Key Concepts on Professional Conduct and Ethics in Accounting

These flashcards cover essential principles of professional conduct and ethics relevant to accounting, as discussed in the recent lecture.

What should students focus on to avoid missing marks in exams according to the lecture?

Students should focus on the specific paragraph referenced in each question.

What is CPC in the context of the lecture?

CPC refers to the Code of Professional Conduct for accountants and auditors.

What is crucial when answering exam questions regarding scenarios?

Each question must be answered based on the specific paragraph referred to in the question.

What happens if an auditor is involved with a client while receiving gifts?

This creates a self-interest threat to independence.

What are the five points students should cover when discussing threats to independence?

1. Identify the concern from the scenario. 2. State the threats involved. 3. Provide definitions from standards. 4. Discuss the significance of the threats. 5. Suggest safeguards.

What is an important principle in selecting candidates for the governance body?

The governing body should have a mix of executive and non-executive members.

What is a common error students make while answering ethical questions?

Students often fail to cite specific standards or sections relevant to their answers.

What constitutes a self-interest threat in auditing?

A self-interest threat arises when an auditor has a financial interest that could influence their judgment.

Why is familiarity a threat in auditing?

Familiarity occurs when an auditor is too close to the client, which can impair objectivity.

What is a safeguard that can be taken to mitigate threats to independence?

Having an objective external reviewer assess the audit work can serve as a safeguard.

What does the acronym HIA stand for?

HIA stands for Health Impact Assessment, though it can vary contextually in different fields.

What is the significance of marking in exam answers?

Mark allocation guides students on how extensively they should answer each part of a question.