F8-Task 4-2.pdf

Confidentiality ? Professional accountants must respect the confidentiality of information acquired as a result of professional and business relationships. ? They should not disclose any such information to third parties without proper and specific authority or unless there is a legal or professional right or duty to disclose. ? Confidential information acquired as a result of professional and business relationships should not be used for the personal advantage of the professional accountant or third parties. The fundamental principles 4 Professional behavior ? Professional accountants should ensure they comply with relevant laws and regulations and should avoid any action that discredits the profession. The fundamental principles 5 (a) Explain each of the five fundamental principles of ACCAs Code of Ethics and Conduct. Compliance with the fundamental principles in ACCAs Code of Ethics and Conduct can be threatened in a number of ways. Required (b) List the five ethical threats to independence and objectivity and for each threat identify one example of a circumstance that may create the threat. Threats to fundamental principles Self-interest threat 自身利益威胁 Self-review threat 自我复核威胁 Advocacy threat 倾向性威胁 Familiarity threat 亲密关系威胁 Intimidation threat 胁迫威胁 Lecture example 1 Required You are a manager in the audit firm Check and Co which has annual revenue in the region of $2,400,000. The following situations have arisen with different audit clients of your firm. (a) Explain the ethical threats which may affect the independence of Check and Co in respect of each of the client audits, and (b) for each threat explain how it may be reduced. Check and Co (1) In an initial meeting with the finance director of Weadon Co, an audit client, you learn that the entire audit team will be invited to the companys annual summer social event, a weekend at an exclusive spa hotel. Answer to lecture example 1 Threats Safeguards Weadon Co This involves a sel