CAF-8 · Chapter 13 · Question 20 of 20
What is the primary purpose of the 'Conceptual Framework' approach within the ICAP Code of Ethics?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) To establish a methodology for chartered accountants to identify, evaluate, and address threats to compliance with the fundamental principles.
Explanation
Because it is impossible to list every ethical dilemma, the Conceptual Framework provides a principle-based approach. It requires the accountant to actively identify threats, evaluate their significance, and apply safeguards to reduce them to an acceptable level.
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