AAT Level 3- Professional Ethics Review Questions with Answers

Five fundamental principles Integrity Objectivity Professional (and technical) competence and due care Confidentiality Professional behaviour 3 areas where registration with a professional body is essential: Audit Investment business Insolvency 3 areas of technical knowledge to keep up to date with Accounting standards Tax legislation Money Laundering Five threats Intimidation Advocacy Self Interest Familiarity Self Review You must not handle client money when... ... the money is linked to investment ... there is reason to believe it is connected to illegal activities 3 types of fraud Fraud by false representation Fraud by failing to disclose information Fraud by abuse of position What is fraud by false representation? When a statement is untrue, and the person making it knows it to be untrue. What are 2 grounds a client can sue their accountant? Breach of contract (civil claim - damages) Professional negligence (no contract required, substantial damages) When is a code of practice a *statutory* code? When it is defined by government or legislation What are the 3 potential threats to the principle of competence and due care? Time pressure Lack of resources Lack of experience