Business Awareness

Question 1

Name the 6 PESTLE factors

Answer 1

Political
Economic
Social
Technological
Legal
Environmental

Question 2

Name the 5 fundamental ethical principles

Answer 2

Integrity
Objectivity
Professional Competence and Due Care
Confidentiality
Professional Behaviour

Question 3

What is professional behaviour?

Answer 3

Being professional at all times, complying with relevant law and behaving ethically at all times

Question 4

What is Professional competence and due care?

Answer 4

Being capable to do the task and maintaining professional knowledge at the level required through Continuing Professional Development (CPD)

Question 5

What is Confidentiality?

Answer 5

Keeping information confidential - GDPR
Not using information gained through work for personal gain.

Question 6

What is Integrity?

Answer 6

Being honest, transparent and fair

Question 7

What is Objectivity?

Answer 7

Acting without bias or conflict of interest

Question 8

What are the 5 threats to the fundamental ethical principles?

Answer 8

Advocacy
Self Interest
Self Review
Intimidation
Familiarity

Question 9

What is Advocacy threat?

Answer 9

When a member promotes an opinion or position to the point where objectivity may be compromised

Question 10

What is self interest threat?

Answer 10

Where a financial or other interest will influence the members judgement or behaviour

Question 11

What is self review threat?

Answer 11

When a previous judgement needs to be re-valued by the member responsible for the judgement

Question 12

What is intimidation threat?

Answer 12

When a member is threatened or deterred from acting objectively

Question 13

What is familiarity threat?

Answer 13

Becoming too sympathetic to the interest of others due to the close or personal relationship with them

Question 14

Which ethical principle does self interest affect?

Answer 14

ALL OF THEM
integrity
objectivity
professional competence & due care
confidentiality
profession behaviour

Question 15

Which ethical principle does familiarity affect?

Answer 15

ALL OF THEM
integrity
objectivity
professional competence & due care
confidentiality
profession behaviour

Question 16

Which ethical principle does intimidation affect?

Answer 16

integrity
objectivity
confidentiality

Question 17

Which ethical principle does self review affect?

Answer 17

objectivity
professional behaviour
professional competence & due care

Question 18

Which ethical principle does advocacy affect?

Answer 18

Only objectivity

Question 19

Which threat could integrity be affected by?

Answer 19

self interest
familiarity
intimidation

Question 20

Which threat could objectivity be affected by?

Answer 20

ALL OF THEM
self interest
advocacy
self review
intimidation
familiarity

Question 21

Which threat could professional behaviour be affected by?

Answer 21

self interest
familiarity
self review

Question 22

Which threat could professional competence & due care be affected by?

Answer 22

self interest
familiarity
self review

Question 23

Which threat could confidentiality be affected by?

Answer 23

self interest
familiarity
intimidation

Question 24

What are the 3 stages of money laundering?

Answer 24

Placement
Layering
Integration

Question 25

What is the placement stage of money laundering?

Answer 25

moving "dirty" money into legitmate sources of income e.g. false invoices

Question 26

What is the layering stage of money laundering?

Answer 26

repeatedly moving the placed money withing financial systems e.g. buying and selling new assets

Question 27

What is the integration stage of money laundering?

Answer 27

extracting the clean money e.g. putting fake people on the payroll

Question 28

What is defined as "the wrongful or criminal deception intended to result in financial or personal gain?

Answer 28

Fraud

Question 29

What are the 3 classes of fraud?

Answer 29

False reprensentation - giving misleading information Failing to disclose information Abuse of position

Question 30

What are the 4 key offences for bribery?

Answer 30

bribig another receiving a bribe bribing a foreign official failing to prevent bribery

Question 31

What are the 3 categories of offences for money laundering?

Answer 31

Laundering Failure to report Tipping off

Question 32

What should an accountant do if they believe someone is money laundering?

Answer 32

Report to the MLRO (money laundering reporting officer) if there is one Make a SAR (suspicious activity report)

Question 33

What should an internal SAR (suspicious activity report) include

Answer 33

identity of the suspect information about the suspicion of laundering where the suspicious money is held details of the person making the report

Question 34

What is the punishment for an accountant considered to be guilty of money laundering? What is the exception?

Answer 34

an unlimited fine and up to 14 years in prison if they have correctly made an external SAR this will provide full immunity

Question 35

What is punishment for failure to report

Answer 35

5 years imprisonment and/or an unlimited fine

Question 36

What is the punishment for tipping off?

Answer 36

5 years imprisonment and/or an unlimited fine