Ethics, Sustainability, and CSR

Question 1

What are the five fundamental ethical principles in the AAT code? (5)

Answer 1

• Integrity
• Objectivity
• Professional competence and care
• Confidentiality
• Professional behaviour

Question 2

What is a conflict of interest?

Answer 2

A situation where professional judgement and actions are affected because the employee could benefit personally from a transaction

Question 3

What is undue influence?

Answer 3

Someone exerting influence on another person to do something dishonest and against the rules.

Question 4

What is the difference between the principles ‘professional competence and due care’ and ‘professional behaviour’?

Answer 4

Competence and due care relates more to the technical, skills-based aspect of accounting, whereas professional behaviour highlights actions that may bring disrepute to the profession

Question 5

What is the aim of the AAT Code of Professional Ethics?

Answer 5

To function as a set of principles that guides members to take ethical actions - it is NOT based on law

Question 6

Which ‘three pillars’ comprise the ‘triple bottom line’ of sustainability?

Answer 6

Profit - Economic Growth
Planet - Environmental Protection
People - Social Equality
PPP