Ethics Flashcards
5 Fundamental principles
Professional behaviour
Professional competence and due care
Objectivity
Integrity
Confidentiality
6 Threats to fundamental principles
Familiarity
Advocacy
Self interest
Self review
Intimidation
Management
5 Standards for PCRT
Client specific
Lawful
Disclosure and transparency
Tax planning arrangements
Professional judgement and appropriate documentation
Responsibility, Role, Risk of an agent
Client retains responsibility
Prepares documents on a client’s behalf
Low risk
Responsibility, Role, Risk of a principal
Responsible for advice given
Provides advice on tax consequences
High risk
Included in an engagement letter
Whether acting as an agent or principle, should be one covering each separate relationship
6 Data Protection Act principles
Lawfulness, fairness and transparency
Purpose limitation
Data minimisation
Accuracy
Storage limitation
Integrity and confidentiality
PCRT precautions
Physically secure computers
Passwords kept safe from unauthorised use
Report unusual activity to HMRC immediately
Suspicious emails from HMRC sent to their phishing team
PII regulations
If gross fee income is less than £800,000: 2.5x their income (minimum og £250,000)
Otherwise: £2 million
Responsibilities regarding client submitting inaccurate tax return
Seek client authority to advise HMRC - engagement letter
Warn client of possible legal consequences
Cease to act if refuse to disclose
Keep written records of all correspondence
6 anti-money laundering procedures an accountancy practice must adopt
Register with appropriate supervisory body
Appoint MLRO
Implement internal reporting procedures
Train staff on internal procedures
Verify identity of all new clients and keep identification 5 years after end of engagement
Maintain records of all transactions up to 5 years
