8: Accountancy Profession Flashcards
What is a profession, what is accountancy profession?
Occupational area that involves prolonged training leading to a formal qualification
Accountancy profession: assurance about financial information that helps resource allocation decisions
Key to maintaining effective working of capital markets and upholding the public interest
Two areas where accountants can work?
Public practice (a firm)
Business (industry)
What are the four reserved areas that must be undertaken by public practice?
Insolvency
Investment business
Audit
Probate
How must accountants working in business behave?
Still expected to uphold principles
- professional competence and due care
Need to be able to form reasoned judgements in all work
What are the three basic aspects of an accountant’s work?
Maintaining control and safeguarding assets
Financial management
Financial reporting
What are the five in which accountants can support with climate change?
Gather info required for mandatory reporting
Make sure regulations are complied with
Ensuring enviro taxes are paid
Enabling businesses to access green grants
Producing audits of sustainability
Every other way is ‘assist’
How to accountancy bodies work?
Consultative Committee of Accountancy Bodies (CCAB)
- includes five major accountancy bodies
International Federation of Accountants (IFAC)
- international standards
What bodies give you chartered status?
ICAEW
ICAS
ICA Ireland
Other bodies:
ACCA
CIMA
CIPFA
AAT
What are the four methods of regulation?
Direct government regulation via legislation
Separate government agency via delegated legislation
Self-regulation by the industry/profession
Combo of above
What is the FRC?
Financial Reporting Council
Has statutory powers delegated to it by the government (although gov still has overall responsibility)
What are the two committees of the FRC?
Conduct Committee
- oversight
- discipline
- corporate reporting review
- audit quality review
Codes and Standards Committee
- actuarial policy
- accounting and reporting policy
- audit and assurance
- corporate governance
What are the three main roles of the FRC’s Professional Oversight team?
Non-statutory oversight
- matters not relating to statutory audits
Statutory regulation
- registration, monitoring and disciplining auditors
Independent monitoring
- related to major PIEs
What is ethics and ethical behaviour?
Behaviours that are acceptable in society
Acting in a manner that is acceptable
How is technical competence ensured?
Training and education for admission to ICAEW
Requirements of ongoing membership
