Acca aa s21 Notes

5. Regulation
Auditors are regulated by:
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Professional bodies (eg ACCA)
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International bodies (eg IFAC, the International Federation of Accountants)
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National bodies (in the UK the FRC, Financial Reporting Council)
The purpose of IFAC is to serve the public interest by establishing and promoting adherence to high-
quality professional standards. It has a number of boards including:
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IAASB
(International Auditing and Assurance Standards Board): Sets International Standards on 
Auditing (ISAs) and other assurance standards 
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IESBA 
(International Ethics Standards Board for Accountants): Issues the International Code of 
Ethics for Professional Accountants.
The IAASB's ISAs are adopted by the FRC in the UK which has local regulatory power. The IESBA's Code 
has been adopted by ACCA in its Code of Ethics and Conduct. 
WHEN YOU FINISHED THIS CHAPTER YOU SHOULD ATTEMPT THE 
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Chapter 4
PROFESSIONAL ETHICS
1. Introduction
The ACCA Code of Ethics and Conduct ('the Code') sets out certain fundamental principles about how 
its members should behave. It also recognises how its members could be subject to certain threats 
which would compromise their behaviour and suggests ways in which members can safeguard 
themselves against the operation of those threats.
The Code applies to all members of ACCA and also to all ACCA students. It applies not only to those in 
public practice ('auditors') but also those in industry and commerce ('in business').
The conceptual framework approach to professional ethics recognises that there are:
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Fundamental