Chapter 5 - Code of ethics Flashcards
What are the five fundamental principles?
Objectivity
Professional competence and due care
Professional Behaviour
Integrity
Confidentiality
What is objectivity?
not allowing bias, conflict of interest or the influence of other people to override your professional judgement
What is professional competence and due care?
Ongoing commitment to maintain your level of professional knowledge and skill so that your client or employer received a competent, professional service
What is professional behaviour?
Being compliant with relevant laws and regulations. You must also avoid any action that could negatively affect the reputation of the profession.
What is Integrity?
Being straightforward, honest and truthful in all professional and business replationships
What is confidentiality?
Respecting the confidential nature of information you acquire through professional relationships. You should not disclose such information unless you have specific permission or a legal or professional duty to do so.
What are the five common threats?
Self Interest
Intimidation
Familiarity
Advocacy
Self-review
What is self interest?
can occur as a result of your own or your close family’s interests - financial or otherwise.
What is intimidation?
can occur when you are deterred from acting objectively by actual or perceived threats
What is Familitarity?
Can be present when you become sympathetic to the interests of others as a result of a close relationship that your professional judgement becomes comprised
What is advocacy?
can be a problem when you are promoting a position or opinion to the point that you subsequent objectivity is comprised
What is self-review?
Arises when an accountant is reviewing, judging or concluding upon their own work
