What is the difference between a rules-based and a principles-based ethical code?
Answer and explanation
Correct answer: C. A rules-based code sets detailed prescriptive requirements
- Step 1: The ICAEW Code of Ethics is principles-based.
- Step 2: Rules-based codes specify what to do; principles-based codes require judgement in applying the principles.
Answer
A rules-based code sets detailed prescriptive requirements.
Why not the others: This reverses the two descriptions. Neither type is limited to a single profession area. They differ in approach, not just length.
Practise more Ethics and public trust.
Free questions with an explanation for every one, and full timed ICAEW ACA Certificate Level mock tests.
More Ethics and public trust questions
- Why is public trust in the accountancy profession important?
- What is professional scepticism?
- How are the IESBA Code of Ethics, the FRC Ethical Standard and the ICAEW Code of Ethics related?
- Which is a likely consequence of unethical behaviour by a professional accountant?
- An auditor forms an early view that a client's inventory is fairly stated and then gives more weight to evidence that supports that view tha…