Principles of professional ethics Flashcards
(52 cards)
1
Q
What are the professional ethics of an organisation ? P95
A
- Moral principles / standards
- conduct of members of organisation
2
Q
What are members of professional bodies expected to do within an organisation ? P95
A
- Maintain standards of organisation
- behave ethically & professionally
- orgnaisational rules & guidlines - section for professional ethics
3
Q
How does the AAT help accoutants maintain high professionalism ? P95
A
- Publication - code of professional ethics
- Based on international ethics stnadards board for accountants
4
Q
What is the international ethics stanrds board of accountants ? P95
A
- sets global ethical standards
- part of international federation of accountants
5
Q
What type of obligation is compilance with ethical code ? P95
A
- Professional obligation
- not legal obligation
6
Q
What is the code of professional ethics within the AAT designed to do, and what does it specifically state ? P95
A
- Help decision - ethical implication
- outline standard of professional behaviour
- public interests protection
- AAT - good reputation maintenance
7
Q
Who does the AAT code of ethics apply to ? P96
A
- Fellow members
- full members
- affiliate members
- students
8
Q
What are the three consecutive parts that the AAT code of professional ethics have been divided into ? P96
A
- Part A - All members
- Part B - Members in practice
- Part C - Members in business
9
Q
What is a professional accountant required to comply with , and what is this thing’s relationshipo with ethical issues ? P97
A
- 5 fundamental principles
- one Professional ethics issue - affects - number of principles
10
Q
What are the five fundamental principles ? P97
A
Popular People Chat In Offices
Professional behaviour
Professional competence and due care
Confidentiality
Integrity
Objectivity
11
Q
What is integrity ? P97
A
- Quality- Honesty & strong moral principles
- straightforward & honest - professional & business relationships
- non-integral = misleading info association
- resulting no trust
12
Q
What are the three key ethical values contributing to the fundamental principle of integrity ? P97
A
- Honesty
- Transparency
- Fairness
13
Q
What is objectivity ? P98
A
- Decisions making - real facts
- not personal belief / feelings
- bias, conflict, undue influences of others - professional . business judgement
14
Q
What does the principle of objectivity work with ? P99
A
- Independence
- freedom of control/influences of others
15
Q
What is the need for an accountant to appear to be objective ? P100
A
- Addition to objecitvity + independence
- reasonable person:
- independent behaviour
- avoid objectively behaviour into question
16
Q
What is professional competence and due care requirment ? P100
A
- To - professional knowledge and skill maintenance
- competent professional service - developments - pracitce, leiglsation , and techniques
17
Q
What is professional competence ? P101
A
- Requirement - keep up to date
- CPD Regular basis
- reading current information - technical development in profession
- attendance - relevant training courses
18
Q
What is an example of a professional competence need ? P101
A
- international accounting standards , auditing standards, regulatory and statutory requirements
- update technical knowledge- professional body training courses
- failure = error in work , disciplinary action
19
Q
What is due care ? P101
A
- Appropriate carte = quality of work meets high standards
- means - accordance with requirement of tasks: carefully, thoroughly, on timely basis
- assessement:
- importance
- time allowed to complete
- quick , but quality
20
Q
What is confidentiality ? P102
A
- None disclosure - authority / legal duty
- obligation - respect confidentiality:
- client/ employer’s affairs
- employment gained / professional work
21
Q
How must confidential information not be used ? P103
A
- Not used - own personal advantage/ third party - colleague , friend/ family member
- appear to use - not thinking they have
22
Q
How long does confidential info obtained through employment last ? P104
A
After employment
23
Q
When is it acceptable for confidential information to be disclosed ? P104
A
- Authorised - client / employer
- legal disclosure
- professional duty to disclose
24
Q
When a client/ employer gives authority to disclose, what should be made clear
A
- disclaimer:
- intended purpose- e.g. decision making
- info given with no financial reponsibility - yourself/firm
25
What are the two categories that disclosure required by law can be divided into ? P105
* evidence - Court of law
* law broken
*
26
When may disclosure of infromation to give evidence in court be required ? P106
* Witness summons
* provision of documents - court evidence
* appear in court - give evidence
27
What should an accountant do if they've received court summons but their client has not given permission for disclosure? P106
* Disclose
* witness court summons pervails
28
When will an accountant be required to disclose information for an infringement of the law ? P106
* Client / employee breaks law
* e.g. money laundering
29
What is money laundering ? P107
* move illegally acquired cash
* financial systems
* legally acquired appearance
30
What is the act of money laundering in more detail ? P107
* Illegal activity = dirty money
* legitimate trade use/ investment activities
* washing money - clean/ legally obtained
31
What are the circumstances in which the accountant would have a professional duty to disclose information ? P107
* IFAC Quality review
* enquiry response - professional accounting body/ regulatory body
* accountant professional interests - legal proceedings
* technical standards and ethical requirements compilance
32
Why are accountants advised to seek professional / legal advice before disclosing confidential information ? P107
* decision to disclose- professional duty
* Difficult and complex area
33
What are the three points to consider before making a disclosure ? P107
* Facts and evidence - professional judgement
* authoritive recipient and communication
* legal consequence consideration
34
What if an accountant is unsure as to whether they should disclose confidential information and how much they should disclose ? p108
* legal contact- soliticor
* accounting body advice
35
What should an accountant do if there's conflict between confidentiality principle and data protection laws ? PP108
* Do not disclose
* unless legally required
36
What does the principle of professional behavoiour do ? P108
* Required standards of behaviours set out
* guide of achievement
37
What are examples of non-adherence to the professional behaviour principle ? P108
* offensive and inappropriate emails
* professional advice - unethical/ criminal client
38
What usually happens if the accountant fails to adhere to the organisational values and intenral codes of practice ? P109
* Discplinary procedures
* should be formally documented
39
What will the discplinary procedures normally include ? P109
| breach of an organisation's values/ internal codes of practice
* Verbal warning
* written warning
* disciplinary warning
* appeal opportunity
* suspension
* dismissal
40
What will the extent disciplinary action taken depend on, if the accountant breaches an employer's organisational values and internal codes of conduct ? P109
* Brech seriousness
* e.g.gift receiving = verbal warning
* fraud = dismissal
41
What happens if an accountant fails to live by the code of ethics set out by professional accounting bodies ? p109
* Disciplinary action
* individual accounting bodies
* financial reporting council
42
What are the two main categories that misconduct falls into ? P109
| professional behaviour
* Accounting profession - disrepute
* rules and regulation breach - accountant's professional body
43
How do individual accounting bodies in the UK address misconduct ? P109
* Published disciplinary regulations
* implement processes and sanctions - if guilty
* procedure - disciplinary investigation -> decision on guilty of misconduct
44
What penalties can individual accounting bodies in the UK impose on an accountant? P110
| Professional behaviour
* Written undertaking - refrain from repear
* fined sum - upto max
* repirimanded/ severly reprimanded
* ineligible - practicing licence
* practicing licence withdrawal
* membership suspended
* professional accounting body - expulsion
45
What must accountants exercise when making professional judgements ? P110
* Professional secptism
* transaction recordings and financial reporting
46
What does professional sceptism include ? P110
* Questioning mind - question face value
* alert - mistakes - genuine / deliberate
* critical assessment of evidence
47
What does professional sceptism NOT mean ? P110
* Not everything false/ fraud
* vague = further investigatin
* failure = compromise objectivity = fraud and bribery accusation
48
What is fraud defined as ? P111
* Wrongful/ criminal deception
* result = financial / personal gain
49
What does the fraud act 2006 define the three classes of fraud as ? P111
* False representation - misleading representation
* failing to disclose information - non disclosure , legal duty
* abuse of position - safeguard financial interests of other , abuse
50
What does the bribery act 2010 define bribery as ? P111
* Giving , receiving something of value
* influencing recipient
* to do favourable to giver
51
What are the 4 key Bribery act offences ? P111
* Bribing another
* receiving a bribe
* bribing foreign official
* failure to prevent
52
What is the maximum penalty if a person is found guilty for the offence of bribery ? P112
* 10 years imprisonment / unlimited fine
* potential - property confiscation
