1. AAT Level 3 Diploma Professional Ethics

2. Aims Outline the relevant legal, regulatory and ethical requirements affecting the accounting and finance sector

3. Learning Outcomes Explain the importance of operating within codes of practice, regulation and legislation

4. Regulation of the accounting profession The International Federation of Accountants (IFAC) Global organisation representing the accounting profession International Ethics Standards Board for Accountants (IESBA)....sets basic ethical standards. Professional Accounting Bodies are also regulated by the Financial Reporting Council (FRC)

5. FRC Board has three committees: Codes and Standards Committee Audit and Assurance Council Accounting Council Actuarial Council Conduct Committee Monitoring Committee Financial Reporting review panel Case Management Committee Executive Committee Regulation of the Accounting Body

6. Other forms of Legal Regulation What other legal regulations would impact on the accounting function?

7. Other forms of Legal Regulation Examples of other regulations are: Health and Safety at Work Act Environmental Protection Act 1990 Employment Protection Act 1975 Equality Act 2010 Data Protection Act These regulations are designed to cover all types of organisations.

8. Professional Accounting Bodies Main Accounting Bodies in the UK AATAssociation of Accounting Technicians ICAEW Institute of Chartered Accountants in England and Wales ICAS Institute of Chartered Accountants of Scotland ACCA Association of Chartered Certified Accountants CIMAChartered Institute of Management Accountants CIPFAThe Chartered Institute of Public Finance and Accountancy

9. Statutory Regulated Accounting Functions Accountants provide accounting services ie bookkeeping, taxation and consulting services. May provide other services which are statutorily regulated, they are sometimes known as ‘reserved areas’ The three main areas are:- External Audit Investment business Insolvency work Members of the AAT are not permitted to carry out these areas. They are permitted to be part of a team providing these services

10. Forum for accounting profession in UK & Ireland Formed in 1974 CCAB members: ICAEW ICAS ICAI ACCA CIPFA Consultative Committee of Accountancy Bodies

11. The AAT is not a member of the CCAB. However, four of the accounting bodies that are members are sponsoring bodies of the AAT. ICAEW ICAS CIPFA CIMA is the 4 th sponsoring body of the AAT but is not a member of the CCAB Sponsoring bodies of at AAT

12. Financial regulator for the UK Ensures standards and ethics in financial markets Powers given by Financial Services Act (2012) Accountable to Parliament (Treasury) Funded by the firms they regulate Regulators - Financial Services Authority (FSA)

13. Watchdogs Ombudsmen Other methods of regulating industries