Ethical 1 Professional issues

Question 1

What is Competence?

Tell me reasons why you may not be competent?

Answer 1

Competent is being up to date with the latest skills to make sure you can deliver high quality services

Reasons why:

Not enough time, information, experience, training and resources

Question 2

What is objectivity?

Answer 2

Avoid being biased, avoiding conflict of interest and acting in fairness

Question 3

What is the main cause of not being objective and provide 3 examples?

Answer 3

Self interest

Examples :- Profit related bonus
Share Options
Upcoming takeover/sale

Question 4

What IAS is Presentation of Financial statement?

Answer 4

IAS1

Question 5

Financial Statement should be presented fairly

True or False

Answer 5

True

Question 6

Some transactions can be faithfully represented in a financial statement. It does not have to be all all transactions.

True or False

Answer 6

False.

All transactions in a financial statement should be presented faithfully.

Question 7

How can a financial statement be presented fairly?

Give me three ways

Answer 7

1) Follow IFRS
2) Compliance with IFRS - disclosure and all IFRS
3) If wrong or inappropriate accounting is used - overcome by disclosure

Question 8

What are the exception for not following IFRS?

Answer 8

If it would be misleading and not useful for a wide range of users.

Question 9

What are accounting profession expected to be?

Answer 9

1) Highly Competent
2) Reliable
3) Objective
4) High degree of professional integrity

Question 10

What are the fundamental principles?

Answer 10

1) Confidential
2) Objective
3) Professional Competence
4) Professional behaviour
5) Independence

COPPI

Question 11

What is Professional behaviour?

Answer 11

Not do anything that discredit the profession.

Question 12

When is it acceptable to change accounting policies such as depreciation and revaluation?

Answer 12

If it is more relevant and reliable info