BUAW Questions/Key points Flashcards
5 threats to the principles
1 - self-interest
2 - self-review
3 - intimidation
4 - familiarity
5 - advocacy
2 principles threatened when you act for two clients in competition
Objectivity - hard to remain objective to both clients
Confidentiality - risk of breaching confidential info about the other
2 principles threatened if asked to change something you know to be incorrect for an advantage
Integrity - not being truthful
Objectivity - biased toward the person persuading you
If Jim works in practice and has been assigned manager on a job which he holds shares in, what threat does he face and what should he do?
This is a self-interest threat as it would benefit him if the company performed well. He should declare any intent and remove himself from the job.
What is the legal status of an internal ethical code in a firm?
An ethical code is NOT a legal obligation and has no legal status so cannot be imposed on suppliers
What are the 3 stages of money laundering?
1 - placement - most vulnerable stage. Placing the illegal funds into a bank account and so placing it into the financial system.
2 - layering - multiple complex transactions to distance the funds from the original fraud.
3 - integration - where the criminal benefits. Could invest in a business or buy real estate,
Who would the MLRO send an SAR to?
National Crime Agency
Who can bring disciplinary action?
AAT and your employer (NCA cannot)
benefit of being a limited company over a partnership
Limited liability/debts to shares/ownership (easier to attract shareholders)
- companies must comply with companies house and make accounts public, partnership regulations more relaxed.
Companies pay corporation tax on the company’s profits, partnerships, the profits are shared according to the profit share and individuals charged income tax on it.
3 money laundering offences
concealing, arrangement, acquiring criminal property. Failure to report - up to 5 years in prison and/or unlimited fine.
Tipping off
2 years and or fine
According to AAT CPD cycle, how often should it be done?
Twice a year - assess, plan, action, evaluation.
What are the four offences under the Bribery Act?
1 - bribing someone to do something for a benefit
2 - Accepting or requesting a bribe
3 - Use a bribe to influence foreign officials for an advantage
4 - Fail to prevent a bribe on behalf of a COMMERCIAL ORGANISATION
Bribery penalties
Individuals = 10 years
Comm organisations = unlimited fine
Bribery - could they be guilty?
Depends on whether there were adequate anti-bribery procedures in place. e.g failing to prevent by not having them in place.
