Acca paper F1 fia diploma in Accounting and Business Accountant in Business (AB/fab) exam kit

(Total: 4 marks) 
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PRACTICE SIMULATION QUE S TIONS :
S E CTI ON 5
K APLA N PUBLISH ING 
189
6 
Ethics is a crucial part of operating as an accountancy professional. 
(a) 
The following are ethical safeguards that can be put in place to deal with ethical 
threats. 
A 
Setting of professional standards 
B 
Creation of internal business complaint procedures 
C 
Professional monitoring and disciplinary procedures 
D 
Ethics training for all professional accountants 
E 
Creation of ethical cultures in organisations 
F 
Ensuring openness and transparency between organisations and their 
stakeholders 
G 
Creation of corporate governance requirements 
H 
Creation of corporate codes of ethics 
Required: 
Write down which of the FOUR safeguards from (A-H) are typically put in place by 
professional accountancy bodies. 
(2 marks) 
(b) 
Below are listed some possible benefits. 
A Reassuring 
to 
investors 
B 
Improved motivation of employees 
C 
Significant time and cost savings for management 
D 
Less reporting needed to external stakeholders 
E 
Reduced need for external audit 
F Attractive 
to 
customers 
G Lower 
production 
costs 
H 
Reduced risk of onerous Government legislation 
Required: 
Write down FOUR of the benefits from the list above (A-H) which would typically 
be expected to arise from an organisation adopting strong business ethics. 
 
 (2 
marks) 
(Total: 4 marks) 
 
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