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AAT > PETH > Flashcards

PETH Flashcards

0
Q

What am I describing?

Promotes good financial reporting

A

Financial Reporting Council

FRC

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1
Q

NCA

A

National Crime Agency

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2
Q

Sponsoring bodies?

A

CIPFA
ICAEW
CIMA
ICAS

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3
Q

What is

The institute for Chartered Accountants in England and Wales

A

ICAEW

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4
Q

The UN’s Bruntland Report

Sustainable development is a development that ….

A

meets the needs of the present without compromising the ability of future generations to meet their own needs

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5
Q

Data Protection Act 1998 principles;

A
  • Data should be processed fairly and lawfully
  • should only be obtained only for specified and lawful purposes
  • should be adequate, relevant and not excessive
  • accurate and up to date
  • shouldn’t be kept longer then necessary
  • should be processed in accordance with your rights
  • kept secure
  • should not be transferred to other countries without adequate protection
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6
Q

Difference between Fraud and Error?

A

Fraud is intentional, Error is mistake

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7
Q

2 key areas of fraud management:

A
  1. Fraud Prevention (most important)

2. Fraud detention and deterrence

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8
Q

What is Fraud?

A

Dishonestly obtaining an advantage, avoiding an obligation or causing a loss to another party.

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9
Q

The 3 offences of Fraud Act 2006

A

Fraud by

  1. false representation
  2. failing to disclose information
  3. abuse of position
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10
Q

Contractual and legal relationships:

A
  1. Employment contract
  2. Employment laws
  3. Discrimination laws
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11
Q

TBL ?

A

Triple Bottom Line reporting

Expands the traditional reporting framework to take into account environmental and social performance (in addition to financial performance)

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12
Q

The Sustainable Business Network

A sustainable business is a business that….

A

Offers products and services that fulfil society’s needs while placing an equal emphasis on People, Planet and Profits

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13
Q

Operational risk:

The risk of _______ resulting from inadequate or failed ______ ________, people and _______, or ______ ______.

A

Losses
Internal processes
Systems
External events

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14
Q

What details needed to register to hold personal data?

A
  1. Name and address of data user
  2. Description of purpose for holding the data
  3. Description of source data
  4. Identification of persons to whom it is disclosed
  5. Names and non UK countries to which the info is disclosed
  6. Name of person responsible dealing with subject enquiries
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15
Q

Method of charging Fees:

A
  • hourly rates
  • by the job, fixed rates
  • contingency, % of performance arrangements
  • flat fee plus expenses
  • daily fee plus expenses
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16
Q

Fraud risk is governed by?

A

Probability of Fraud x size of resultant loss

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17
Q

5 threats to independence?

A
  1. The self-interest threat
  2. The advocacy threat
  3. The self-review threat
  4. The familiarity or thrust threat
  5. Intimidation threat
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18
Q

What should the Fees reflect?

A
  • skills and knowledge required
  • level of training and experience required
  • time required for job
  • degree of responsibility it entails
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19
Q

Definition of Ethnics

A

Moral principles that govern the person’s behaviour or conducting of an activity

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20
Q

Offences under Bribery Act 2010:

A
  • Active bribery - promising or giving financial or other advantage
  • Passive bribery - agreeing to receive or accepting financial or other advantage
  • Bribery of foreign public officials
  • The failure to prevent bribery by an associated person (corporate offence)
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21
Q

The 5 fundamental principles

A
  1. Objectivity
  2. Professional competence and due care
  3. Professional behaviour
  4. Integrity
  5. Confidentiality
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22
Q

What’s missing?

  1. Objectivity
  2. Professional competence and due care
  3. Professional behaviour
    4.
  4. Confidentiality
A
  1. Integrity
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23
Q

What’s missing?

  1. Objectivity
  2. Professional competence and due care
  3. Professional behaviour
  4. Integrity
    5.
A
  1. Confidentiality
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24
Q

What’s missing?

  1. Objectivity
  2. Professional competence and due care
  3. Professional behaviour
    4.
  4. Confidentiality
A
  1. Integrity
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25
Q

What do I describe?

Don’t let your own bias or prejudice or pressure from others affect any decision you make

A

Objectivity

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27
Q

What’s missing?

  1. Objectivity
  3. Professional behaviour
  4. Integrity
  5. Confidentiality
A
  1. Professional competence and due care
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29
Q

What’s missing?

  1. Objectivity
  2. Professional behaviour
  4. Integrity
  5. Confidentiality
A
  1. Professional behaviour
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30
Q
  1. The self-interest threat
  2. The advocacy threat
  4. The familiarity or thrust threat
  5. Intimidation threat
A
  1. The self-review threat
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31
Q

Managing potential liability with new clients (7):

A
  1. Identify terms of engagement
  2. Define specific tasks
  3. Define responsibilities to be undertaken by client
  4. Specify limitations
  5. Take out professional indemnity insurance
  6. Carry out customer due diligence
  7. Check with previous accountant (if any)
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32
Q

What’s missing?

  1. Objectivity
  2. Professional behaviour
  4. Integrity
  5. Confidentiality
A
  1. Professional behaviour
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33
Q

What do I describe?

Refuse to undertake any assignment that you’re not competent to carry out and take the appropriate amount of care to ensure that the quality of the work performed meets the highest standards

A

Professional competence and due care

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34
Q

What do I describe?

Don’t act in any way that is unprofessional or does not comply with relevant laws and regulations

A

Professional behaviour

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35
Q

What do I describe?

Being straightforward and honest in performing professional work and in all business relationships

A

Integrity

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36
Q

What do I describe?

Only reveal confidential information with the client’s authorisation or where there is a legal duty to disclose

A

Confidentiality

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37
Q

The AAT members must be
• independent of ____
• independent in ________

A
  • Of mind

* in appearance

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38
Q

What’s missing?

  1. The self-interest threat
  3. The self-review threat
  4. The familiarity or thrust threat
  5. Intimidation threat
A
  1. The advocacy threat
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39
Q

What do I describe?

Don’t let your own bias or prejudice or pressure from others affect any decision you make

A

Objectivity and Independence

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40
Q

What’s missing?

  1. The self-interest threat
  2. The advocacy threat
  3. The self-review threat
  5. Intimidation threat
A
  1. The familiarity or trust threat
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41
Q
  1. The self-interest threat
  2. The advocacy threat
  3. The self-review threat
  4. The familiarity or thrust threat
    5.
A
  1. The intimidation threat
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42
Q

What’s missing?

  2. Professional competence and due care
  3. Professional behaviour
  4. Integrity
  5. Confidentiality
A
  1. objectivity
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43
Q

What’s missing?

  1. Objectivity
  2. Professional competence and due care
  3. Professional behaviour
  4. Integrity
    5.
A
  1. Confidentiality
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44
Q

What do I describe?

May occur as a result of a financial or other interest, held by the accountant or a family member?

A

Self interest threat

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45
Q

What is the self-interest threat?

A

It may occur as a result of a financial or other interest, held by or the family of the accountant

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47
Q

What’s missing?
The Advocacy Threat

May occur when an accountant _______ a ______ or _____ to the point where __________ _________ may be compromised

A

promotes
position or opinion
Subsequent objectivity

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48
Q

How do you describe the Advocacy threat?

A

It may occur when an accountant promotes a position or opinion to the point where subsequent objectivity may be compromised

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49
Q

What do I describe?

May occur as a result of a financial or other interest, held by the accountant or a family member?

A

Self interest threat

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50
Q

What is the self-interest threat?

A

It may occur as a result of a financial or other interest, held by or the family of the accountant

51
Q

Penalty for Bribery?

A

Up to 10 years + unlimited fine

52
Q

What do I describe?

May occur when an accountant promotes a position or opinion to the point where subsequent objectivity may be compromised

A

The advocacy threat

53
Q

What’s missing?
The Advocacy Threat

May occur when an accountant _______ a ______ or _____ to the point where __________ _________ may be compromised

A

promotes
position or opinion
Subsequent objectivity

54
Q

How do you describe the Advocacy threat?

A

It may occur when an accountant promotes a position or opinion to the point where subsequent objectivity may be compromised

55
Q

What’s missing?

The self-review threat: when a _____ ______ needs to be __-_______ you cannot _____ your own work

A

Previous judgement
Re-evaluated
Audit

56
Q

What do I describe?

When a previous judgement needs to be re-evaluated you cannot audit your own work

A

The self-review threat

57
Q

What’s missing?

The familiarity or trust threat
May occur when, ______ of a close _______, the accountant becomes too ________ to the interest of others

A

Because of
Relationship
Sympathetic

58
Q

What do I describe?

May occur when, because of a close relationship, the accountant becomes too sympathetic to the interest of others

A

The familiarity or trust threat

59
Q

What do I describe?

May occur when the accountant may be deterred from acting objectively by threats - actual or perceived

A

The intimidation threat

60
Q

What’s missing?

The intimidation threat: may occur when an _______ may be ______ from ____ ______ by threats, actual or _______

A

Accountant
Deterred
Acting objectively
Perceived

61
Q

What are ‘safeguards’?

A

Safeguards that may eliminate or reduce threats to an acceptable level:
• safeguarded by the profession, legislation or regulation
• safeguards in the work environment

62
Q

Responsibility for Professional Competence and Due Care

A
  1. Follow applicable laws, regulations and standards
  2. Maintain professional competence
  3. Prepare complete and clear reports after appropriate analysis of relevant and reliable information
63
Q

Responsibility for Professional Behavior?

A 
• credibility
• professionalism: 
  - client relations
  - professional curtesy
  - expertise
64
Q

What’s missing?

Integrity:

  1. do not _____ the organisation’s legitimate _____
  2. Communicate ___________ as well as ______ information
A
  1. subvert, objectives

2. Unfavourable; favourable

65
Q

What’s missing?

Integrity:

  1. Refuse ____ or _____ that might influence your ________
  2. _____ activities that could ____ your _____ to perform _____
  3. Avoid _____ of interest and ____ others of potential ________
A
  1. Gifts or favours; behaviour
  2. Avoid; affect; ability; duties
  3. Conflicts; advise; conflicts
66
Q

What’s missing?

Integrity:

  1. ____ and ______ personal and professional ______
  2. ____ from activities that could _____ the profession
A
  1. Recognise; communicate; limitations

7. Refrain; discredit

67
Q

What’s missing?

Confidentiality:
Do not _____ _______ information unless ____ _____

A

Disclose confidential

Legally obliged

68
Q

What Missing?

Confidentiality:
Ensure _______ do not _____ confidential _______

A

Subordinates
Disclose
Information

69
Q

What Missing?

Confidentiality:
Do ___ ___ confidential information for _______ ______

A

Not use

Personal advantage

70
Q

What’s missing?
When would be disclosure appropriate?
1. Where ______ by law _______ by the client
2. Where ______ by law
3. Where there is s ______ ____ to disclose, which is in the public ______ and not ______ by law

A
  1. Permitted by law and authorised
  2. Required
  3. Professional duty; interest; prohibited
71
Q

The IoBE Simple test:

A
  1. Transparency - do I mind others knowing what I have decided
  2. Effect - does my decision effect, hurt anyone
  3. Fairness - would my decision be considered fair by those affected?
73
Q

What am I describing?

Advises on setting accounting standards

A

Accounting Council

74
Q

What am I describing?

Advises in setting Auditing standards

A

Audit & Assurance Council

75
Q

What am I describing?

Provides independent oversight of professional disciplinary issues, together with oversight of the regulation of accountants and actuaries in UK and ROI

A

Conduct Committee

76
Q

What is

The Institute of Chartered Accountants in Ireland

A

ICAI

77
Q

What’s missing?
Conduct Committee

Provides _________ oversight of professional ______ _____, together with _____ of the ______ of accountants and ______ in UK and ___.

A 
Independent
Disciplinary issues
Oversight
Regulations
Actuaries
ROI
78
Q

What is

Professional body for people in Public Finance

A

CIPFA

78
Q

The Consultative Committee of Accountancy Bodies (CCAB)

A 
ICAEW
ICAS
ICAI
ACCA
CIPFA
79
Q

CIPFA

Professional body for people in ______ _____

A

Public finance

80
Q

What is

The Chartered Institute of Management Accountants

A

CIMA

81
Q

What is

The Institute for Chartered Accountants in Scotland

A

ICAS

82
Q

What is
Role is to protect the public interest by developing high quality international standards, promoting strong ethical values and encouraging quality practice.

A

IFAC

International Federation of Accountants

83
Q

Principle-based (_______) approach

You look at the ____ to be achieved and _____ on it. The AAT states that _____ principles must be _____. They are the professions firm ______.

A

Integrity

Objective
Focus
Fundamental
Observed
Guideposts
85
Q

Accountants need to keep up to date with Changes in the following areas:

A
  • Reporting and auditing standards
  • Ethical codes
  • Tax and companies legislation
  • Relevant criminal law including bribery, fraud, money laundering
  • Regulation of accounting, reporting, tax compliance, audit, the accountancy and finance profession
86
Q

Two types of CPD?

A

Update CPD

Developmental CPD

87
Q

Rule-based (__________) approach

You apply the rules ____ __ ______, regardless of the _________. The law defines the minimum ethical standards in a given area of practice and _______ regulations outline what is acceptable and ____ __ ___.

A

Compliance

Exactly as stated
Circumstances
Government
What is not

88
Q

What’s CPD?

A

Continuing Priofesional Development

89
Q 
What's missing?
Structured CPD:
1. In house training 
2. 
3. University courses
4. Conferences both local an international
5.
6. Assessed distance learning
7.
8. Other structured courses
A
  1. Other professional bodies
  2. Branch & National courses
  3. Outside providers
90
Q 
What's missing?
Structured CPD:
1. 
2. Other professional bodies
3. University courses
4. 
5. Branch & National courses
6. 
7. Outside providers
8. Other structured courses
A
  1. In house training
  2. Conferences both local and international
  3. Assessed distance learning
91
Q 
What's missing?
Unstructured CPD:
1.
2. Educational videos
3. 
4. Distance learning (with no assessment)
A
  1. Reading professional / technical articles

3. Specific reading material

92
Q

Operational risks include:

A
  1. Fraud
  2. Theft
  3. Employee malfeasance (hivatali visszaélés)
93
Q

4 steps of CPD

A

Assess
Plan
Action
Evaluate

94
Q

What’s missing?

The ______ _______ is defined as a ______ well being of the ______ __ _____ and ________ the professional accountant serves.

A

Public interest
Collective
Community of people
Institutions

95
Q

What’s missing?
Unstructured CPD:

  1. Reading professional / technical articles
  3. Specific reading material that relates to practical form
    4.
A
  1. Educational videos

4. Distance learning ( with no assessment)

96
Q

Internal auditing is an ________, _______ ______ and consulting activity designed to ___ ____ and _______ an organisation’s operations.

A

Independent, objective assurance
Add value
Improve

97
Q

FCA ?

A

Financial Conduct Authority

98
Q

What’s IESBA

A

International Ethics Standards Board for Acvountants

99
Q

What’s FRC

A

Financial Reporting Council

100
Q

3 part of FRC?

A
  1. Accounting Council
  2. Audit & Assurance Council
  3. Conduct Committee
101
Q

What means no ‘de minimis’?

A

De minimis = materiality

No de minimis = no amount too small

102
Q

Is ‘no minimis’ available for money laundering or terrorist financing?

A

No

103
Q

POCA ?

A

Proceeds of Crime Act 2002

104
Q

MLR

A

Money Laundering Regulations 2007

105
Q

TA ?

A

Terrorism Act 2000 & 2006

106
Q

How many years for money laundering?

A

14 years

107
Q

The person commits money laundering offence if he:

A
  • Conceals, Converts, Disguises or Transfers or Removes criminal property
  • enters into or become concerned in an arrangement which he knows or suspects facilities the acquisitions, retention, use or control of criminal property
  • Acquires, uses or has possessions of criminal property
108
Q

MLRO

A

(An internal) Money Laundering Reporting Officer

109
Q

How many years for failure to disclose money laundering?

A

14 years and/or unlimited fine

110
Q

What’s missing?

  1. Objectivity
  3. Professional behaviour
  4. Integrity
  5. Confidentiality
A
  1. Professional competence and due care
111
Q

What do I describe?

May occur when an accountant promotes a position or opinion to the point where subsequent objectivity may be compromised

A

The advocacy threat

112
Q 
Statutory regulated (reserved) functions 
(Not allowed to AAT members unless authorised):
A
  • external audit on Ltd or when registered auditor is needed
  • activities regulated by FCA (undertaking an investment business)
  • insolvency practice (csőd eljárás)
112
Q

What’s IFAC?

A

The International Federation of Accountants

- international body representing all major accountancy bodies around the word

112
Q

What’s IAASB

A

International Audit and Assurance Standards Board

112
Q

What’s IASB

A

International Accounting Standards Board

112
Q

How many years for tipping off?

A

5 years and/or unlimited fine

112
Q

Financial Conduct Authority

A

FCA

113
Q

Whistle blowing means disclosing information if you believe or have evidence of:

A
  • illegality
  • gross waste
  • gross mismanagement
  • abuse of power
  • substantial and specific danger to the public health and safety
115
Q

PIDA ?

A

Public Interest Disclosure Act 1998

116
Q

What’s missing?

  2. The advocacy threat
  3. The self-review threat
  4. The familiarity or thrust threat
  5. Intimidation threat
A
  1. The self-interest threat
117
Q

What’s missing?

  2. Professional competence and due care
  3. Professional behaviour
  4. Integrity
  5. Confidentiality
A
  1. objectivity

AAT (3 decks)

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