Professional Ethics

Question 1

Ethics

Answer 1

A set of moral principles that guide behaviour.

Question 2

Ethical values

Answer 2

Assumptions and beliefs about what constitutes ‘right’ and ‘wrong’ behaviour.

Question 3

Business ethics

Answer 3

A concept that suggests businesses are morally responsible for their actions, and should be held accountable for the effects of their actions, on people and society.

Question 4

Organisation culture

Answer 4

Other values: “ the way we do things around here”, the unwritten rules and customs of behaviour.

Question 5

Code of ethics

Answer 5

Often focuses on social issues. It may set out general principles about an organisation’s beliefs on matters such as mission, quality, privacy, or the environment.

Question 6

Code of conduct

Answer 6

Often arisen from the code of ethics.

Question 7

AAT Guildelines in three parts

Answer 7

Part A: applies to all members. Part B: represents additional guidance which applies specifically to members in practice. Part C: applies specifically to members in business.

Question 8

Objectives of the accountancy profession

Answer 8

1) Particular skills and techniques. 2) Ethical approach to work. 3) Duties to society. 4) Objective. 5) High standards. 6) Acceptance by the public

Question 9

Law and regulations

Answer 9

Ethical issues

Question 10

Civil and criminal law

Answer 10

Know and apply these to the country in which you live and work.

Question 11

Reputation and standing

Answer 11

Requirement to which Members are to conduct themselves, and provide services to clients, according to certain professional and ethical standards.

Question 12

Public interest

Answer 12

The accountancy profession sees itself as having duties to society as a whole- in addition to its specific obligations to employers and clients

Question 13

Advice for AAT members

Answer 13

1) Avoid even the appearance of conflict of interest. 2) Be objective and act in the public interest. 3) Straightforward and honest in professional and business relationships. 4) Maintain professional knowledge, behaviours and skills at the level required by a client or employer.

Question 14

Fundamental principles

Answer 14

1) Integrity
2) Objectivity
3) Professional competence & due care
4) Confidentiality 5) Professional behaviour

Question 15

Integrity

Answer 15

Obligation on all members to be straightforward and honest in professional and business relationships. Also implies fair dealing and truthfulness.
Paragragh.110.1

Question 16

Paragraph 110.1 AAT guidelines

Answer 16

Members must not be associated with reports, returns, communications, or other information where they believe that the information: 1) contains a false or misleading statement.
2) contains statements or information furnished recklessly 3) omits or obscures information required to be included where such omission or obscurity would be misleading

Question 17

Objectivity

Answer 17

The principle that imposes an obligation on all members not to compromise their business judgement because of bias, conflict of interest or the undue influence of others (Paragraph 120.1)

Question 18

Professional competence and due care

Answer 18

The principle imposes the following obligations on members:

1) maintain professional knowledge and skill at the level required
2) to act diligently in accordance with applicable technical and professional standards when providing professional services