How are the IESBA Code of Ethics, the FRC Ethical Standard and the ICAEW Code of Ethics related?
Answer and explanation
Correct answer: C. The ICAEW Code is based on the IESBA Code; the FRC Standard adds audit rules
- Step 1: The IESBA issues the international Code of Ethics.
- Step 2: ICAEW's Code is aligned to it, and the FRC Ethical Standard adds requirements for auditors.
Answer
The ICAEW Code is based on the IESBA Code; the FRC Standard adds audit rules.
Why not the others: The IESBA Code is international and the FRC Standard is UK-specific. They are related, and members must follow the Code that applies to them. The Standard supplements the Code for audit work; it does not replace it for all members.
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