Podcast
Questions and Answers
The threat in the scenario is a ______ threat.
The threat in the scenario is a ______ threat.
SELF-INTEREST
The fundamental principle of ______ is threatened by allowing false information to influence judgement.
The fundamental principle of ______ is threatened by allowing false information to influence judgement.
OBJECTIVITY
Submitting false information to LHDN would breach the principle of ______.
Submitting false information to LHDN would breach the principle of ______.
INTEGRITY
Complying with relevant laws is part of ______ behaviour.
Complying with relevant laws is part of ______ behaviour.
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The ______ was produced and endorsed by seven major accounting and tax professional bodies in the UK.
The ______ was produced and endorsed by seven major accounting and tax professional bodies in the UK.
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The educational, training and experience requirements for entry into the profession are outlined in the ______ Competency Framework.
The educational, training and experience requirements for entry into the profession are outlined in the ______ Competency Framework.
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A key safeguard to prevent unethical behaviour is the ______ procedures available within a firm.
A key safeguard to prevent unethical behaviour is the ______ procedures available within a firm.
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The ______ body's Code outlines the requirements for professional conduct.
The ______ body's Code outlines the requirements for professional conduct.
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The threat of self-interest can be managed through ______ which may be created by the accounting profession, legislation, or regulation.
The threat of self-interest can be managed through ______ which may be created by the accounting profession, legislation, or regulation.
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Including false information in a tax return is against the ______.
Including false information in a tax return is against the ______.
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Study Notes
Confidentiality and Disclosure
- Authorised disclosure of confidential information is allowed when required by law, professional duty, or right to disclose, unless prohibited by law.
- Disclosure is also permitted when complying with quality review, responding to inquiries or investigations, or protecting professional interests in legal proceedings.
Conflict of Interest
- A conflict of interest may arise between the firm and the client, or between two conflicting clients managed by the same firm.
- Examples of conflict of interest scenarios include:
- Financial involvements between the client and the firm.
- Husband and wife in divorce settlement.
- Partnership and partners in their personal capacity.
- Professional accountant seconded to LHDN and two competing businesses.
- To resolve conflict of interest, identify significant threats, apply safeguards, notify clients/relevant parties, obtain consent, and use separate engagement teams.
Tax Planning Arrangements
- Professional accountants should not create, encourage, or promote tax planning arrangements that:
- Achieve results contrary to Parliament's clear intention.
- Are highly artificial or contrived.
- Seek to exploit legislation shortcomings.
- Members must exercise professional judgement and maintain appropriate documentation.
Tax Services
- The BY-LAWS (ON PROFESSIONAL ETHICS, CONDUCT AND PRACTICE) of MIA outline tax services, including:
- Tax return preparation.
- Tax calculations for accounting entries.
- Tax planning and advisory services.
- Tax services involving valuations.
- Assistance in resolving tax disputes.
Ethical Conflict Resolution
- Identify relevant facts, parties, and ethical issues involved.
- Consider fundamental principles related to the matter, such as objectivity, integrity, and professional behaviour.
- Established internal procedures and alternative courses of action should be considered.
- Confidentiality and disclosure of information should be evaluated.
Threats and Safeguards
- Threats to ethical behaviour, such as self-interest threats, can be mitigated by safeguards.
- Examples of safeguards include:
- Educational and training requirements.
- Continuing professional development requirements.
- Professional body's code and complaints procedures.
- Professional Conduct in Relation to Taxation (PCRT) guidelines.
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Description
Test your knowledge of the ethical principles and professional conduct guidelines for accountants. This quiz covers situations where confidential information can be disclosed, professional duties, and compliance with laws and regulations.
