What is a conceptual framework approach to professional conduct?

The conceptual framework specifies an approach for a professional accountant to: Identify threats to compliance with the fundamental principles; Evaluate the threats identified; and. Address the threats by eliminating or reducing them to an acceptable level.

When using the conceptual framework of a threat is significant you should?

When using the conceptual framework, if a threat is significant you should: Not perform the attest engagement. Discuss the threat with those charged with governance. Apply safeguards that eliminate or reduce the threat to an acceptable level.

What are the 5 fundamental principles Code of professional conduct?

The fundamental principles within the Code – integrity, objectivity, professional competence and due care, confidentiality and professional behavior – establish the standard of behavior expected of a professional accountant (PA) and it reflects the profession’s recognition of its public interest responsibility.

What is conceptual framework in auditing?

A sound conceptual framework serves as a foundation for standards setting and enhances standards consistency over time. A conceptual framework also provides guidance in solving emerging practical problems. Auditor independence is one of the most important issues in accounting practice today.

What is the reasons why the understanding of the conceptual framework is important in your journey of becoming a certified public accountant?

The main reasons for developing an agreed conceptual framework are that it provides a framework for setting accounting standards, a basis for resolving accounting disputes, fundamental principles which then do not have to be repeated in accounting standards.

What does a theoretical framework mean?

The theoretical framework is the structure that can hold or support a theory of a research study. The theoretical framework introduces and describes the theory that explains why the research problem under study exists.

When should members use the AICPA conceptual framework for independence?

Members should use the AICPA conceptual framework for independence to: 1) Come to different conclusions than the Interpretations of the Code of Professional Conduct. 2) Evaluate independence matters not addressed in the Code of Professional Conduct.

What are the principles of professional conduct?

Maintain confidentiality in professional relationships. Fulfill commitments in a reliable, responsive and efficient manner. Be fully accountable for actions, use of resources and financial dealings.

How do you explain code of conduct?

A code of conduct is a set of rules around behaviour for the employees to follow within an organisation. The code acts as a standard that staff need to meet so that they can know what is expected of them to produce a generally more efficient business.

What should a conceptual framework contain?

A conceptual framework includes one or more formal theories (in part or whole) as well as other concepts and empirical findings from the literature. It is used to show relationships among these ideas and how they relate to the research study.

What is the main purpose of the conceptual framework?

The primary purpose of the Conceptual Framework was to assist the IASB in the development of future IFRSs and in its review of existing IFRSs. The Conceptual Framework may also assist preparers of financial statements in developing accounting policies for transactions or events not covered by existing standards.

What is the purpose of conceptual framework in research?

A conceptual framework illustrates what you expect to find through your research. It defines the relevant variables for your study and maps out how they might relate to each other. You should construct a conceptual framework before you begin collecting data. It is often represented in a visual format.

What is the conceptual framework in Part 1 Section 120?

The conceptual framework set out in Part 1, Section 120, applies to all professional accountants (PAs) and is not repeated in subsequent Parts or sections but is expected to be applied by all PAs in the conduct of professional activities. The provisions in Section 120 are not intended to be a “step-by-step checklist.” Rather]

What are the prerequisites for the proper application of conceptual framework?

An understanding of known facts and circumstances is a prerequisite to the proper application of the conceptual framework. Determining the actions necessary to obtain this understanding and coming to a conclusion about whether the fundamental principles have been complied with also require the exercise of professional judgment.

Why do professional accountants need to comply with the fundamental principles?

Professional accountants and firms are required to comply with these standards in order to be independent when conducting such engagements. The conceptual framework to identify, evaluate and address threats to compliance with the fundamental principles applies in the same way to compliance with independence requirements.

When did the AICPA Code of Professional Conduct come into effect?

0.200.020 Application of the AICPA Code .01 The Code of Professional Conduct (the code) was originally adopted on January 12, 1988, and was periodically revised through June 1, 2014. On June 1, 2014, the AICPA issued a codification of the code’s principles, rules, interpretations and rulings (revised code).