CH19- Fundamental principles

Question 1

Fundamental principle

Answer 1

Professional comp and due care
Integrity
Professional behaviour
Confidentiality
Objectivity

Question 2

Issued by

Answer 2

Principles are derived from code of ethics of prof accountants issue by IESBA (International ethics standards board of accountants)

Question 3

Prof comp and due care

Answer 3

Important to define scope of the engagement and document any changes
If more than one tenable interpretation, different conclusions may be reached for different clients depending on circumstances

Question 4

Confidentiality

Answer 4

Defend against criminal charge or clear himself of suspicion
Defend in disciplinary proceedings
Resist proceedings in respect of a taxation offence, where suggested that member knowingly engaged in dishonest conduct
Resist a legal action made again him by client or 3rd party
Enable him to sue for unpaid fees
Enable him to sue for defamation

Question 5

Prof behaviour

Answer 5

Courtesy and consideration
Consider reputational impact of tax arrangements with which member is associated
Important to keep own tax affairs up to date