Principles of professional ethics - Lesson 5 Flashcards

1
Q

Parts of the AAT code apply to?

A

Part a = applies to ALL MEMBERS
Part b = additional guidance for members IN PRACTICE
Part c = specifically to members in business

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2
Q

Fundamental principle - Integrity

A

Being honest and having a strong set of moral principles. Straightforward. Could be associated with misleading info if integrity is not used. 3 ethical values that contribute to integrity = honesty, fairness and transparency.

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3
Q

Fundamental principle - Objectivity

A

Base your opinions and facts and not be influenced by beliefs or feelings. When faced with a conflict, they must not let their SELF-INTEREST affect the professional decision. WITHOUT BIAS. Independence means the same thing to not be influenced by the interests of others.

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4
Q

Confidential info may be required to be disclosed by law when…

A

When the info is needed as evidence in law. When the law has been broken so the info needs to be shown to the authorities. The accountant must comply with the court request even through they are breaking the rule of confidentiality to their ER and client even if they deny permission. The law has more power.

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5
Q

Fraud Act 2006 - 3 classes of fraud

A

1 - fraud by false representation which they know is misleading.
2 - fraud by failure to disclose info when there is a legal duty to disclose it
3 - Fraud by abuse of position

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6
Q

Three ways to keep up to date with technical changes

A

Read professional journals
Attend relevant training courses
Carry out CPD by the relevant training body.

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7
Q

When is it acceptable to disclose confidential information?

A

When required to disclose by law
When given authority from the client or employer
When there is a professional duty to disclose

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8
Q

Is CPD a legal requirement?

A

No

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9
Q

Points to remember if asked to disclose confidential info to someone about a client.

A

Explain you cannot do this without authority from the client.
Authority in writing is best but verbal is acceptable.
If given authority, explain that this is solely for the use of that one business to help them make a decision.
The information is given without any financial responsibility on behalf of the accountants.

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