2016 BPP PASSCARD F1

A framework Management The ethical Ethics in Accountants of rules accountability environment organisations and ethics Why should accountants behave The accountant: ethically? IFAC – international body with its own Laws and regulation code of ethics. ACCA's is aligned: Upholding of professional standards and qualities (personal/professional) F Protection of the public interest u n Integrity d a Objectivity m Professional competence e n Enshrined in a 'Code of Ethics' or 'Code of Conduct' t Confidentiality Codes can be or Principles and a Professional behaviour rules-based to frameworks to l account for every guide behaviour s possible situation via: reliability, responsibility, timeliness, courtesy, respect

T Self-interest Professional safeguards HR Self-review Entry requirements E Advocacy Training requirements TA Familiarity CPD requirements S Intimidation Professional standards Importance of independence Professional monitoring Disciplinary procedures Independence promotes: External review Reliability of financial information Credibility of financial information Safeguards in practice Value for money of audit Peer review Credibility of profession Independent consultation Partner/staff rotation Page 197 Discussion/disclosure to audit committee Reperformance by another firm 19: Ethical considerations

A framework Management The ethical Ethics in Accountants of rules accountability environment organisations and ethics

Page 199 19: Ethical considerations

A framework Management The ethical Ethics in Accountants of rules accountability environment organisations and ethics Advocacy threat Familiarity threat Where accountants take client's part, act as their Family relationships between client and firm advocate or will only earn fees from client if Personal relationships between client and firm successful outcome is achieved (contingent fees). Long association with client Examples include provision of legal service and Recent service with client corporate finance advice. Future employment with client Conflicts of interest Intimidation threat These can arise from accountants acting for clients Close business relationships with whom they are in dispute, eg over quality of Family relationships work. It can also arise through disputes between two Personal relationships clients for whom accountants are acting. Staff employed by client Litigation

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