Scribd
Upload
25 views3 pages

Part 19

Chapter 8 discusses the accountancy profession, outlining its objectives, characteristics, and regulatory requirements. It covers the roles of professional bodies like ICAEW, the importance of ethics, and the responsibilities of accountants in various contexts. Additionally, it addresses the implications of regulation and the responsibilities of accountants in relation to public interest and compliance with financial standards.

Uploaded by

ngochuongotuon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
25 views3 pages

Part 19

Chapter 8 discusses the accountancy profession, outlining its objectives, characteristics, and regulatory requirements. It covers the roles of professional bodies like ICAEW, the importance of ethics, and the responsibilities of accountants in various contexts. Additionally, it addresses the implications of regulation and the responsibilities of accountants in relation to public interest and compliance with financial standards.

Uploaded by

ngochuongotuon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

Chapter 8: The accountancy profession

1 The objective of the accountancy profession can best be described as:


A providing financial information about an entity to external users, which is useful to them in
making economic decisions and for assessing the stewardship of the entity’s management
B measurement, disclosure or provision of assurance about financial information that helps
managers, investors, tax authorities and other decision makers make resource allocation
decisions
C identifying, measuring, accumulating, analysing, preparing, interpreting and communicating
information used by management to plan, evaluate and control an entity and to assure
appropriate use of and accountability for its resources
D managing all the processes associated with the raising and use of financial resources in a
business
LO 4a

2 Which of the following element is least likely to characterise a profession?


A Restrictions on membership to ensure the skill and competence of members
B A high degree of autonomy and independence
C Core values are established which members are expected to maintain
D The profession’s rules and regulations are established solely by government legislation
LO 4a

3 Professions often set out codes of ethics and conduct. These are an example of which common
attribute of professions?
A Professional values
B Self-regulation
C Co-regulation
D Formal regulatory process
LO 4a

4 Legislation requires certain activities to be carried out by members of bodies that are ‘recognised
professional regulators’.
Requirement
Which three of the following activities are included in such requirements?
A Insolvency
B Management consultancy
C Investment business
D Taxation
E Payroll
F Statutory audit
LO 4b

5 Paula recently established her own accountancy practice from small retail premises in Hightown. She
operates as a sole trader. Paula passed the last of her ICAEW examinations last month although she is
not yet permitted to offer statutory audit, insolvency, investment business or probate services. She
has already been successful in attracting several clients to her new practice. She has not yet become

ICAEW 2023 8: The accountancy profession 51


a member of ICAEW but she is registered with an approved body for supervision under the money
laundering regulations.
Which of the following statements is correct?
Requirement
A Paula cannot call herself an accountant.
B ICAEW can legally stop Paula from practising as a sole trader.
C Paula can offer any accountancy services she considers appropriate.
D Paula can offer any accountancy services except those in the reserved areas.
LO 4b

6 In relation to which of the following does the Financial Reporting Council have statutory powers?
A Regulation of the auditing profession
B Professional discipline of accountants
C Registration of students into the accountancy profession
D Continuing professional education and development
LO 4b

7 Upholding professional ethics is a key part of being a professional accountant. Which of the
following duties of an accountant only applies to those employed in the public sector?
A Protect the public interest
B Apply laws and regulations
C Protect the profession’s reputation and standing
D Protect taxpayers’ money
LO 4b

8 Chris runs his own printing company. He is experiencing financial difficulties and some of his credit
suppliers are threatening to take him to court. He needs some advice and has seen an advertisement
in his local paper for an accountancy service that is much cheaper than he expected. He calls the
accountant to check that the price is not a misprint and is surprised at some of the answers he is
given to his questions.
The accountant made the following statements to Chris.
Statement (1): Anyone is free to advertise as an ‘accountant’ and offer the full range of accountancy
services, with no exceptions.
Statement (2): ICAEW members are open to competition from anyone, whether professionally
qualified or not, who chooses to enter the market.
Statement (3): There is no legal requirement for an accountant to be a paid-up member of one of the
CCAB bodies.
Which of the following statements are true?
Requirement
A (1) and (2) only
B (2) and (3) only
C (1) and (3) only
D (1), (2) and (3)
LO 4b

9 The following statements have been made about the purpose of regulating professions.

52 Business, Technology and Finance ICAEW 2023


Statement (1): Regulation of professions should protect the public from being misled or from
suffering from abuse of power through knowledge or monopoly.
Statement (2): Regulation of professions should protect the profession’s vested interests from
competition in order to maintain public trust.
Identify whether each statement is true or false.
Requirement
A Statement (1) true; Statement (2) false
B Statement (1) false; Statement (2) false
C Statement (1) true; Statement (2) true
D Statement (1) false; Statement (2) true
LO 4a, 4b

10 The financial statements of Anson plc, a listed company, depart from relevant accounting standards
and the provisions of the Companies Act 2006. The company is likely to be referred to which of the
following regulatory bodies?
A The Prudential Regulation Authority
B The Financial Conduct Authority
C ICAEW
D The Financial Reporting Council
LO 4b

11 The following statements concern the role of the ICAEW.


Statement (1): The CCAB has delegated the responsibility for determining the eligibility to practice of
all accountants to the ICAEW.
Statement (2): The ICAEW is only responsible for discipline in respect of ICAEW members.
Requirement
Identify whether each statement is accurate.
A Statement (1) accurate; Statement (2) inaccurate
B Statement (1) inaccurate; Statement (2) inaccurate
C Statement (1) accurate; Statement (2) accurate
D Statement (1) inaccurate; Statement (2) accurate
LO 4a, 4b

12 Who is responsible for supervising member firms of the ICAEW in respect of anti-money laundering?
A The Financial Conduct Authority (FCA)
B The ICAEW
C The Office of Professional Body AML Supervision (OPBAS)
D HMRC
LO 4b

13 The following are potential actions that could be taken to help reduce climate change:
(1) Persuading organisations to take steps to tackle climate change
(2) Helping organisations to manage the significant risks that climate change brings
(3) Setting targets relating to climate change, comparing actual performance against targets and
interpreting the results

ICAEW 2023 8: The accountancy profession 53

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy