Ch 2. Ethics and Professional

Question 1

ACCA Code of ethics (5)

Answer 1

• Competence and due care
• Objectivity
• Professional Behavior
• Integrity
• Confidentiality

Question 2

Integrity

Answer 2

Members should be straightforward and honest in all professional relationships

Question 3

Objectivity

Answer 3

Should not allow bias, conflicts of interest of undue influence to override professional judgement

Question 4

Competence and due care

Answer 4

• Maintain professional knowledge and kill to deliver a competent professional service based on current developments in practice.
• Act diligently in accordance with technical standards.

Question 5

Confidentiality

Answer 5

Do no disclose information required as a result of business relationships without proper authority unless there is a legal/professional duty to do so.

Question 6

Professional behaviour

Answer 6

Comply with relevant laws and regs and avoid actions that discredit the profession

Question 7

Professional threats (6)

Answer 7

• Advocacy (promoting share issue in audit client)
• Self-interest (dependence on fees from one client)
• Self-review
• Familiarity (acting as auditor for a company where you have non-business ties)
• Management (making decisions/advice)
• Intimidation (Threat of auditor removal)