Professional Ethics (ICAEW Code) Flashcards
6 cards from real ACA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Professional Ethics (ICAEW Code) flashcards as text
The principle of professional competence requires that accountants only accept work where:
Answer: They have the necessary competence or can acquire it in time
Accountants must only accept engagements where they have or can acquire the professional competence needed to complete the work satisfactorily; accepting work beyond one's competence risks harming clients.
Under UK GDPR and the Data Protection Act 2018, a professional accountant holding client personal data must:
Answer: Process personal data lawfully, fairly, and transparently, and ensure appropriate security measures
UK GDPR requires lawful, fair, and transparent processing of personal data with appropriate security. For accountants, this includes limiting data retention, ensuring client data is secure, and only using it for specified purposes.
When an ICAEW member disagrees with a technical position taken by management on a significant accounting matter, the appropriate first step is:
Answer: Raise the concern with management or those charged with governance
The appropriate first step is to raise the technical concern internally with management and, if unresolved, escalate to those charged with governance (e.g., audit committee), before considering more drastic action.
Money laundering tipping-off under the Proceeds of Crime Act 2002 means:
Answer: Telling the subject of a Suspicious Activity Report that a SAR has been filed, or that an investigation is under way
Tipping off is a criminal offence under POCA 2002: telling the suspect that they are being investigated or that a SAR has been filed could prejudice the investigation. Accountants must maintain secrecy.
Under the ICAEW Code, a conflict of interest between two audit clients should be managed by:
Answer: Disclosing the conflict, obtaining informed consent, and using information barriers where appropriate
The Code requires disclosure of the conflict to affected parties, obtaining informed consent, and implementing safeguards such as separate engagement teams and information barriers (Chinese walls) to manage the conflict.
The ICAEW Integrity Statement requires members to behave with integrity in all:
Answer: Professional and business relationships
The integrity principle applies comprehensively to all professional and business relationships — not just client-facing work or written communications. Integrity is a constant obligation, not a selective one.