: Question count not published by the exam provider
Time limit: Nine-week online study period (CACC2500)
Exam fee: CA Program subject fee set by CA ANZ for the enrolment term; see the official fees and enrolment page

Keys to Passing

Work through all 100 available questions
Review every answer and explanation
Track weak areas and revisit them
Use our AI tutor for tough concepts

CA ANZ Core 1 Study Tips from Top Performers

1Learn the five fundamental principles and the threats-and-safeguards framework cold, then practise applying them to scenario questions.

2Distinguish the five threat categories (self-interest, self-review, advocacy, familiarity, intimidation) using concrete examples.

3Map the four IFRS S1 and S2 content pillars (governance, strategy, risk management, metrics and targets) to sample disclosures.

4Be precise about Scope 1, 2, and 3 emissions and the difference between limited and reasonable assurance.

5Connect ethics to sustainability: credible ESG reporting depends on integrity, objectivity, and professional skepticism.

6Use the My Capability Learn subject outline as the authoritative source for assessment requirements each term.

Frequently Asked Questions

Is there a final exam for CA ANZ Core 1: Ethics and Sustainability?

No. CA ANZ confirms that the Ethics and Sustainability subject has no final invigilated exam. It is assessed by a high-stakes written assignment plus early low-stakes online knowledge quizzes delivered through My Capability Learn.

What does CA ANZ Core 1 cover?

Core 1 covers the International Code of Ethics (APES 110), including the five fundamental principles, threats and safeguards, independence, conflicts of interest, and NOCLAR, plus professional skepticism and reflection, corporate governance, and sustainability concepts such as ISSB IFRS S1 and S2 climate disclosure and assurance.

How long is the CA ANZ Core 1 subject?

Core 1: Ethics and Sustainability (CACC2500) is delivered over a nine-week study period online via the My Capability Learn platform, with self-paced weekly study and activities.

What are the five fundamental principles in APES 110?

The five fundamental principles are integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour. Members apply a conceptual framework to identify, evaluate, and address threats to compliance with these principles.

What are IFRS S1 and IFRS S2?

IFRS S1 sets general requirements for disclosing material sustainability-related risks and opportunities, while IFRS S2 sets specific climate-related disclosures. Both, issued by the ISSB in June 2023, organise disclosures around governance, strategy, risk management, and metrics and targets.

How much does the CA Program Core 1 subject cost?

CA ANZ sets the CA Program subject fee per enrolment term. Check the official CA ANZ timetables, fees, and enrolment page for the current per-subject cost, as fees can change between terms.

100+ Free CA ANZ Core 1 Practice Questions

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