Chapter 19

Question 1

What’re the 5 fundamental principles?

Answer 1

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

Question 2

Describe integrity

Answer 2

To be straightforward and honest in all professional and business relationships

Question 3

Describe objectivity

Answer 3

To not allow bias, conflict of interest or undue influence to override professional or business judgments

Question 4

Describe professional competence and due care

Answer 4

To maintain professional knowledge and still at level required to ensure that a client or employee receives competent professional service based on current developments in practice

Question 5

Describe Confidentiality

Answer 5

To respect the confidentiality of information acquired as a result of professional and business relationships

Question 6

Describe professional behaviour

Answer 6

To comply with relevant laws and regulations and avoid any action that discredits the profession.

Question 7

Where did the 5 fundamental principles derive from?

Answer 7

The code of ethics for professional accounting issues by the international ethics standards board of Accountants (IESBA)

Question 8

To comply with the principle of objectivity a member must avoid what?

Answer 8

Relationships which bias or unduly influence their professional judgement