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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 main purpose of a professional body such as ACCA issuing a code of ethics to its members?

The main purpose of a professional body's code of ethics is to set standards of behaviour that protect the public interest and maintain confidence in the profession. It does not guarantee client profits, substitute for criminal law, or set the fees members charge.

  1. ATo guarantee that members will always achieve higher profits for clients
  2. BTo set standards of behaviour that protect the public interest and maintain confidence in the professionCorrect
  3. CTo replace the criminal law in relation to financial crime
  4. DTo fix the fees that members may charge clients

Explanation

A professional code of ethics sets behavioural standards so that the public can trust members. This supports the public interest and the reputation of the profession. It does not guarantee profits, replace the law or fix fees.

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