Ethics and ICAEW

Question 1

5 Fundamental Principles

Answer 1

Integrity, Objectivity, Professional Behaviour, Professional Competence and Due Care, and Confidentiality

Question 2

Professional Behaviour vs Professional Competence

Answer 2

Complying with relevant laws and regulations vs maintaining professional knowledge and skill

Question 3

ICAEW Safeguards

Answer 3

• Educational, training and experience requirements for entry into the profession
• The continuing professional development requirements
• The ICAEW Code
• The complaints procedures available within your firm and or ICAEW

Question 4

what are the anti-money laundering procedures that should be in place?

Answer 4

• train staff to ensure they are aware of the relevant legislation and how to recognise money laundering
• have an MLRO
• carry out customer due diligence on any new client to ensure that the client is known and establish areas of risk
• verify the identity of new clients
• maintain records of any transactions undertaken for or with the client

Question 5

how should a client admitting to breaching tax rules be approached?

Answer 5

• recommend the client to disclose the figures to HMRC or to give authorisation for the tax advisor to disclose
• set down in writing the likely consequences of the failure to disclose
• no duty to disclose yet so do not inform HMRC

Question 6

what actions should be taken if a client refuses to authorise full disclosure of breaching tax rules?

Answer 6

• cease to act for client
• inform in writing to client and HMRC
• consider whether a money laundering report should be made

Question 7

What are the ICAEW’S Professional Indemnity Insurance Regulations?

Answer 7

• Minimum cover is:
  £100,000
  2.5 times fee income if cover then exceeds £100,000
  for at least 2 years but preferably 6