Which statement best describes the relationship between the IESBA Code of Ethics, the ICAEW Code of Ethics and the FRC Ethical Standard?

Correct answer: A) The ICAEW Code is based on the IESBA Code with some additional UK requirements, while the FRC Ethical Standard applies to UK audits and certain other public interest assurance engagements and can impose stricter requirements

Explanation

The IESBA Code is the international code issued by the International Ethics Standards Board for Accountants, and the ICAEW Code is derived from it with some additional requirements and guidance. The FRC Ethical Standard is issued by the UK audit regulator and applies to statutory audits and certain other public interest assurance engagements in the UK, where it can impose stricter requirements, particularly on independence. ICAEW members carrying out such engagements must comply with the FRC Ethical Standard, and where both apply they should follow the more restrictive requirement. The IESBA Code is not UK-only, and the codes are designed to be consistent rather than contradictory.