Profession & ethics

Question 1

What two functions are at the heart of performing the accounting profession?

Answer 1

Financial reporting

Assurance

Question 2

What two pillars does the accountancy profession support?

Answer 2

The public interest

Effective working capital markets (prevent asymmetric information)

Question 3

There are 5 ways that accountants help promote sustainability. What are they?

Answer 3

1. Climate related disclosures
2. Ensuring compliance with sustainability regulations
3. Ensure pollution taxes are paid
4. Obtain environmental grants
5. Compliance audits for sustainability

Their role is not to be campaigners

Question 4

Do you have to be qualified to call yourself an accountant?

Answer 4

NO

Unless working in reserved areas (Insolvency, audit, probate & investment business)

Question 5

What is the oversight mechanism?

Answer 5

Independent regulators to ensure the good intent and actions of self regulated industries.

Key participants in oversight mechanism:
Government
Regulators
Public
Members of Profession - for technical knowledge

Question 6

The FRC has both statutory and non-statutory powers. Sort them under the relevant headings; Statutory powers; Non-Statutory powers.

Education & training
Recognising and de-recognising bodies
Professional conduct and discipline
Information requirements
Standards and ethical matters
Imposing fines
Registration and monitoring

Answer 6

Statutory powers;

Recognising and de-recognising bodies
Information requirements
Imposing fines

Non-Statutory powers. but can investigate and make recommendations on;

Education & training
Professional conduct and discipline
Standards and ethical matters
Registration and monitoring

Question 7

Match the key term to its definition;

a) Professional values
b) Self regulation

1. Codes of ethics and conduct
2. Professionals judge each other and hold each other to account

Answer 7

a 1
b 2

Question 8

What two types of boards form a dual board structure?

a) unitary board
b) supervisory board
c) Non-executive board
d) executive board
e) management board

Answer 8

b & e

Question 9

Which of the following list 5 key elements of good corporate governance?

a) Board of directors, senior management, employees, external auditors, internal auditors
b) Senior management, shareholders, employees, external auditors, lenders
c) Board of directors, senior management, shareholders, external auditors, internal auditors
d) Senior management, stakeholders, employees, internal auditors auditors, lenders

Answer 9

c