Chapter 14 - Ethics and regs

Question 1

What does acting in the public interest involve?

Answer 1

Regard to the legit interests of:
- Clients
- Governments
- Financial institutions
- Employees
- Investors

Question 2

What are UK auditors subject to?

Answer 2

FRC ethical standard

Question 3

What is independence of mind?

Answer 3

Expressing a conclusion without being affected by influences that compromise professional judgement

Question 4

What is independence in appearance?

Answer 4

Avoidance of facts and circumstances that would compromise integrity, objectivity or professional skepticism

Question 5

What is the 6th threat identified by FRC ethical standards?

Answer 5

Management threat - involves accountant carrying out work that management should’ve

Question 6

What are the 2 categories of safeguard identified by IESBA code?

Answer 6

Created by profession, legislation and regulation

Created by work environment

Question 7

What is an example of a safeguard created by profession, legislation and regulation?

Answer 7

Training and development

Question 8

What is an example of a safeguard within a work environment?

Answer 8

Additional review