ICAEW Ethics + Threats Flashcards
Integrity
Should be straightforward and honest in all professional/business relationships. Should not knowingly be associated with misleading information.
e.g. ensure F.S. are not materially misstated
Objectivity
Should not allow bias, conflict of interest or undue influence of others to compromise professional judgement
e.g. decline any financial incentives offered
Confidentiality
Should respect the confidentiality of information acquired in a professional relationship.
ONLY disclose if permitted by law, duty of accountant or in public interest e.g. Money Laundering suspicions, terrorism links
Professional behaviour
Should comply with relevant laws and regs. Avoid action that may bring profession into disrepute.
e.g. ensure F.S. comply with IFRS standards + Companies Act 06
Professional competence and due care
Obligation to maintain professional knowledge + skill at level required to give competent service to client
e.g. Adequate qualifications - complete the adequate CPD (continued professional development)
Intimidation threat
The threat that a professional accountant will be deterred from acting objectively by threats, either perceived or actual
Familiarity threat
The threat that due to a close relationship with a client or employer, professional accountant will be too sympathetic to their interests/too accepting of their work
Self-interest threat
Threat that a financial or other interest of accountant or close family member will inappropriately influence the accountants judgement / behaviour
Management threat
When an accountant/audit firm undertakes work that involves making judgments and taking decisions that are properly the responsibility of management.
Self-review threat
threats that arise from an accountant reviewing their own work or the work done by others in their firm
Advocacy threat
the threat that an accountant will promote a client’s interests or position to the point that his or her objectivity or independence is compromised.
