PETH Flashcards
0
Q
What am I describing?
Promotes good financial reporting
A
Financial Reporting Council
FRC
1
Q
NCA
A
National Crime Agency
2
Q
Sponsoring bodies?
A
CIPFA
ICAEW
CIMA
ICAS
3
Q
What is
The institute for Chartered Accountants in England and Wales
A
ICAEW
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
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
6
Q
Difference between Fraud and Error?
A
Fraud is intentional, Error is mistake
7
Q
2 key areas of fraud management:
A
- Fraud Prevention (most important)
2. Fraud detention and deterrence
8
Q
What is Fraud?
A
Dishonestly obtaining an advantage, avoiding an obligation or causing a loss to another party.
9
Q
The 3 offences of Fraud Act 2006
A
Fraud by
- false representation
- failing to disclose information
- abuse of position
10
Q
Contractual and legal relationships:
A
- Employment contract
- Employment laws
- Discrimination laws
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)
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
13
Q
Operational risk:
The risk of _______ resulting from inadequate or failed ______ ________, people and _______, or ______ ______.
A
Losses
Internal processes
Systems
External events
14
Q
What details needed to register to hold personal data?
A
- Name and address of data user
- Description of purpose for holding the data
- Description of source data
- Identification of persons to whom it is disclosed
- Names and non UK countries to which the info is disclosed
- Name of person responsible dealing with subject enquiries
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
16
Q
Fraud risk is governed by?
A
Probability of Fraud x size of resultant loss
17
Q
5 threats to independence?
A
- The self-interest threat
- The advocacy threat
- The self-review threat
- The familiarity or thrust threat
- Intimidation threat
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
19
Q
Definition of Ethnics
A
Moral principles that govern the person’s behaviour or conducting of an activity
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)
21
Q
The 5 fundamental principles
A
- Objectivity
- Professional competence and due care
- Professional behaviour
- Integrity
- Confidentiality
22
Q
What’s missing?
- Objectivity
- Professional competence and due care
- Professional behaviour
4. - Confidentiality
A
- Integrity
23
Q
What’s missing?
- Objectivity
- Professional competence and due care
- Professional behaviour
- Integrity
5.
A
- Confidentiality
24
What's missing?
1. Objectivity
2. Professional competence and due care
3. Professional behaviour
4.
5. Confidentiality
4. Integrity
25
What do I describe?
Don't let your own bias or prejudice or pressure from others affect any decision you make
Objectivity
27
What's missing?
1. Objectivity
2.
3. Professional behaviour
4. Integrity
5. Confidentiality
2. Professional competence and due care
29
What's missing?
1. Objectivity
2. Professional behaviour
3.
4. Integrity
5. Confidentiality
3. Professional behaviour
30
1. The self-interest threat
2. The advocacy threat
3.
4. The familiarity or thrust threat
5. Intimidation threat
3. The self-review threat
31
Managing potential liability with new clients (7):
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)
32
What's missing?
1. Objectivity
2. Professional behaviour
3.
4. Integrity
5. Confidentiality
3. Professional behaviour
33
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
Professional competence and due care
34
What do I describe?
Don't act in any way that is unprofessional or does not comply with relevant laws and regulations
Professional behaviour
35
What do I describe?
Being straightforward and honest in performing professional work and in all business relationships
Integrity
36
What do I describe?
Only reveal confidential information with the client's authorisation or where there is a legal duty to disclose
Confidentiality
37
The AAT members must be
• independent of ____
• independent in ________
* Of mind
| * in appearance
38
What's missing?
1. The self-interest threat
2.
3. The self-review threat
4. The familiarity or thrust threat
5. Intimidation threat
2. The advocacy threat
39
What do I describe?
Don't let your own bias or prejudice or pressure from others affect any decision you make
Objectivity and Independence
40
What's missing?
1. The self-interest threat
2. The advocacy threat
3. The self-review threat
4.
5. Intimidation threat
4. The familiarity or trust threat
41
1. The self-interest threat
2. The advocacy threat
3. The self-review threat
4. The familiarity or thrust threat
5.
5. The intimidation threat
42
What's missing?
1.
2. Professional competence and due care
3. Professional behaviour
4. Integrity
5. Confidentiality
1. objectivity
43
What's missing?
1. Objectivity
2. Professional competence and due care
3. Professional behaviour
4. Integrity
5.
5. Confidentiality
44
What do I describe?
May occur as a result of a financial or other interest, held by the accountant or a family member?
Self interest threat
45
What is the self-interest threat?
It may occur as a result of a financial or other interest, held by or the family of the accountant
47
What's missing?
The Advocacy Threat
May occur when an accountant _______ a ______ or _____ to the point where __________ _________ may be compromised
promotes
position or opinion
Subsequent objectivity
48
How do you describe the Advocacy threat?
It may occur when an accountant promotes a position or opinion to the point where subsequent objectivity may be compromised
49
What do I describe?
May occur as a result of a financial or other interest, held by the accountant or a family member?
Self interest threat
50
What is the self-interest threat?
It may occur as a result of a financial or other interest, held by or the family of the accountant
51
Penalty for Bribery?
Up to 10 years + unlimited fine
52
What do I describe?
| May occur when an accountant promotes a position or opinion to the point where subsequent objectivity may be compromised
The advocacy threat
53
What's missing?
The Advocacy Threat
May occur when an accountant _______ a ______ or _____ to the point where __________ _________ may be compromised
promotes
position or opinion
Subsequent objectivity
54
How do you describe the Advocacy threat?
It may occur when an accountant promotes a position or opinion to the point where subsequent objectivity may be compromised
55
What's missing?
The self-review threat: when a _____ ______ needs to be __-_______ you cannot _____ your own work
Previous judgement
Re-evaluated
Audit
56
What do I describe?
When a previous judgement needs to be re-evaluated you cannot audit your own work
The self-review threat
57
What's missing?
The familiarity or trust threat
May occur when, ______ of a close _______, the accountant becomes too ________ to the interest of others
Because of
Relationship
Sympathetic
58
What do I describe?
May occur when, because of a close relationship, the accountant becomes too sympathetic to the interest of others
The familiarity or trust threat
59
What do I describe?
May occur when the accountant may be deterred from acting objectively by threats - actual or perceived
The intimidation threat
60
What's missing?
The intimidation threat: may occur when an _______ may be ______ from ____ ______ by threats, actual or _______
Accountant
Deterred
Acting objectively
Perceived
61
What are 'safeguards'?
Safeguards that may eliminate or reduce threats to an acceptable level:
• safeguarded by the profession, legislation or regulation
• safeguards in the work environment
62
Responsibility for Professional Competence and Due Care
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
Responsibility for Professional Behavior?
```
• credibility
• professionalism:
- client relations
- professional curtesy
- expertise
```
64
What's missing?
Integrity:
1. do not _____ the organisation's legitimate _____
2. Communicate ___________ as well as ______ information
1. subvert, objectives
| 2. Unfavourable; favourable
65
What's missing?
Integrity:
3. Refuse ____ or _____ that might influence your ________
4. _____ activities that could ____ your _____ to perform _____
5. Avoid _____ of interest and ____ others of potential ________
3. Gifts or favours; behaviour
4. Avoid; affect; ability; duties
5. Conflicts; advise; conflicts
66
What's missing?
Integrity:
6. ____ and ______ personal and professional ______
7. ____ from activities that could _____ the profession
6. Recognise; communicate; limitations
| 7. Refrain; discredit
67
What's missing?
Confidentiality:
Do not _____ _______ information unless ____ _____
Disclose confidential
| Legally obliged
68
What Missing?
Confidentiality:
Ensure _______ do not _____ confidential _______
Subordinates
Disclose
Information
69
What Missing?
Confidentiality:
Do ___ ___ confidential information for _______ ______
Not use
| Personal advantage
70
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
1. Permitted by law and authorised
2. Required
3. Professional duty; interest; prohibited
71
The IoBE Simple test:
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
What am I describing?
Advises on setting accounting standards
Accounting Council
74
What am I describing?
Advises in setting Auditing standards
Audit & Assurance Council
75
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
Conduct Committee
76
What is
| The Institute of Chartered Accountants in Ireland
ICAI
77
What's missing?
Conduct Committee
Provides _________ oversight of professional ______ _____, together with _____ of the ______ of accountants and ______ in UK and ___.
```
Independent
Disciplinary issues
Oversight
Regulations
Actuaries
ROI
```
78
What is
| Professional body for people in Public Finance
CIPFA
78
The Consultative Committee of Accountancy Bodies (CCAB)
```
ICAEW
ICAS
ICAI
ACCA
CIPFA
```
79
CIPFA
| Professional body for people in ______ _____
Public finance
80
What is
| The Chartered Institute of Management Accountants
CIMA
81
What is
| The Institute for Chartered Accountants in Scotland
ICAS
82
What is
Role is to protect the public interest by developing high quality international standards, promoting strong ethical values and encouraging quality practice.
IFAC
| International Federation of Accountants
83
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 ______.
Integrity
```
Objective
Focus
Fundamental
Observed
Guideposts
```
85
Accountants need to keep up to date with Changes in the following areas:
* 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
Two types of CPD?
Update CPD
| Developmental CPD
87
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 ____ __ ___.
Compliance
Exactly as stated
Circumstances
Government
What is not
88
What's CPD?
Continuing Priofesional Development
89
```
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
```
2. Other professional bodies
5. Branch & National courses
7. Outside providers
90
```
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
```
1. In house training
4. Conferences both local and international
6. Assessed distance learning
91
```
What's missing?
Unstructured CPD:
1.
2. Educational videos
3.
4. Distance learning (with no assessment)
```
1. Reading professional / technical articles
| 3. Specific reading material
92
Operational risks include:
1. Fraud
2. Theft
3. Employee malfeasance (hivatali visszaélés)
93
4 steps of CPD
Assess
Plan
Action
Evaluate
94
What's missing?
The ______ _______ is defined as a ______ well being of the ______ __ _____ and ________ the professional accountant serves.
Public interest
Collective
Community of people
Institutions
95
What's missing?
Unstructured CPD:
1. Reading professional / technical articles
2.
3. Specific reading material that relates to practical form
4.
2. Educational videos
| 4. Distance learning ( with no assessment)
96
Internal auditing is an ________, _______ ______ and consulting activity designed to ___ ____ and _______ an organisation's operations.
Independent, objective assurance
Add value
Improve
97
FCA ?
Financial Conduct Authority
98
What's IESBA
International Ethics Standards Board for Acvountants
99
What's FRC
Financial Reporting Council
100
3 part of FRC?
1. Accounting Council
2. Audit & Assurance Council
3. Conduct Committee
101
What means no 'de minimis'?
De minimis = materiality
| No de minimis = no amount too small
102
Is 'no minimis' available for money laundering or terrorist financing?
No
103
POCA ?
Proceeds of Crime Act 2002
104
MLR
Money Laundering Regulations 2007
105
TA ?
Terrorism Act 2000 & 2006
106
How many years for money laundering?
14 years
107
The person commits money laundering offence if he:
* 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
MLRO
(An internal) Money Laundering Reporting Officer
109
How many years for failure to disclose money laundering?
14 years and/or unlimited fine
110
What's missing?
1. Objectivity
2.
3. Professional behaviour
4. Integrity
5. Confidentiality
2. Professional competence and due care
111
What do I describe?
| May occur when an accountant promotes a position or opinion to the point where subsequent objectivity may be compromised
The advocacy threat
112
```
Statutory regulated (reserved) functions
(Not allowed to AAT members unless authorised):
```
* external audit on Ltd or when registered auditor is needed
* activities regulated by FCA (undertaking an investment business)
* insolvency practice (csőd eljárás)
112
What's IFAC?
The International Federation of Accountants
| - international body representing all major accountancy bodies around the word
112
What's IAASB
International Audit and Assurance Standards Board
112
What's IASB
International Accounting Standards Board
112
How many years for tipping off?
5 years and/or unlimited fine
112
Financial Conduct Authority
FCA
113
Whistle blowing means disclosing information if you believe or have evidence of:
* illegality
* gross waste
* gross mismanagement
* abuse of power
* substantial and specific danger to the public health and safety
115
PIDA ?
Public Interest Disclosure Act 1998
116
What's missing?
1.
2. The advocacy threat
3. The self-review threat
4. The familiarity or thrust threat
5. Intimidation threat
1. The self-interest threat
117
What's missing?
1.
2. Professional competence and due care
3. Professional behaviour
4. Integrity
5. Confidentiality
1. objectivity
