W4 Professional Ethics Flashcards
What are the fundamental ethical principles
Integrity
Objectivity
Professional Competence and Due Care
Confidentiality
Professional Behaviour
What is Integrity
Being truthful, straightforward and honest, dealing fairly with people and situations
What is objectivity
The avoidance of bias
What is professional competence and due care
This is about acquiring and maintaining appropriate technical and other relevant skills and competence to perform our work,doing it thoroughly and correctly, on a timely basis, and ensuring that users of our output understand its context and limitations
What is confidentiality ethical principle
Information encountered in the course of accountancy assignments should not be disclosed to anyone who does not have a legal or professional right to it
In what circumstances can confidentiality be broken
Where a disclosure is required by law (reporting to regulators)
Where a disclosure is permitted by the client (reporting fraud to police)
Where it is in the ‘public interest’
What is the professional behaviour ethical principle
Complying with standards and laws, and avoiding actions that might bring the profession into disrepute both during work and outside work
What are the threats to ethical behaviour
- Self-interest
- Intimidation
- Self-review
- Familiarity
- Advocacy
Explain the self interest ethical threat
Any situation in which we have, or someone close to us has, a vested interest in an outcome, over which we have some degree of influence or control
Explain the intimidation ethical threat
Occurs in any situation where somebody puts pressure on us (or is perceived to) to achieve a particular outcome
Explain the self review ethical threat
When we have to check, audit or approve our own work
like auditing financial statements you have contributed to
Explain the familiarity ethical threat
Famililiarty arises from long association with individuals.
Cant critique unbiasly of someone you know well because it impacts your relationship with them.
Explain the advocacy ethical threat
Promoting or representing a client in some way which would be seen s the auditor ‘taking sides’ with the client
