6. The Framework

In Review

Use the ACCA Rulebook, section 3 Code of Ethics and Conduct, to answer the following questions.

  1. Which section of the rulebook defines the fundamental principles?





  2. Which of the following threats are included in the Code of Ethics and Conduct?

    Self-interest threat

    Self-review threat

    Advocacy threat

    All of the above

  3. The definition of ‘close family’ in relation to ACCA’s Code of Ethics and Conduct is:

    a parent, child or sibling who is not an immediate family member

    a spouse or child

    a sibling or parent

    a parent, child, sibling or their spouses

  4. Whom is bound by ACCA’s Code of ethics and Conduct?

    All Members

    All professional accountants

    All members and students

    All members and affiliates

  5. You act for a partnership, preparing accounts for the partnership and providing consultancy to the partners and preparing their tax computations and returns. The partners are now in dispute, and one of the partners wishes to buy the share of the business of the other. The value of the goodwill has become a further area of dispute, and the partners have asked you to assist with the valuation.  Which of the following is a safeguard that should be considered in order to manage this conflict of interest?

    You ask another firm of accountants to carry out the valuation and report to you, accepting responsibility for the valuation as your own.

    You obtain the partners’ written agreement that they will accept the valuation that you place on the goodwill.

    You value the goodwill, but advise both partners to seek additional independent advice.

    You cease acting for both parties immediately, and return all future correspondence received from them unopened.

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