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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 professional accountancy body wants to strengthen public trust in its regulation after a high-profile audit failure. Which change would most directly address the concern that it is investigating its own members?

Introducing independent oversight or lay members on disciplinary panels most directly addresses the concern, because it reduces the perception that members are judging their own peers. Higher fees, more training or a longer ethics code do not change who investigates and decides complaints.

  1. AIncreasing annual membership subscriptions to fund more staff
  2. BIntroducing an independent oversight body or lay members on its disciplinary panelsCorrect
  3. CRequiring members to complete more hours of technical training
  4. DPublishing a revised code of ethics with longer wording

Explanation

The concern is lack of independence in disciplinary matters. Independent oversight or lay members on panels directly reduces the perception that members judge their peers. Higher subscriptions, more training and a longer code may improve other aspects but do not address the independence of investigations.

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