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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

Which of the following is a function of a professional accountancy body such as ACCA in regulating its members?

A professional accountancy body sets entry examinations, requires continuing professional development and issues and enforces a code of ethics for members. Tax rates and criminal law are matters for government, and dividend policy belongs to company directors and shareholders.

  1. ASetting the corporate tax rate that members' clients must pay
  2. BPassing criminal laws on fraud that apply to all citizens
  3. CSetting entry examinations, continuing professional development requirements and a code of ethics for membersCorrect
  4. DDeciding the dividends that listed companies must pay

Explanation

Professional bodies control entry through exams and experience requirements, require ongoing CPD, and issue and enforce ethical codes. Tax rates and criminal law are set by government, and dividends are decided by company directors and shareholders.

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