ACA BPT questions and answers
What are the fundamental principles? - Integrity
Objectivity
Professional competence and due care
Confidentiality
Professional behaviour
Define integrity. - Straightforward and honest in all professional and business
relationships.
Define objectivity. - Shall not allow bias, conflict of interest or undue influence of
others to overrise professional or business judgements.
Define professional competence and due care. - Maintain professional knowledge
and skill and act diligently in accordance with applicable technical and
professional standards.
Define confidentiality. - Respect confidentiality and refrain from disclosing such
information without proper and specific authority unless specific legal or
professional right or duty to disclose.
Refrain from using such information for their personal advantage of third parties.
Define professional behaviour. - Comply with relevant laws and regulations and
avoid any action that discredits the profession.
What are the threats to fundamental principles? - Self interest threats
Self review threats
, ACA BPT questions and answers
Advocacy threats
Familiarity threats
Intimidation threats
Define self interest threats. - Financial or other interests of an accountant or close
family member of the client.
Define self interest review. - Occur when a previous judgement needs to be re-
evaluated by the accountant responsible for that judgement.
Define advocacy threat. - Occur when an accountant promotes a position or
opinion to the point that objectivity maybe compromised.
Define familiarity threat. - Occur because of a close relationship an accountant
becomes too sympathetic to the interest of others.
Define intimidation threat. - Occurs when an accountant may be deterred from
acting objectively by threats, actual or perceived.
What are the safeguards to mitigate threats? - Educational training and
experience requirements for entry.
Continuing professional development (CPD).
Corporate governance regulations.
Professional standards.
Professional or regulatory monitoring and disciplinary procedures.
What are the fundamental principles? - Integrity
Objectivity
Professional competence and due care
Confidentiality
Professional behaviour
Define integrity. - Straightforward and honest in all professional and business
relationships.
Define objectivity. - Shall not allow bias, conflict of interest or undue influence of
others to overrise professional or business judgements.
Define professional competence and due care. - Maintain professional knowledge
and skill and act diligently in accordance with applicable technical and
professional standards.
Define confidentiality. - Respect confidentiality and refrain from disclosing such
information without proper and specific authority unless specific legal or
professional right or duty to disclose.
Refrain from using such information for their personal advantage of third parties.
Define professional behaviour. - Comply with relevant laws and regulations and
avoid any action that discredits the profession.
What are the threats to fundamental principles? - Self interest threats
Self review threats
, ACA BPT questions and answers
Advocacy threats
Familiarity threats
Intimidation threats
Define self interest threats. - Financial or other interests of an accountant or close
family member of the client.
Define self interest review. - Occur when a previous judgement needs to be re-
evaluated by the accountant responsible for that judgement.
Define advocacy threat. - Occur when an accountant promotes a position or
opinion to the point that objectivity maybe compromised.
Define familiarity threat. - Occur because of a close relationship an accountant
becomes too sympathetic to the interest of others.
Define intimidation threat. - Occurs when an accountant may be deterred from
acting objectively by threats, actual or perceived.
What are the safeguards to mitigate threats? - Educational training and
experience requirements for entry.
Continuing professional development (CPD).
Corporate governance regulations.
Professional standards.
Professional or regulatory monitoring and disciplinary procedures.
