Ethics Flashcards
What are ACCA’s five fundamental principles of professional ethics?
Confidentiality Objectivity Professional behaviour Integrity Technical competence & Due care
Explain the term Confidentiality
.Respect the confidentiality of information
.Must not disclose client information to third parties
.Confidential info shall not be used to personal advantage
Explain the term “Objectivity”
Members should not allow bias, conflicts of interest to compromise their professional judgement
Explain the term professional behaviour
Members shall comply with the regulations and laws to avoid actions that may discredit the profession.
ACCA: members shall behave with courtesy and consideration
Explain the term integrity
Members shall be straightforward and honest in all professional and business relationships
Explain the term technical competence &a due care
Members have a continuing duty to maintain professional knowledge and skill at a level required to ensure that clients or employers receive competent professional service
Name the 5 perceived threats to the fundamental principles of professional ethics
.Self interest .Self review .Advocacy threat .Familiarity .Intimidation
When does the self interest threat occurs?
When a firm or a member of the assurance team has some financial or other interest in an assurance client
When does the self review occurs?
When a previous judgement needs to be re-evaluated by members responsible for that judgement
When does the Advocacy threat occurs?
When members promote a position or opinion to the point that subsequent objectivity may be compromised
When does the Familiarity threat occurs?
When a member has a close relationship and become too sympathetic to the interests of others
When does the Intimidation threat occurs?
When members are deterred from acting objectively by threats
Explain in bullet points the external auditors responsibilities in relation to the prevention and detection of fraud and error
.
The auditor’s responsibilities relating to fraud in an audit of financial statements are sets out in ISA 240.
The auditor’s responsibilities relating to fraud in an audit of financial statements are sets out in ISA 240.
