Safeguards And Situations Which May Cause Problems

Question 1

What is the first line of defence against unethical conduct?
What should professional accountants and senior roles do?
What should be second nature?
What will be in place for all employees?
What must they ensure this does not?
What can be monitored for concerns of ethics?

Answer 1

Sound internal control system 
Continuously review to ensure they are fit for purpose 
Compliance 
Code of conduct 
Conflict IESBA 
Public feedback and complaints

Question 2

What are the situations which may cause problems?(4)

Answer 2

Conflicts of interest
Financial interests
Gifts and hospitality
Insider information

Question 3

Conflicts of interest
Why should you do if one arises?
How can you do this?
What may happen if you devolve to a subordinate?
In what case may you have to resign?

Answer 3

Remove the cause
Remove self from the activity and pass to a colleague
May put them under pressure
If there is an extreme conflict of interest fostered by intimidation

Question 4

Financial interests
What are they often easily? Eg?
Who may it from rather than accountant them-self?

Answer 4

Avoided, eg selling shares

Their friend or family

Question 5

Gifts and hospitality
What should you do if your offered gifts or hospitality?

Bribery Act 2010
What is bribery?
It is an offence to?
What does it both apply to?
What does it include?

Answer 5

Report it to your superiors and consider whether it would appear acceptable to an impartial observer to accept

When an individual offers, gives or promises a financial or other advantage to another individual in exchange for them improperly performing a relevant function or activity
Offer or accept
Public and private sector
Activities outside the uk

Question 6

Insider information
What does this relate to?
What must care be taken to?

Answer 6

Using knowledge not yet in public domain for personal advantage
Not leak information