Chapter 13: Fundamental Principles Flashcards
1
Q
Integrity (5+3)
A
- Straightforward + Honest in BS/Prof relationships
- Fair dealing + Truthfulness
- One should not be associated with reports, returns, communications
that contain:
> materially false/misleading statement
> recklessly furnished info
> omits/obscures info to make it misleading - Take reasonable steps to disassociate himself from such misl. info
- Modified report in above case wont be considered a breach of code
2
Q
Objectivity (2)
A
- No compromise on prof/bs judgement because of bias/conflict of int./undue infl.
- Shall not undertake activity if circumstance/relationship unduly influences his judgement
3
Q
Professional Competence and Due Care (6)
A
- Maintain + Apply professional knowledge and skills
- Act diligently in a/c w/professional standards
- Phases: Attainment & Maintenance
- Maintaining = continuing awareness and understanding (CPD)
- Reasonable steps to ensure subordinates have appropriate training and supervision
- Make clients aware of inherent limitations of service
4
Q
Confidentiality (5+3)
A
- Be alert to possibility of inadvertent disclosure of such info
- Maintain confidentiality:
> within firm/emp org
> disclosed by client
> After relation is ended - Don’t disclose info outside BS relation without specific and proper authority (ask client first)
- Don’t use such info for personal/3rd party advantage
- Ensure subordinates also respect confidentiality
5
Q
Professional Behavior (3+3)
A
- Comply with laws and regulations
- Avoid actions bringing discredit to profession
- Don’t knowingly engage in any:
- business
- activity
- occupation
that impairs or may impair: - integrity
- objectivity
- good repu of profession
6
Q
Conflict between fundamental principles (3+5)
A
Consider consulting anonymously with:
- others within firm
- those with governance
- professional body
- regulatory body
- legal counsel
If that doesn’t help:
- Exercise professional judgement
- Disassociate from the matter creating conflict
