Chapter 5 - Principles of professional ethics Flashcards
What is the AAT Code based of?
International ethics standards board for accountants (IESBA)
What do the different parts of the AAT code relate to?
A - all members
B - members in practice
C - members in business
Name the 5 fundamental ethical principles?
Professional behaviour
Professional competence and due care
Confidentiality
Integrity
objectivity
What are the three situations when it is acceptable to disclose confidential information?
When authorised by the client or employer
When disclosure is required by law
When there is a professional duty to disclose
When are the two situations when disclosure of confidential information is required by law?
When the information is required as evidence in a court of law
when the law has been broken and the information has to be disclosed to the relevant authorities
What are the four situations when an accountant has a professional duty to disclose?
To comply with a quality review of an IFAC member body
To respond to an inquiry by the professional accounting body
To protect the professional interests of the accountant in legal proceedings
To comply with technical standards and ethical requirements
What is the definition of fraud?
“Wrongful or criminal deception intended to result in financial or personal gain”
What are the three acts of fraud, as defined by the Fraud Act 2006
Fraud by false representation
Fraud by failing to disclose information
Fraud by abuse of position
What is the definition of bribery
“Giving or receiving something of value with the intention of influencing the recipient to do something favourable to the giver of the bribe”
What are the four key bribery act offences?
Bribing another
Receiving a bribe
Bribing a foreign official
Failing to prevent bribery
What is the penalty for bribery?
10 years imprisonment and/or an unlimited fine
