Ethics Flashcards
Who sets the ethics standards for professional accountants worldwide?
The International Ethics Standards Board for Accountants (IESBA)
What are the threats to the fundamental principles?
Self interest - becoming better off of a result
Self review - checking own work
Advocacy - Client representation
Familiarity - family connection
Intimidation - compliance from force
What are the fundamental principles (IBCOP)?
IBCOP
Integrity - Be straightforward and honest
(Professional) Behaviour - comply with all relevant laws and regs
(Professional) Competence and due care - Maintain professional knowledge and skill.
Objectivity - avoid bias and conflict of interest
Confidentiality
What safeguards are in place to nullify threats?
Education/training
CPD
Corporate Governance rules
Professional standards (ICAEW)
Regulators
External review
What does PCRT stand for?
Professional Conduct in Relation to Taxation
What further standards have the PCRT introduced?
Client specific
Lawful
Disclosure and transparency
Advising on tax planning arrangements
Professional judgement and appropriate documentation
What factors should be considered when resolving conflict?
Relevant facts
Relevant parties
Ethical issues involved
Fundamental principles related to matter in question
Established internal procedures
Alternative courses of action
When should information be disclosed?
Authorised by client/employer
By law under anti-money laundering legislation
Professional duty /right to disclose
Is tax evasion legal or illegal?
Illegal
What is tax evasion?
Suppressing information to which HMRC is entitled
Providing HMRC with deliberately false information
What are the penalties related to money laundering?
Up to 14 years for the main offences
Up to 5 years for the failure to report an offence
Up to 2 years for tipping off offences
Is tax avoidance legal or illegal?
Legal
Advisors should only promote avoidance in spirit of the law
