ICAEW ARF · Chapter 10 · Question 12 of 12
Which of the following best describes the conceptual framework approach to ethics in the ICAEW Code?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Identify threats to compliance with the fundamental principles, evaluate their significance, and eliminate them or reduce them to an acceptable level, declining or ending the work if this is not possible
Explanation
The Code uses a principles-based conceptual framework rather than a complete set of rules. Accountants identify threats, evaluate them using the reasonable and informed third party test, and address them by eliminating the circumstances, applying safeguards or declining the engagement. Disclosure alone, or passing decisions to the client, does not meet these requirements.
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