Chapter 1 - Ethics

Question 1

How cn individual judgement vary when writting financial statments?

Answer 1

• Valuation of buildings
• Development costs
• Brands

Question 2

What 2 companies have produced coodes of ethics?

Answer 2

• IFAC
• ICEAW

Question 3

What are the 5 fundermental principles of proffesional ethics that accountants must adhere to set by IFAC?

Answer 3

1. Integrity → honest in profesional and business relationships
2. Objectivity → not be bias
3. Proffesional competence and due care → maintain knowledge and skills relative to current development
4. Confidentuality
5. Proffesional behaviour → apply to relevent laws and avoid actions tat discredits the prfession

Question 4

What does the ICEAW code state?

Answer 4

• Charted accountants are expected to demonstrate the highest standars of pefessionalism
• Take into concideratin public inerest.

Question 5

WHat is the advantage of the IFAC and ICEAW being principle not rule based?

Answer 5

• The onus is on the individual to consider the situation.
• Principles encourange compliance _{(rules are made to be broken)}
• Adaptable to diferent situations
• Principles can prohibit certain situatiuons were safe guarding is not feasible.