Ch 9 - Professional Ethics

Question 1

What is the main source of ethical guidance?

Answer 1

International Federation of Accountants Code of Ethics (IFAC CoE)
ICAEW CoE
FRC Ethical Standard (replaces ethical standards are auditors)

Question 2

What are the ethical principles from IFAC Code of Ethics?

Answer 2

Integrity
Objectivity
Confidentiality 
Professional competence and due care 
Professional behaviour

Question 3

What are the key threats to objectivity and independence acc to FRC Ethical standards?

Answer 3

Self-interest
Self-review
Familiarity
Long association
Intimidation
(Management)

Question 4

What is the management threat?

Answer 4

Take on role of man rather than auditor
When persons conducting the service may become closely aligned with the views/interests of management
May arose the distinction between firm and entity
Creates a question of whether a person can apply a proper degree of professional scepticism