Chapter One Flashcards
What are ethics?
Moral principles that guide behaviour
What are ethical values?
Assumptions about what is right and wrong
What can organisations devise for their employees?
Ethical codes and codes of conduct
Accountants work for whose interest?
The publics
What are the objectives of the accountancy profession?
Master skills Have a ethical approach Acknowledgement of duties to society Objective outlook Rendering services to high standards Achieving acceptance by public
Why behave ethicaly?
For public confidence
Law
Regulations
Reputation
What are the fundamental ethical principles?
Integrity Objectivity Professional competence and due care Confidentiality Professional behaviour
What have the AAT released in relation to ethics?
Code of Professional Ethics
What are the steps in the conceptual framework?
- Identify the threat to the fundamental principle
- Evaluate threat
- Safeguards
- If safeguards cannot be applied discontinue
What does a principles based approach encourage?
Case by case judgement
What is criminal law?
Affects whole community
Punished by fines or prison
What is civil law?
Conflict in the community
No punishment
What other laws are accountants affected by?
Health and Safety
Employment protection and equality
Data protection
The UK accountancy profession is self regulatory, true or false?
True
Who are the Financial Reporting Council?
Regulators to the accountancy and actuarial profession
What are the FRC responisble for?
Issuing standards for corporate governance and reporting
What are the aims of the FRC
Promote ethical financial reporting
Who are the International Federation of Accountants?
International body representing major accountancy bodies.
What do the IFAC develop?
The IESBA code of ethics which is used by professional accountancy bodies worldwide.
How many members does the Consultative Committee of Accountants have?
5
What are the aims of the Consultative Committee of Accountants?
Coordinate the profession in the UK and Ireland
What is a code conduct designed to do?
Influence behaviour of employees
What is a code of practice?
A guide adopted by a profession to regulate its members
What is meant by sustainability?
Meet the needs of the present without compromising the ability of future generations
