Topic 8- Ethical And Professional Behaviour Flashcards
What is the ICAEW’s code of ethics influenced by?
The international ethics standards board for accountants.
What other ethical code should auditors abide to?
The Financial reporting councils ethical standards
Why hasn’t the ICAEW taken a rules based approach to ethics?
It would be impossible to create an entire set of rules for every single scenario
What are the fundamental ethical principles?
Integrity Objectivity Professional competence and due care Confidentiality Professional behaviour
What 5 general threats to the ICAEW ethical code are there? And what one sixth threat is there identified by the FRC?
Self interest Self review Advocacy Familiarity Intimidation
Management
What is the self interest threat?
When someone has an interest in a client which may cause them to act favourably to the client
What is the self review threat?
When people review their own work that they are responsible for
What is the advocacy threat?
Promoting a position or opinion to a point that may compromise objectivity
What is the familiarity threat?
When a relationship builds up too much, that they become too sympathetic of each others interests
What is the intimidation threat?
When people are deterred from acting properly in certain situations
What is the management threat?
When an audit firm undertakes work that involves making judgements which are the responsibility of management.
How long should an employee wait to act on a client who they have been involved with at a previous job?
Two years ‘cooling off period’
