3 - CPC for Professional Accountants

Question 1

if you become aware of a CPC breach

Answer 1

• address consequences asap

- determine whether to report it

Question 2

fundamental principles of CPC?

Answer 2

Confidentiality
Objectivity
Professional behavior
Professional competence and due care
Integrity

Question 3

integrity?

Answer 3

• straightforward, honest, fair dealing
• not knowingly being associated w info you believe is materially false, provided recklessly, misleadingly omits info unless you disassociate yourself when you become aware

Question 4

objectivity?

Answer 4

• not compromising judgement bc of bias, conflict of interest, undue influence of others
• not undertaking professional activity if your judgement is influenced by circumstance/relationship

Question 5

professional competence and due care?

Answer 5

• attaining professional knowledge and skill to remain comp based on professional standards and legislation
• avoiding engagements you’re not competent to perform
• act diligently in accordance w standards
• make clients aware of your limitations

Question 6

confidentiality?

Answer 6

• respecting confidentiality of info from professional and business relationships
• avoiding inadvertent disclosure to a bus associate/family member
• not using conf info to benefit yourself

Question 7

when is disclosure permitted?

Answer 7

• required by law
• authorised by client/org
• there is a prof duty/right to disclose

Question 8

professional behavior?

Answer 8

• complying w laws/regs

- avoiding conduct that could discredit the profession

Question 9

categories of threat?

Answer 9

self-interest
self-review
advocacy
familiarity
intimidation

Question 10

self-int threat?

Answer 10

the threat that a financial/other interest may inappropriately influence a professional acc’s judgement/behavior

Question 11

self-review threat?

Answer 11

the threat that an accountant will not properly evaluate the results of a previous judgement made

Question 12

advocacy threat?

Answer 12

the threat that a pro-acc will promote a client/employing org’s position to the point that the acc’s objectivity is compromised

Question 13

familiarity threat?

Answer 13

the threat that due to a long/close relationship w client/org, the acc will be too sympathetic to their interests/accepting of their work

Question 14

intimidation threat?

Answer 14

the threat that the acc will be deterred from acting obejctively because of actual/perceived intimidation/pressure, incl attempts to exercise undue influence over acc