Professional Ethics Flashcards
According to the Institute of Business Ethics what 3 questions should be asked in order to make an ethical decision?
Transparency - do I mind others knowing
Effect - does it affect or hurt anyone
Fairness - would it be considered fair by those affected
What are the 5 key principles of the Code of Ethics for professional accountants?
Integrity
Objectivity
Professional competence and due care
Confidentiality
Professional behaviour
When should confidential information be disclosed?
When permitted by law or authorised by client/employer
When required by law
When required by professional duty, in the public interest and not prohibited by law
What are the threats to compliance with fundamental principles?
The self interest threat
The self-review threat
The advocacy threat
The familiarity or trust threat
The intimidation threat
How should one approach dealing with ethical conflicts?
Step 1: gather information
Step 2: Analysis
Step 3: Action
What is the CPD cycle?
Assess - what skills do I have
Plan - where am I heading/what skills do I need
Action - carry out actions to gain the skills I need as per above
Evaluate - analyse whether job is done and skills attained yet
What are the differences between structured and unstructured CPD?
Structured are specific to area or needs identified
Unstructured are general information obtaining that is non specific or tailored to an individual’s needs
What are types of business risks?
Political risks
Economic risks
Social risks
Technological risks
Strategic risks
What are the main types of operation risks to a business?
Reputation at risk
Litigation risk
Process risk
People risk
Systems risk
Why are the 3 acknowledged phases to money laundering?
Placement - cash from crime placed in financial system
Layering - obscure transactions using trusts and different entities etc…
Integration - investing funds in legally such as assets and property
Define objectivity?
Means that a member must not allow bias, conflict of interest or undue influence of others to override professional or business judgements
Define professional competence?
Continuing duty of members to:
Maintain professional knowledge and skill at the level required to provide competent professional service based on current developments in practice, legislation and techniques
Define due care?
Means a member must act diligently and in accordance with professional standards when providing professional services
Define integrity?
Being straightforward and fair in all professional and business relationships
Define confidentiality?
In accordance with the law, respect the confidentiality of information and not disclose unless required by law or professional duty
