Synoptic Exam Flashcards
What is professional ethics?
The moral principles or standards that govern the conduct of the members of an organisation
What is the five fundamental principles of professional Ethics and how can you remember it?
P - Professional Behaviour P - Professional competence and due care C - Confidentiality I - Integrity O - Objectivity
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What does integrity mean?
Accountants should be straightforward and honest in performing professional duties
What does objectivity mean?
decisions should be made based on true facts and accountants must not let their own bias or prejudice, or pressure from others affects decisions that they make
What does professional competence and due care mean?
accountants have a duty to ensure that they have the necessary skills to carry out any work that is assigned to them and that they always take sufficient care to ensure that the quality of their work meets the high standards expected of them
What does confidentiality mean?
information obtained during the course of professional work should not be disclosed without proper and specific authority or unless there is a legal duty to do so
What doe professional behaviour mean?
accountants should maintain the good reputation of the profession and should not do anything to discredit the profession
What are the five threats to the fundamental ethical principles?
- Self-interest
- Self-review
- Familiarity
- Intimidation
- Advocacy
What is the self-interest threat?
threat caused by a financial relationship between the accountant and a client or an employer
What is the self-review threat?
threat caused by an accountant having to review or evaluate a previous judgement that he/she has made
What is the familiarity threat?
threat caused by a close family relation or close friend of the accountant being a key member of the client staff or a supplier or customer of the accountants employer
What is the intimidation threat?
real or perceived threat caused by a client exerting undue pressure on an accountant in practice or a dominant employer attempting to influence an accountant in business
What is the advocacy threat?
threat caused by an accountant going beyond an advisory role and publicly supporting the client in some way
