BPT Summary questions and answers
ETHICS & LEGISLATION (chapter 1) - --
Fundamental Principles - - Integrity
- Objectivity
- Competence + due care
- Confidentiality
- Professional behaviour
Threats to Fundamental Principles - - Self-interest
- Self-review
- Advocacy
- Familiarity
- Intimidation
Ethical Safeguards - - Professional
- Regulatory
- Legislative
- Workplace
- Need to identify, evaluate + respond to threats to compliance + reduce
to acceptable level
- If impossible: must remove from engagements
,BPT Summary questions and answers
PCRT: Standards when Advising on Tax Planning - - Client specific
- Lawful
- Disclosure + transparency
- Tax planning arrangements
- Professional judgement + appropriate documentation
Conflict of interest - - Accountant should take reasonable steps to avoid,
identify + resolve when conflict of interest may arise
- When conflict arises: safeguards should be put in place inc. notifying
relevant parties
- If conflict → threat to fundamental principles that can't be reduced to
acceptable level: accountant should consider resignation from
conflicting engagements
- eg. client interests + firm, financial involvements between client + firm,
acting for both partners in divorce, directors of competing businesses,
secondment to HMRC
Ethical Conflict Resolution - - Relevant parties
- Relevant facts
- Ethical issues
- Fundamental principles
- Internal procedures
- Alternative actions
,BPT Summary questions and answers
- If conflict can't be resolved: should refuse to remain associated with
situation
When to disclose info? - - Authorised/permitted by law
- Required by law
- Professional duty/right to disclose + not prohibited by law
Irregularity → overpayment of tax - - Advise client of irregularity as
soon as possible
- Advise client of possibility of overpayment claim
Irregularity → underpayment of tax - - Check engagement letter to see
if gives authority to disclose
- If no authority: advise client about need to disclose + penalties
- Consider obligations under money laundering legislation
- Keep records of discussions + advice
New client procedures - - Client + engagement acceptance
- Engagement letters
- Agent/principal
- Responsibility for tax returns
- Professional indemnity insurance
, BPT Summary questions and answers
- Data protection
Data protection + data security - - Accountants must ensure data
protection rules under GDPR
- Info Commissioner's Office (ICO) monitors compliance
- PCRT advises steps taken to ensure security of client data online (eg.
passwords, physical security)
Senior Accounting Officers (SAO) - - Required for large firms (turnover >
£200m/balance sheet total > £2bn)
- Responsible for confirming systems = adequate + state inadequacies
- Penalties for non-compliance
Money Laundering - - Register with regulatory authority
- Appoint MLRO
- Train staff
- Establish internal procedures
- Carry out customer due diligence + check customer ID
- Report suspicions to NCA
Evasion - - Illegal
- Penalties for enablers of offshore evasion
ETHICS & LEGISLATION (chapter 1) - --
Fundamental Principles - - Integrity
- Objectivity
- Competence + due care
- Confidentiality
- Professional behaviour
Threats to Fundamental Principles - - Self-interest
- Self-review
- Advocacy
- Familiarity
- Intimidation
Ethical Safeguards - - Professional
- Regulatory
- Legislative
- Workplace
- Need to identify, evaluate + respond to threats to compliance + reduce
to acceptable level
- If impossible: must remove from engagements
,BPT Summary questions and answers
PCRT: Standards when Advising on Tax Planning - - Client specific
- Lawful
- Disclosure + transparency
- Tax planning arrangements
- Professional judgement + appropriate documentation
Conflict of interest - - Accountant should take reasonable steps to avoid,
identify + resolve when conflict of interest may arise
- When conflict arises: safeguards should be put in place inc. notifying
relevant parties
- If conflict → threat to fundamental principles that can't be reduced to
acceptable level: accountant should consider resignation from
conflicting engagements
- eg. client interests + firm, financial involvements between client + firm,
acting for both partners in divorce, directors of competing businesses,
secondment to HMRC
Ethical Conflict Resolution - - Relevant parties
- Relevant facts
- Ethical issues
- Fundamental principles
- Internal procedures
- Alternative actions
,BPT Summary questions and answers
- If conflict can't be resolved: should refuse to remain associated with
situation
When to disclose info? - - Authorised/permitted by law
- Required by law
- Professional duty/right to disclose + not prohibited by law
Irregularity → overpayment of tax - - Advise client of irregularity as
soon as possible
- Advise client of possibility of overpayment claim
Irregularity → underpayment of tax - - Check engagement letter to see
if gives authority to disclose
- If no authority: advise client about need to disclose + penalties
- Consider obligations under money laundering legislation
- Keep records of discussions + advice
New client procedures - - Client + engagement acceptance
- Engagement letters
- Agent/principal
- Responsibility for tax returns
- Professional indemnity insurance
, BPT Summary questions and answers
- Data protection
Data protection + data security - - Accountants must ensure data
protection rules under GDPR
- Info Commissioner's Office (ICO) monitors compliance
- PCRT advises steps taken to ensure security of client data online (eg.
passwords, physical security)
Senior Accounting Officers (SAO) - - Required for large firms (turnover >
£200m/balance sheet total > £2bn)
- Responsible for confirming systems = adequate + state inadequacies
- Penalties for non-compliance
Money Laundering - - Register with regulatory authority
- Appoint MLRO
- Train staff
- Establish internal procedures
- Carry out customer due diligence + check customer ID
- Report suspicions to NCA
Evasion - - Illegal
- Penalties for enablers of offshore evasion
