Chapter 1

Question 1

How can businesses show and develop ethical values?

Answer 1

• on corporate mission statements
• objectives
• internal working practices
• products they supply

Question 2

Name the four personal outlooks that determine a persons approach to ethics. (can you also explain what they are)

Answer 2

• Ethical egotist - looks to maximise personal outcomes
• Pluralist - looks for outcomes benefitting everyone
• Relativist - looks at context and are prepared to be flexible and pragmatic
• Absolutists - looks at the fundamental correctness of a course of action (tends to be guided by the law)

Question 3

Who are the sub bodies of the FRC? (Financial Reporting Council)

Answer 3

Codes and standards committee

Conduct Committee- monitors supervisory boards

Question 4

What are the three separate councils of the codes and standards committee

Answer 4

• audit and assurance council
• corporate reporting council
• actuarial council

Question 5

What are the three separate committees of the conduct committee

Answer 5

• corporate reporting review committee
• audit quality review committee
• case management committee - deals with disciplinary cases

Question 6

Who globally regulates the accounting professions?

Answer 6

IFAC - International federation of accountants

Question 7

What five key areas are covered by IFACs code of ethics? (PIPCO)

Answer 7

• Professional behaviour
• Integrity
• Professional competence and due care
• Confidentiality
• Objectivity

Question 8

What is IFACS role in regulation?

Answer 8

Ensuring consistent minimum standards in areas:

• Education
• Examinations
• Experience

Question 9

What are the seven principles of public life?

Answer 9

• Leadership - respect other principles
• Honesty - conflicts of interest must be declared
• Objectivity - appmnts & contracts awarded on merit
• Accountability - Responsible for own actions
• Integrity - avoid actions influencing decision making
• selflessness - always act solely in public interest
• Openness - Info must always be available

Question 10

What words are associated with a rules based approach?

Answer 10

*mandatory *obedience *explicit *fear-driven *law based *detection *rules

Question 11

What words are associated with a framework based approach?

Answer 11

*Discretionary *Judgement *Implicit *Values driven *Principles based *Prevention *Principles (values)