Podcast
Questions and Answers
What is a threat to professional competence in advising on corporate reporting?
What is a threat to professional competence in advising on corporate reporting?
- Incomplete or restricted information (correct)
- Financial interest in the company
- Lack of resources for research
- Inducement to encourage unethical behaviour
Which of the following is a threat to objectivity in advising on corporate reporting?
Which of the following is a threat to objectivity in advising on corporate reporting?
- Incomplete or restricted information
- Inadequate resources for the engagement
- Financial interest in the company's success (correct)
- Insufficient experience or training
According to the ACCA Code of Ethics and Conduct, what must accountants avoid in reports or returns communications?
According to the ACCA Code of Ethics and Conduct, what must accountants avoid in reports or returns communications?
- Providing reports that are too detailed
- Associating with reports that contain materially misleading statements (correct)
- Making estimates that are too conservative
- Including unnecessary disclosures
What is a consequence of unethical financial reporting?
What is a consequence of unethical financial reporting?
What is the most common type of fraud in financial reporting?
What is the most common type of fraud in financial reporting?
What is an example of unethical behaviour in financial reporting?
What is an example of unethical behaviour in financial reporting?
Why is it important to follow laws and rules of accounting when preparing financial reports?
Why is it important to follow laws and rules of accounting when preparing financial reports?
What is a consequence of a company going under due to unethical financial reporting?
What is a consequence of a company going under due to unethical financial reporting?
Flashcards are hidden until you start studying
Study Notes
Threats to Professional Competence
- Insufficient time can threaten professional competence in advising on corporate reporting
- Incomplete, restricted, or inadequate information can also pose a threat
- Lack of sufficient experience, training, or education can compromise professional competence
- Inadequate resources can further hinder professional competence
Threats to Objectivity
- Financial interests, such as profit-related bonuses or share options, can threaten objectivity
- Inducements that encourage unethical behavior can also compromise objectivity
ACCA Code of Ethics and Conduct
- Accountants must not be associated with reports or returns that contain materially misleading statements
- Accountants must not be associated with reports or returns that contain statements or information furnished recklessly
- Accountants must not be associated with reports or returns that have been prepared with bias
- Accountants must not be associated with reports or returns that omit required information, which could lead to misleading conclusions
Ethical Financial Reporting
- Accountants must follow laws and rules of accounting when preparing financial reports
- Unethical behavior in financial reporting can lead to incorrect financial reports, which can have severe consequences
- Consequences of unethical financial reporting include:
- Shareholders losing money
- Employees losing jobs
- Impact on the community
- Government losing tax revenue
- Customers losing their source of goods
- Common frauds in financial reporting include:
- Improper revenue recognition
- Overstated asset valuations
- Capitalizing costs that should be expensed against profit
- Non-recognition of impairment losses
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
