The Accountancy Profession Flashcards
What do professions commonly feature?
Formal regulatory process
Degree of autonomy
Professional values
Co-regulation
What is at the heart of the accounting profession?
Financial reporting
Assurance
What work is the accountancy profession most important to?
Effective working of capital markets
Public interest
What principles must an accountant demonstrate to the public?
Professional scepticism
Critical thinking
Professional judgement
Must self-report
What regulations and interventions do accountants have to follow?
Mandatory reporting requirements
Regulatory returns
Taxes and tariffs
Grants
Compliance audits
What are the market forces accountants must understand?
Risk management
Strategy
Finance
Governance
Metrics and targets
Supply chain management
What is IFAC?
International Federation of Accountants - includes ICAEW
Protects public interest
Membership compliance programme
Who can call themselves an accountant?
Anyone except reserved areas of statutory audit, investment business, insolvency, probate
What does the FRC do?
Set standards
Monitor quality
Regulate audit profession
Oversee self-regulation
Disciplinary body
What are the 2 divisions of the FRC?
Conduct committee - oversight and discipline
Codes and standards
What does the ICAEW have direct responsibility for?
Entry and education requirements
Eligibility to engage in public practice
Deal with professional misconduct
Delegating powers from government
Conduct requirements
What are the 3 main roles of the FRC regarding audit and accounting?
Non-statutory oversight of accountancy bodies
Statutory oversight of regulation of statutory auditors
Independent monitoring of the quality of the auditing function
What must an accountant do to continue membership to ICAEW?
Obey rules and regs
Pay annual subscription fee
Undertake CPD
Hold practicing certificate
Follow code of ethics
Have Professional Indemnity Insurance
