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dexazuxo's version from 2017-05-13 13:36

Section

Question Answer
What are the three levels of regulation?Government legislation, semi statutory, self regulation by professional bodies
6 roles of FRC- Sets UK Corporate Governance Code and mentors compliance by companies
- Oversees self regulation of accounting and auditing
- Acts as ultimate disciplinary board of accounting
- Monitors quality of audit and financial reporting of large entities
- Sets UK FRS and FAS
Threats to professional standards1. Advocacy: Becomes attached to 1 particular view
2. Familiarity: Too close and sympathetic to interest of 1 group
3. Self review: Judges own work. Does not submit to peer review.
4. Self interest: Holds own dominant interest in financial outcome
5. Intimidation: deferred by threats
ICAEW 5 principles: CIPOP: Confidentiality, Integrity, Professional competence, Objectivity, Professional behaviour
What is the objective of Financial Reporting?To provide a true and fair view of a companies, financial performance, financial position, changes in this, and cash flow to make managers accountable to investors.
Statutory: Companies Act 20061. Unitary board, 2. Directors powers and responsibility, directors interest in contracts
Comply or explainApart of the corporate governance code which says that all rules and responsibilities must be followed and complied with, if it is not then must explain why. This is the UK approach
What are the 5 sections of corporate governance code?leadership, effectiveness, accountability, remuneration, relationship with shareholders.
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