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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 the key difference between a professional body's code of ethics and a law passed by the government?

A professional body's code of ethics applies only to its members and is enforced through its own disciplinary process, while a law applies to everyone in the jurisdiction and is enforced by the courts. The code is not binding on non-members.

  1. AThe code applies only to members of the body and is enforced through its disciplinary procedures, whereas the law applies to everyone within the jurisdictionCorrect
  2. BThe code is always stricter than the law, whereas the law is always based on principles
  3. CThe code is compulsory for all citizens, whereas the law applies only to accountants

Explanation

A code binds only members and is enforced through the body's disciplinary procedures; law binds all persons in the jurisdiction and is enforced by the courts. The code is not always stricter than law, and it does not bind non-members.

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