4 - I: Members in business, other members

Question 1

Define members in business (MIBs).

Answer 1

Members who are “employed or engaged on a contractual or volunteer basis in a(n) executive, staff, governance, advisory, or administrative capacity in such areas as industry, the public sector, education, the not-for-profit sector, and regulatory or professional bodies.”

Question 2

MIBs: what is the application of independence rules?

Which rules do they need to follow?

Answer 2

Don’t need to worry.

Objectivity, integrity, etc.

Question 3

MIBs: What are 6 threats that apply? What doesn’t apply to MIBs?

Answer 3

Adverse interest threats, advocacy, familiarity, self-interest, self-review, undue influence.

Management participation threats.

Question 4

Safeguards are derived from which sources for MIBs?

Which doesn’t apply to MIBs that applies to MIPs?

Answer 4

The profession, legislation or regulation.
The employer.

The client.

Question 5

Integrity and objectivity: handling of gifts?

Answer 5

Don’t accept gifts that violate the law or policies.

Don’t accept if they are not reasonable in the circumstances.

Question 6

General standards for MIBs?

Answer 6

Professional competence.
Due professional care.
Adequately plan and supervise.
Sufficient relevant data.

Question 7

What are other members (OMs)?

Answer 7

CPA who are: unemployed, retired, not working in the profession.

Question 8

What rules applies to OMs?

Answer 8

Discreditable acts.