chapter 4 Ethics (Task 3)

Question 1

Fundamental principles

Answer 1

Integrity
Objectivity
Professional competence and due care
Confidentiality
Professional behaviour

Question 2

Integrity

Answer 2

straightforward and honest in all professional and business relationships

Question 3

Objectivity

Answer 3

no bias, conflict of interest or undue influence of others to override professional or business judgements

Question 4

Professional competence and due care

Answer 4

continuing duty to maintain professional knowledge and skill at the required level,

acting diligently and in accordance with applicable technical and professional standards when providing professional services

Question 5

confidentiality

Answer 5

respect confidentiality of information acquired as a result of professional and business relationships unless there is a legal or professional right or duty to disclose

Question 6

professional behaviour

Answer 6

comply with relevant laws and regulations and avoid any action that brings our profession into disrepute

Question 7

AAT guidelines on why you should act ethically

Answer 7

compliance with law and regulation
maintain the reputation and standing of the AAt
protection of public interest

Question 8

two most common types of fraud

Answer 8

misappropriation of assets
intentional misrepresentation of the financial statements

Question 9

Financial statements

Answer 9

true and fair
information to be presented fully, honestly and clearly
true nature of transactions must be shown and prepared in accordance with the accounting practice

Question 10

Threats to independence

Answer 10

gifts, financial interests, familarity, conflict of interest, intimidation

Question 11

Threats to ethics

Answer 11

self-interest
self-review
familiarity
intimidation
Advocacy - speak on behalf of someone else and seen to be promoting them or their business

Question 12

Confidentiality - disclosure

3 things

Answer 12

Disclosure is permitted by law - authorisation from client or employer

Disclosure is required by law - production of documents or other provision of evidence in the course of legal proceedings or to the appropriate public authorities (HMRC for example)

Where there is a professional duty or right to disclose , which is in the public interest, and is not prohibited by law such as to respond to an inquiry or investigation by AAT or a relevant regulatory or professional body