ACA Professional Ethics (ICAEW Code)

Question 1

The five fundamental principles in the ICAEW Code of Ethics are integrity, objectivity, professional competence and due care, confidentiality, and:

Accepted Answer

Professional behaviour

Answer

Independence

Answer

Transparency

Answer

Accountability

Question 2

The principle of confidentiality requires a professional accountant NOT to disclose client information EXCEPT when:

Accepted Answer

Disclosure is required by law, authorised by the client, or there is a professional duty or right to disclose

Answer

A colleague requests it

Answer

The client is suspected of tax evasion

Answer

The information is more than two years old

Question 3

The self-interest threat to objectivity arises when:

Accepted Answer

The accountant has a financial interest in the client

Answer

The accountant reviews their own work

Answer

A third party applies pressure on the accountant

Answer

The accountant has a long-standing relationship with the client

Question 4

Which of the following best describes an intimidation threat?

Accepted Answer

A client threatens litigation or other action to influence the accountant's opinion

Answer

An accountant is afraid of making a technical error

Answer

An accountant is too familiar with the client to be objective

Answer

The accountant audits their own previous work

Question 5

Under the ICAEW Code, when should an accountant refuse to follow management's instructions?

Accepted Answer

When following those instructions would result in a breach of fundamental principles

Answer

Whenever they personally disagree with a business decision

Answer

When the instructions conflict with budget targets

Answer

When a colleague raises an objection

Question 6

The familiarity threat arises when:

Accepted Answer

A long-standing relationship causes the accountant to be too sympathetic to the client's interests

Answer

The auditor is new to the engagement

Answer

The accountant has a financial interest in the client

Answer

The accountant advocates for the client in a legal dispute