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ACCA Applied Knowledge · Business and Technology · The role of regulatory and professional bodies in promoting ethical and professional standards in the accountancy profession

A member of a professional accountancy body is found, after an investigation by the body's disciplinary committee, to have acted dishonestly in preparing a client's tax return. Which of the following is a sanction that the professional body itself can impose?

A professional body can exclude a member from membership after a disciplinary finding of dishonesty. Its powers relate to its own members, including reprimands, fines and removal. Imprisonment is a matter for criminal courts, and the body cannot fine on behalf of tax authorities or cancel company registrations.

  1. AImprisonment for up to two years
  2. BExclusion of the member from membershipCorrect
  3. CA fine payable to the national tax authority
  4. DCancellation of the client's company registration

Explanation

Professional bodies can impose sanctions on their own members, such as reprimands, fines payable to the body, restrictions, or removal from membership. Imprisonment and criminal penalties are matters for courts. Fines to a tax authority and deregistering a company are outside the body's powers.

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