Professional ethical principles - FAB/F8

International Federation of Accountants (IFAC) developed fundamental ethical principles for all professional accountants to follow and ACCA has adopted the similar principles. They can be examined in many ACCA papers, not only FAB and F8. It is relatively straightforward in FAB and slightly harder in F8. This article doesn't consider how it can be asked in P1.

Fundamental principles - COPPI or PICOP
1. Confidentiality - members should respect the information obtained as a result of professional and business relationships. They should not use such information for personal advantage nor disclose them without permission obtained.
2. Objectivity - judgement should not be influenced by bias, conflict of interest or undue influence by others. Professional or business judgement should be made fairly.
3. Professional competence and due care - members should continue to maintain professional knowledge and skill, undertaking various continuous professional development (CPD) programmes. Members should also act diligently when providing service.
4. Professional behaviour - members should avoid any actions that can discredit the profession, complying with laws and regulations will be one thing, behave in courtesy and consideration is another thing.
5. Integrity - members should be straightforward and honest in all professional or business relationships. Integrity is the highest level of honesty which also implies the need of fair dealing and truthfulness.

The ethical threats are also identified - FASSI
1. Familiarity threat - eg. audited the client for 10 years.
2. Advocacy threat - eg. represent client in a court case.
3. Self-interest threat - eg. holding shares in client's company.
4. Self-review threat - eg. providing audit and consultancy services.
5. Intimidation threat - eg. wife working in client's company.

FAB
In FAB, you only need to understand the above principles. Question may simply state the definition and ask you which is the principle. Also, question can ask you the ethical threats that can be found in the short case given. Always imagine that you are a very ethical person when you face any ethic questions, they are very straightforward and yet essential at higher level papers.

F8
Common question will require you to explain ethical threats and recommend safeguards from a case. Again, it is important that you become ethical first, then you might identify the points easily (be careful, stating the threat is "identify", to explain you need to understand why it can be a threat, this is the real F8 level). Safeguards are, most of the time, common sense but you need to practice questions.

Remember the above ideas for the rest of your professional life, we are professionals not only because of our technical competence, but because we keep professional ethics in mind and act in public interest. By entering this route means that we have sacrificed self-interest and we will do anything as long as it serves the public interest. :)