ACA Professional Ethics (ICAEW Code) 2

Question 1

When a professional accountant encounters an ethical conflict that cannot be resolved internally, the ICAEW Code suggests as a last resort:

Accepted Answer

Resigning from the engagement or organisation

Answer

If internal escalation, consultation with professional advisers, and other steps fail to resolve an ethical conflict, the accountant may need to resign from the engagement or from the organisation as a last resort.

Question 2

Professional competence under the ICAEW Code requires accountants to:

Accepted Answer

Maintain knowledge and skills at the level required to provide competent professional service

Answer

The principle requires accountants to maintain professional knowledge and skills at the level needed to ensure clients or employers receive competent service based on current technical and professional standards.

Question 3

An advocacy threat arises when an accountant:

Accepted Answer

Promotes a client's position to the point of compromising objectivity

Answer

An advocacy threat arises when the accountant promotes a client's position (e.g., in litigation or during a takeover) so strongly that objectivity is compromised and they can no longer act impartially.

Question 4

Under UK anti-money laundering legislation, a professional accountant who suspects money laundering must:

Accepted Answer

Make an internal or external Suspicious Activity Report (SAR) to the National Crime Agency

Answer

Under the Proceeds of Crime Act 2002, accountants in regulated sectors must file a SAR with the NCA (or internal MLRO) when they know or suspect money laundering, and must not tip off the client.

Question 5

The ICAEW Code of Ethics is based on the Code issued by:

Accepted Answer

The International Ethics Standards Board for Accountants (IESBA)

Answer

The ICAEW Code of Ethics is based on and substantially equivalent to the IESBA Code of Ethics for Professional Accountants, ensuring consistency with international professional standards.

ACA ICAEW Practice Test

ACA ICAEW Practice Test

ACA Professional Ethics (ICAEW Code) 2