Accountability

Question 1

Accountability def

Answer 1

Being able to give account of what has happened and translate good intentions into actions.

Question 2

Benefit of accountability

Answer 2

It builds trust with stakeholders and includes

people to explain decisions and actions

Ensuring someone is responsible if it goes wrong.

Question 3

Transparency

Answer 3

Being open to public scrutiny, allowing actions, decisions and processes to be visible and understandable to others.

Question 4

Governance

Answer 4

The system by which an organisation is directed and controlled.

Good governance includes

achieving objectives in a sustainable way.

Properly directing and controlling an organisation

Question 5

ICAEW key role

Answer 5

Maintenance of public trust as primary regulator of its members

Question 6

ICAEW disciplinary regulations and consequences

Answer 6

ICAEW can take action against students, members or member firms.

They take action when a person/firm has

Demonstrated professional incompetence- work not at standard.

Committed misconduct- committing ana ct discrediting the profession.

Breached regulations of ICAEW e.g code of ethics

Been convicted of a serious offense in a court of law.

Question 7

Professional conduct ICAEW

Answer 7

Students, members, affiliates and member firms are expected to demonstrate high standards and avoid any actions that may discredit the profession.

They must

Obey ICAEW regulations

Continue professional development to maintain expertise

Implement and follow ICAEW code of ethics.

Question 8

Duty to report

Answer 8

If an ICAEW member, student or firm is aware that someone else may be liable to disciplinary action, they have a duty to report it to the ICAEW

Question 9

Financial reporting council

Answer 9

They have oversight over ICAEW.

Their roles are

Oversight of how accounting bodies e.g ICAEW regulate members who are not statutory auditors (not based on law but on standards)

Legal/statutory Oversight of regulation of statutory auditors via professional bodies (RSB).
RSB set rules about who can be an auditor, the FRC
will check the RSB are regulating the auditor properly.

Independent monitor of audit quality for PIES.

Question 10

What can the FRC do

Answer 10

Take action against individuals or firms for

breaching standards relating to the audit of PIES

Any misconduct