Chapter13- Ethics

Question 1

Integrity

Answer 1

To be straightforward and honest in all professional and business relationships

Question 2

Objectivity

Answer 2

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

Question 3

Professional competence and due care

Answer 3

To maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional services based on current developments in practice, legislation and techniques and act diligently and in accordance with applicable technical and professional standards

Question 4

Confidentiality

Answer 4

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

1) not to disclose any such information to third parties without proper and specific authority unless there is a legal or professional right or duty to disclose
2) nor use the information for the personal advantage of the chartered accountant or third parties

Question 5

Professional behaviour

Answer 5

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

Question 6

What are the 5 fundamental principles ?

Answer 6

1. Integrity
2. Professional competence and due care
3. Confidentiality
4. Objectivity
5. Professional behaviour

Question 7

Application of principle of integrity

Answer 7

Not knowingly associated with reports, returns, communication and any information that

1) is materially false & misleading statement
2) contains statement or information furnished recklessly
3) omits or obscures information where such omission or obscurity is misleading

Question 8

Application of principle of objectivity

Answer 8

A chartered accountant shall not perform a professional service or activity if a circumstance or relationship biases or unduly influences the accountant’s professional judgement with respect to that service

Question 9

Professional competence may be divided into two separate phases;

Answer 9

1) attainment of professional competence

2) maintenance of professional competence

Question 10

Professional competence application

Answer 10

1) continuing professional development activities
2) appropriate training and supervision of junior staff
3) making clients aware of inherent limitations of the service

Question 11

Confidentiality application

Answer 11

This principle applies even within firm, social environment, to ex-clients and to prospective clients

Question 12

Exception to rule of confidentiality

Answer 12

1) it is required by law
2) authorised by the client
3) it is professional duty or right to disclose
a) QCR program
b) inquiry or investigation
c) professional interests in legal proceedings

Question 13

Categories of threats

Answer 13

1) Self-review
2) Self-interest
3) advocacy
4) familiarity
5) intimidation