T8 principles

Question 1

Parts of the ICAEW code of ethics

Answer 1

It is principled base and follows same structure as IESBA code of ethics with some parts added.

Parts:

Complying with the code, fundamental principles and conceptual framework

Professional accountants in business

Professional accountants in public practice

International independence standards

Additional sections

Question 2

Parts of ICAEW code:

Complying with the code, fundamental principles and conceptual framework

Answer 2

Includes fundamental principles and conceptual framework applicable to accountants.

It explains that it is a principled based approach

Helps identify threats to fundamental principles, evaluate the threats and reduce the threat to acceptable levels.

Question 3

Structure of each part

Answer 3

Each part of the code is in sections and the structure is as follows:

Introduction- focus on nature of threats to compliance and fundamental principles/terminology.

Requirement in terms of obligations for accountants to full-fill

Application material containing context.

Question 4

Parts of ICAEW code:

International independence standards

Answer 4

Guidance on maintaining independence for accountants in practice.

It focuses on both independence for audit engagements and for assurance engagements that aren’t audit and review engagements.

Question 5

Parts of ICAEW code:

Professional accountants in business and public practice

Answer 5

Business: Provides Material applicable to accountants in business.

Public practice: Provides material for accountants working in practice.

For example areas requiring ethical guidance e.g conflicts of interest, fees and remuneration.

Question 6

Parts of ICAEW code:

Additional sections

Answer 6

Includes glossary and abbreviations

Content for insolvency practitioners

Question 7

Fundamental principles of ethics

Answer 7

Integrity- being straightforward and honest in all business relationships

Objectivity- Avoid judgements being compromised by bias conflicts of interest or undue influence of others

Professional competence and due care- Maintain professional knowledge and skill required.
Act diligently in accordance of technical and professional standards

professional behaviour- Comply with laws and avoid behaviour that may discredit the profession

confidentiality