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 five fundamental principles in the ICAEW Code of Ethics are integrity, objectivity, professional competence and due care, confidentiality, and:
Answer: Professional behaviour
The five fundamental principles are: integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour. Independence is a concept linked to objectivity but is not itself a fundamental principle.
The principle of confidentiality requires a professional accountant NOT to disclose client information EXCEPT when:
Answer: Disclosure is required by law, authorised by the client, or there is a professional duty or right to disclose
Confidentiality may be overridden when disclosure is legally required (e.g., money laundering), authorised by the client, or where there is a professional duty or right to disclose in the public interest.
The self-interest threat to objectivity arises when:
Answer: The accountant has a financial interest in the client
A self-interest threat occurs when a financial or other interest in the client could inappropriately influence the accountant's behaviour or judgement — for example, holding shares in an audit client.
Which of the following best describes an intimidation threat?
Answer: A client threatens litigation or other action to influence the accountant's opinion
Intimidation threats arise when an accountant is deterred from acting objectively by actual or perceived threats from a client or employer — for example, threats of litigation or dismissal.
Under the ICAEW Code, when should an accountant refuse to follow management's instructions?
Answer: When following those instructions would result in a breach of fundamental principles
The ICAEW Code requires professional accountants to refuse instructions that would involve a breach of the fundamental ethical principles, such as producing misleading financial information.
The familiarity threat arises when:
Answer: A long-standing relationship causes the accountant to be too sympathetic to the client's interests
Familiarity threats develop over time — a close or long-standing relationship with a client or colleague can erode professional scepticism and lead to uncritical acceptance of their judgement.