Ethics ch 1

Question 1

Professional ethics

Answer 1

Moral principles or standards that govern the conduct of the members of an organisation.

( the Professional ethics of an organisation/business are the accepted behaviours that organise the behaviour or members of that organisation)

Question 2

Codes of professional ethics

Answer 2

Documents issued by the accounting bodies providing guidance to full and student members regarding professional ethics

Question 3

Integrity (give an example)

Answer 3

Accountants should be straight forward and honest in performing professional ethics

Question 4

Honesty

Answer 4

Being truthful and trustworthy

Question 5

Transparency (give example)

Answer 5

Operating in a way that is easy for others to see what is being done or said

Question 6

Continuing professional development (give example)

Answer 6

Members of professional accounting bodies are expected to keep their technical knowledge up-to-date through relevant study, training and by attending courses

Question 7

Objectivity (give example)

Answer 7

Decisions should be made in true. Facts and accountants shouldn’t let their bias or pressure from others affect decisions they make

Question 8

Conflict of interest

Answer 8

These arise where the business or personal interests of an accountant may influence the accountant giving an objective opinion

Question 9

Professional competence and due care

Answer 9

Accounts have a duty to ensure that they have the necessary skills to carry out any work that is assigned to them. And that they always take sufficient care to ensure that the quality of their work meets the high standards expected in them.

Question 10

Confidentiality

Answer 10

Info obtained during the course of professional work should not be disclosed without proper and specific authority or unless there is a Legal duty to do so

Question 11

Professional behaviour

Answer 11

Accountants should maintain the good reputation and should not do anyone to discredit the profession.

Question 12

Probity

Answer 12

The quality of having strong moral principles of honesty and decency

Question 13

Why was the code of professional ethics created?

Answer 13

It was designed to help its members maintain the high fanfare of professionalism that is expected of them

Question 14

the AAT code is based if the IESBA

Answer 14

International standard-setting board which is responsible for setting global ethical standards for accountants. And is part of the IFAC (international federation of accountants)

Question 15

Is the compliance with the ethical code a professional obligation or a legal obligation?

What is the difference between these 2.

Answer 15

Professional obligation.

Question 16

Who does the Aat code apply to

Answer 16

All fellow, full and affiliate and student members of the Aat. When applying for student membership the student signs a declaration agreeing to abide by releaveny regulations and policies of Aat. Even before you are qualified and become a full time member

Question 17

Part A, Part B and Part C

Answer 17

Part A- applies to all members

Part B- represents additional guidance which applies to members in practice

Part C- applies to members in business

Question 18

PPCIO (popular people chat in offices)

Answer 18

5 fundamental principles

Question 19

What 6 objectivity’s is the accountancy profession committed to

Answer 19

Mastering skills and techniques through learning and training

Developing an ethical approach to work and observe ethic code

Acknowledging a duty to society as a whole

Adopting an objective approach

Providing accountanting services to the highest standard

Ensuring that the public knows the accountants services to these high standards