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
When a professional accountant encounters an ethical conflict that cannot be resolved internally, the ICAEW Code suggests as a last resort:
Answer: Resigning from the engagement or organisation
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.
Professional competence under the ICAEW Code requires accountants to:
Answer: Maintain knowledge and skills at the level required to provide competent professional service
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.
An advocacy threat arises when an accountant:
Answer: Promotes a client's position to the point of compromising objectivity
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.
Under UK anti-money laundering legislation, a professional accountant who suspects money laundering must:
Answer: Make an internal or external Suspicious Activity Report (SAR) to the National Crime Agency
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.
The ICAEW Code of Ethics is based on the Code issued by:
Answer: The International Ethics Standards Board for Accountants (IESBA)
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.
When accepting a new client, the ICAEW Code requires the accountant to:
Answer: Consider whether acceptance would create threats to fundamental principles and perform client due diligence
Before accepting a new client, accountants should identify threats to compliance with fundamental principles (e.g., conflicts of interest, integrity concerns) and conduct client due diligence including KYC and anti-money laundering checks.