Chapter 14: Codes of professional ethics and regulatory issues

Question 1

What are the 3 codes and standards and who do they apply to?

Answer 1

• IESBA code- Applies to all accountants
• ICAEW- applies t all ICEAW members and trainees.
• FRC Ethical standards- Applies to all UK auditors

Question 2

What are the Fundemental ethical principles?

Answer 2

1) Professional competence and due care
2) Integrity
3) Professional behaviour
4) Confidentiality
5) Objectivity

Question 3

What are the threats to independence under IESBA?

Answer 3

Advocacy
Self-interest
Self-review
Intimidation
Familiarity

Question 4

What are the threats to independence under FRC?

Answer 4

Management
Advocacy
Self-interest
Self-review
Intimidation
Familiarity

Question 5

To avoid familiarity threat, how often should an engagement partner rotate?

Answer 5

If listed Every 5 years and If not, then evert=y 10 years (No return for 5 yrs)