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BTF > Chapter 8 - The accountancy profession > Flashcards

Chapter 8 - The accountancy profession Flashcards

1
Q

What is a profession?

A

Considered as an occupational area e.g. accountancy

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2
Q

What is profession characterised by?

A
  • Mastering specialised skills
  • Governance by professional associations
  • Compliance with an ethical code
  • Process of certification before being allowed to practice
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3
Q

What are attributes that distinguishes professions from other occupations?

A
  • Formal regulatory process
  • Great degree of autonomy
  • Professional values
  • Self regulation
  • Coregulation
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4
Q

What is the importance of accountancy profession?

A

Concerned with the measurement, disclosure or provision of assurance about financial information that helps managers, investors, tax authorities and other decision makers.

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5
Q

Where do accountants work?

A
  • Public practice
  • Business (public or private sector)
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6
Q

What type of services do public practice accountants provide?

A
  • Reserved areas: insolvency, investment, audit and probate
  • Other accountancy areas: Accounting, taxation, corporate finance, ICT, management consultancy, forensic accounting, financial management
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7
Q

What types of sectors do accountants work in business?

A
  • Commerce
  • Industry
  • Service
  • Public sector
  • Education
  • Not for profit e.g. charity
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8
Q

What roles do accountants have in business sectors?

A
  • Transaction recording
  • Management accountant
  • Financial reporting
  • Treasury management
  • Administration
  • Pension
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9
Q

What are the three basic aspects of the professional accountant’s work?

A
  • Maintain control and safeguarding assets: Seek to ensure that all assets are kept safe through timely and accurate recording
  • Financial Management: Management of all processes associated with the raising and use of financial resources in a business
  • Financial reporting: Transactions and activities of the business, as represented in its accounting records, must be reported to external stakeholders
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10
Q

How can accountants support organisations for climate change and sustainability?

A
  • Gather information required for mandatory reporting
  • Compliance with regulation
  • Paid Environmental taxes
  • Enable business access green grants that are made available
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11
Q

[Green] Accountants also have the knowledge to assist with

A
  • Accessing and managing any addition risks to business associated with climate change
  • Creating strategies based on changes in the external environment
  • Assess the impact the business will have on the external environment
  • Access finance by making sure the business is sustainable and have sustainable strategies
  • Gather and process data related to the business and help with social impact to assist with governance

-KPI

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12
Q

What are the five major accountancy bodies that form CCAB?

A
  1. ICAEW
  2. ICAS
  3. Chartered Accountants Ireland
  4. ACCA
  5. CIPFA
  • Provides discussion forum and representative of profession
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13
Q

What is the IFAC?

A

International Federation of Accountants is an accounting body

  • Promote high ideals of standards, ethics and accountancy issues worldwide
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14
Q

What areas can a chartered accountant work that a self claimed accountant cannot

A
  1. Audit
  2. Investment business
  3. insolvency
  4. probate
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15
Q

What are the chartered institutes in the UK and Ireland?

A
  • England and wales - ICAEW
  • Institute of chartered accountants of scotland (ICAS)
  • Institute of chartered accountants in Ireland
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16
Q

What are the other professional bodies in the uk?

A
  1. Association of chartered certified accountants ACCA
  2. The chartered institute of management accountants CIMA
  3. The chartered institute of public finance and accountancy CIPFA
17
Q

What are the names of institutions for accounting technicians

A

Members of the association of accounting technicians ATT act as accounting technicians

18
Q

Why is regulation in the accounting profession needed?

A

Ensure that the public interest is protected in areas that are too complex for the public to understand e.g. actuaries, accountants, surveyors and doctors

19
Q

What are the 4 methods of regulation?

A
  • Direct government regulation via legislation
  • Separate government agency via delegated legislation
  • Self regulation by the industry/profession
  • Combination of above
20
Q

What is the role of government?

A

Overall responsibility for the effectiveness for the regulatory framework of accounting profession but delegates certain statutory powers to the financial reporting council FRC

21
Q

Is the ICAEW self regulated?

A

Yes - responsible for supervising all members to maintain professional standards and reputation of the profession

22
Q

What is an oversight mechanism?

A
  • Government
  • Regulators
  • Members of the profession
  • Members of the public
23
Q

What are the FRC comittees?

A
  • Conduct Committee
  • Codes and standards committee
24
Q

What are the Conduct committee for the FRC responsible for?

A
  • Professional oversight
  • Professional discipline
  • Corporate reporting review
  • Audit quality review
25
Q

What are the codes and standards committee responsible for?

A
  • Actuarial policy
  • Accounting and reporting policy
  • Audit and assurance
  • Corporate governance
26
Q

What are the three FRC professional oversight team and their roles?

A
  • Non-statutory oversight of the professional accounting bodies over the regulation of members with regards to matters not relating to statutory audits
  • Statutory regulation of the professional accountancy bodies in regards to their responsibilities over the registration, monitoring and discipling of statutory auditors
  • Independent monitoring by the Audit quality review team of the quality of the auditing function in relation to major public interest entities e.g. listed companies
27
Q

What are ethics?

A

Behaviours acceptable in society that tell us how to behave

28
Q

What is ethical behaviour

A

Acting in a manner is acceptable

29
Q

What are the expectations of an accountant?

A
  • Uphold the ICAEW code of ethics
  • Be able to identify likely threats to their principles
  • Be able to safeguard against those threats
30
Q

What are the regulations of the profession?

A
  • Entry and education requirements
  • Additional requirements for those practicing audit, investment business and insolvent work
  • Professional indemnity insurance (PII) required for those in public practice
  • Rigorous complaints investigation procedures
  • ICAEW is overseen itself by the financial reporting council (FRC)
31
Q

How does the ICAEW enable technical competence

A
  • Training and education requirements for the admission to ICAEW
  • Requirements for ongoing membership (continuing professional development) (CPD) and for public practice members, PII, practicing certificate, implementing the code of ethics
  • If practicing a reserved area - ICAEW has regulatory powers over members (eligibility, conduct, competence)

BTF (13 decks)

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