Business Awareness Flashcards
Name the 6 PESTLE factors
Political
Economic
Social
Technological
Legal
Environmental
Name the 5 fundamental ethical principles
Integrity
Objectivity
Professional Competence and Due Care
Confidentiality
Professional Behaviour
What is professional behaviour?
Being professional at all times, complying with relevant law and behaving ethically at all times
What is Professional competence and due care?
Being capable to do the task and maintaining professional knowledge at the level required through Continuing Professional Development (CPD)
What is Confidentiality?
Keeping information confidential - GDPR
Not using information gained through work for personal gain.
What is Integrity?
Being honest, transparent and fair
What is Objectivity?
Acting without bias or conflict of interest
What are the 5 threats to the fundamental ethical principles?
Advocacy
Self Interest
Self Review
Intimidation
Familiarity
What is Advocacy threat?
When a member promotes an opinion or position to the point where objectivity may be compromised
What is self interest threat?
Where a financial or other interest will influence the members judgement or behaviour
What is self review threat?
When a previous judgement needs to be re-valued by the member responsible for the judgement
What is intimidation threat?
When a member is threatened or deterred from acting objectively
What is familiarity threat?
Becoming too sympathetic to the interest of others due to the close or personal relationship with them
Which ethical principle does self interest affect?
ALL OF THEM
integrity
objectivity
professional competence & due care
confidentiality
profession behaviour
Which ethical principle does familiarity affect?
ALL OF THEM
integrity
objectivity
professional competence & due care
confidentiality
profession behaviour
Which ethical principle does intimidation affect?
integrity
objectivity
confidentiality
Which ethical principle does self review affect?
objectivity
professional behaviour
professional competence & due care
Which ethical principle does advocacy affect?
Only objectivity
Which threat could integrity be affected by?
self interest
familiarity
intimidation
Which threat could objectivity be affected by?
ALL OF THEM
self interest
advocacy
self review
intimidation
familiarity
Which threat could professional behaviour be affected by?
self interest
familiarity
self review
Which threat could professional competence & due care be affected by?
self interest
familiarity
self review
Which threat could confidentiality be affected by?
self interest
familiarity
intimidation
What are the 3 stages of money laundering?
Placement
Layering
Integration
What is the placement stage of money laundering?
moving “dirty” money into legitmate sources of income
e.g. false invoices
What is the layering stage of money laundering?
repeatedly moving the placed money withing financial systems
e.g. buying and selling new assets
What is the integration stage of money laundering?
extracting the clean money
e.g. putting fake people on the payroll
What is defined as “the wrongful or criminal deception intended to result in financial or personal gain?
Fraud
What are the 3 classes of fraud?
False reprensentation - giving misleading information
Failing to disclose information
Abuse of position
What are the 4 key offences for bribery?
bribig another
receiving a bribe
bribing a foreign official
failing to prevent bribery
What are the 3 categories of offences for money laundering?
Laundering
Failure to report
Tipping off
What should an accountant do if they believe someone is money laundering?
Report to the MLRO (money laundering reporting officer) if there is one
Make a SAR (suspicious activity report)
What should an internal SAR (suspicious activity report) include
identity of the suspect
information about the suspicion of laundering
where the suspicious money is held
details of the person making the report
What is the punishment for an accountant considered to be guilty of money laundering? What is the exception?
an unlimited fine and up to 14 years in prison
if they have correctly made an external SAR this will provide full immunity
What is punishment for failure to report
5 years imprisonment and/or an unlimited fine
What is the punishment for tipping off?
5 years imprisonment and/or an unlimited fine
