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PETH Q & A 26 June 2017 with Teresa Clarke

Good evening everyone, and welcome to the latest ASN FREE Q & A session with Teresa Clarke on AAT Level 3 Professional Ethics. If you have any questions, please post as a comment below. Please be aware, if any questions are left unanswered, then they will be answered at a later time. And thank you all for participating…..now over to you, who has the first question

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Teresa Clarke Hi everyone!

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Ashwini Talathi Gurav Hi

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Ashwini Talathi Gurav I read threats chapter again and again but not able to solve questions I get confused about which fundamental principle has threatened in the scenarios.

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Teresa Clarke Think about what is actually happening in the situation. Put yourself in that situation and then look at the principles written down beside you (with their definitions).

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Ashwini Talathi Gurav Thanks i think this will help.

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Teresa Clarke The more you understand the definition of each principle, the easier it becomes to identify which one is threatened.

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Natasha Everard

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Lubna Mahmood Hi

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Monika Kozak Hi

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Ashwini Talathi Gurav There is much to remember, Could you please give some tips to remember everything.

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Teresa Clarke PIPCO to remember the principles. Write those down and it will help with the first letter of each.

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Ashwini Talathi Gurav thank you

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Natasha Everard

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Charlotte Hart Do you have any clever ways of remembering details relating to what constitutes money laundering?! And the associated penalties?!

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Charlotte Hart Thinking like notifying etc…

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Teresa Clarke Money laundering is the handing of money that does not belong to you. This would be from something criminal, eg drug money or keeping tax money that should have been paid to HMRC. The penalty will be 14 year and unlimited fine for money laundering.

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Charlotte Hart Teresa Clarke I’m thinking more about other ways you can be deemed to be money laundering, i.e. How can the accountant be done for it x

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Teresa Clarke We can be found guilty if we “fail to disclose” an act of money laundering, ie fail to report it.

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Charlotte Hart Teresa Clarke but also if we notify the offending party that we suspect them?!

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Teresa Clarke Oh, yes. You can advise them to correct errors, but if you are going to report them, then you must not tell them as this is tipping off.

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Natasha Everard

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Ashwini Talathi Gurav I have not read the whole book yet it’s difficult to finish the one single chapter.
any tips how I will revise the whole book before going to exam

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Teresa Clarke Write notes with all the facts on them. You can’t remember the whole book, but you will need to facts.

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Natasha Everard

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Teresa Clarke To remember the threats try: Familiarity with the SAS can be Intimidating. Two threats there and then you just need to remember SAS.

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Denise Hicks Hello! Is there a thing like PIPCO for remembering all the threats?

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Jolitux Joli Sustainability and accountants obligations to it?

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Teresa Clarke Accountants have an obligation to uphold and promote sustainability in the public interest.

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Monika Kozak Teresa Clarke how?

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Jolitux Joli yes how

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Jolitux Joli examples that could be easy to remember

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Jolitux Joli because so many fancy words….

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Teresa Clarke I see. Well we could make sure that we always print on both sides of paper, or not at all. We could try to email rather than post things. We could then promote it by recommending to our employers that we buy recycling packaging for our factory to use.

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Monika Kozak Teresa Clarke now its easy.. , thnx

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Jolitux Joli how accountants could promote the social factor of sustainability?

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Jolitux Joli economic factor?

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Teresa Clarke We could recommend a good pension or healthcare scheme for the employees. That would help the employees to stay with us and keep them happy and would save the company money but not needing to recruit new employees.

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Teresa Clarke The economic factor will usually follow with the other two. If our reputation improves around the area or with the products we source, then we make more profit. If our staff stay long term we save money on recruitment and training.

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Natasha Everard

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Teresa Clarke Just entered that above – Familiarity with the SAS can be Intimidating!

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Ashwini Talathi Gurav Do you have things like this for each chapter

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Teresa Clarke I have a few more. Let me think!

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Ashwini Talathi Gurav waw

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Ashwini Talathi Gurav

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Binty Musa Sorry ,what does SAS mean ?

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Ashwini Talathi Gurav Self review, advocacy , self interest threats

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Natasha Everard

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Teresa Clarke The four types of bribery – MUFC – me, you, foreign, company. So that is me bribing someone, you bribing me, bribing a foreign official and a company not putting steps in place to prevent bribery.

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Teresa Clarke PLERPS for the risks!

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Charlotte Hart ….?!

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Teresa Clarke Risks within a factory. People, Litigation, Environmental, Reputational, Process and System.

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Charlotte Hart Teresa Clarke ooo maybe part of PETH rather than AVSY (I think!)

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Teresa Clarke It could still come up in AVSY, so best to have a brief look at this – just in case.

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Charlotte Hart Teresa Clarke will do

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Natasha Everard

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Teresa Clarke Remember it is all about what you should do, not necessarily what you would do.

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Lubna Mahmood i liked PETH and understood it but when i saw the questions in the exam they were in very complicated asked .A simple thing asked was very much complicated Any tips on that please

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Teresa Clarke If you have the facts, that is great. Now think about answering your questions with POINT, EXAMPLE, EXPLAIN. Make your point, usually a yes or no or a simple answer, then apply this to the questions, giving the example given in the question, then explain what you mean, sometimes referring to the relevant principle, threat etc. Use a 3 step approach to answering the questions.

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Lubna Mahmood i like this approach

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Lubna Mahmood thanks

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Natasha Everard

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Teresa Clarke CSR – don’t forget that one. Corporate Social Responsibility.

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Teresa Clarke All ok with this?

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Natasha Everard

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Jolitux Joli how could we remember responsibilities of finance professionals to uphold principle;es of sustainability

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Teresa Clarke To uphold and promote sustainability in the public interest.

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Natasha Everard

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Monika Kozak the threat of potencial employment- I undersend why it affects objectivity but also professional behaviour, why?

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Teresa Clarke Are you saying that you are offered employment if you do a certain thing which is unethical?

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Monika Kozak during audit I was offer a job..

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Teresa Clarke I see. So you would no necessary be objective with the job you are doing, because you want to impress the new, potential employer. Professional behaviour may also be appropriate, but objectivity first. If you fully explained professional behaviour, then there may be some marks available. Remember, a person marks this.

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Monika Kozak osborne books gives as an aswer this two, and I can’t work out why prof. beh.

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Denise Hicks Monika Kozak wouldn’t it be because you should report it to your manager so it can be decided if you were to continue to work with the person who offered you the job?

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Teresa Clarke Spot on Denise Hicks – it is how you deal with the situation.

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Monika Kozak I was thinking about it as safeguard to objectivity(informing menager and he can remove me from work or check my work )

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Teresa Clarke But he wouldn’t know you had been offered a job unless you told him.

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Monika Kozak but I have to tell him to safegurd obcjectivity…

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Teresa Clarke Yes

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Monika Kozak So if I don’t tell him I will compromise two, and if I tell him only my objectivity stays affected?

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Monika Kozak will think about it 2morrow..

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Natasha Everard

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Ashwini Talathi Gurav Is it ok to use simple language in the exam, because I can’t remember all the words used from the book.

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Teresa Clarke Perfectly acceptable, but you must use the correct words for the principles and threats.

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Binty Musa Thank you for asking this question, l was wondering too.

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Natasha Everard

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Jolitux Joli reserved areas…is it external audit or audit in general.

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Monika Kozak external

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Teresa Clarke External audit, financial advice and involvency.

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Lubna Mahmood i wrote in my exam plain and simple words to describe and in my feedback i was told i didn’t use the proper format

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Teresa Clarke The assessor needs to establish understanding. Some words are needs, such as the principles, the threats etc.

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Natasha Everard

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Monika Kozak for legal regulaion.. do we need to know year of the act? eg Equality Act 2010 or just Equality Act? ( i mix dates ;( )

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Teresa Clarke No you don’t need the year.

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Natasha Everard

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Teresa Clarke Remember the difference between a Code of Conduct set up by a company and the law. A Code of Conduct is a list of guidelines that your company would like you to abide by, but you cannot be prosecuted in court for this.

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Teresa Clarke Remember that the word “statutory” being legal, so something which is statutory is backed up by a law or regulation and could lead to prison or a fine.

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Teresa Clarke Remember the difference between civil and criminal court. All happy with this, or need any more information?

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Jolitux Joli more. what are cases named in each.

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Teresa Clarke A civil case is between two people and is decided by a ‘balance of probabilities’. This is the Judge Judy or Judge Rinder type case. The penalty is simply compensation for the party deemed to be in the right. Things like cutting down the neighbours …See more

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Natasha Everard

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Jolitux Joli what is the difference between litigation and legal risk

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Teresa Clarke The same thing really.

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Jolitux Joli so if the task asks you to recognise the risk both answers would be accepted?

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Jolitux Joli in bop book they are separated

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Teresa Clarke Litigation is the risk of being taken to court, so in theory I suppose it could be a civil case.

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Natasha Everard

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Teresa Clarke If the question says ‘state’ one word is acceptable. If it says ‘describe’ then one or two sentences are acceptable. If it says ‘explain’ you need more details and apply it to the question.

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Teresa Clarke You are not penalised for writing too much.

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Monika Kozak If it says state sponsoring body, can I write CIPFA or it has to be in full?

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Teresa Clarke CIPFA is fine. Abbreviations are acceptable.

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Natasha Everard

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Teresa Clarke Always ensure that you answer the question – so many times the question will ask for a safeguard, and someone will write a lovely piece all about the principle. Keep it relevant.

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Teresa Clarke Brain-dump before you start the exam. In other words, when they say you can start, put everything you remember, all those facts etc, onto paper. That way you have notes to refer to as you go through the exam.

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Charlotte Hart Any ideas on remembering sponsoring bodies vs the other type they ask for?!

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Teresa Clarke You will never be asked to remember them all, usually just two. So pick two that are both sponsoring bodies of AAT and members of the CCAB.

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Charlotte Hart Teresa Clarke thanks!

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Monika Kozak that’s how i remeber them

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Teresa Clarke And if thy are for which one is not a member, then remember no A in AAT and no C in CCAB, so no ACCA in AAT and no CIMA in CCAB.

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Natasha Everard

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Charlotte Hart Is there reference material on ethics in the AVSY exam?!

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Teresa Clarke I would need to check that, as I think there is some.

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Denise Hicks I deleted my comment as I realised I hadn’t read Charlotte’s question properly. If you try to do one of practice papers though it will tell you if there’s reference material

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Charlotte Hart Denise Hicks ah great point

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Natasha Everard

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Jolitux Joli public interest disclosure act, do we need to know details about this?

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Teresa Clarke You just need to know when you are protected by this. You need to belief what you are ‘whistle blowing’ on is true and you are acting in good faith.

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Teresa Clarke Remembering the definition of sustainability !

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Monika Kozak safaguards created by profession, legislation and regulation- there is a long list of them, do we need to remeber them all?

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Teresa Clarke No. You will need to think about an appropriate safeguard for a situation given to you. For instance they might say, what safeguard could you put in place to prevent bribery. The company could put in place a ‘no gift over £5’ policy to help the employees to prevent bribery.

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Betrum Kasanga What are the auditor responsibilities regards compliance with the laws and regulations by an assurance engagement client

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Reply 10 hrs Edited

Teresa Clarke Auditor responsibilities would not normally be covered???

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Betrum Kasanga Okay,it’s all about five fundamental principles of profession ethics and their threats.Oooh i see

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Natasha Everard

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Teresa Clarke For those of you doing AVSY, you will need to write one or two emails. You WILL be marked on spelling and grammar, so works hard on this one. Easy marks to gain.

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Betrum Kasanga And what audit procedures to carry out in an audit of non compliance to laws and regulations

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Teresa Clarke Not sure of the question because external audit is a regulated area and not covered in this. Unless I am misinterpreting your question.

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Betrum Kasanga Ok,but are IESBA’s professional ethics covered which sets out principles of profession ethics and gives a conceptual framework for applying them

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Reply 13 hrs Edited

Natasha Everard

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Monika Kozak what will you suggest as safeguard if employee steals from till?

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Teresa Clarke A camera above the till?

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Natasha Everard

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Teresa Clarke When writing an email answer, remember to make the email relevant to the person receiving it, address it appropriately and make sure you sign off as the person on the scenario, not your real name.

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Teresa Clarke Five minutes and I need a coffee………………..any more questions?

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Teresa Clarke I hope I have managed to help you with the questions. If you need more help, always post to the group. If I don’t get to reply, there are plenty of other people on here who can help.

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Hannah Osborne I’m not doing Level 3 yet so I’ve no questions but I’ve found just observing helpful, thank you

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Hannah Osborne Enjoy your coffee!

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Charlotte Hart Teresa I am so grateful. If you have any other acronyms to help remember things that would be amazing as they have seemed perfect for me

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Teresa Clarke Thanks Hannah Osborne! I will be around if you need help when you get to Level 3 !

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Natasha Everard

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Denise Hicks I don’t have any, just need to put one of the kids to bed. Thank you so much Teresa. I’ve not covered all the chapters yet but lots of this has helped so far and I’m sure the rest will help with the rest of the chapters! x

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Monika Kozak I just started this lovely

unit .. so I’m sure I will ask as I progress(hopefully there will be progress)

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Monika Kozak Thank you Teresa Clarke , you are a star . Enjoy your coffee

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Teresa Clarke Thanks all. Any questions posted after 8.30 will be answered as soon as I, or indeed someone else, can get to it.

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Ashwini Talathi Gurav Thank you

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Jolitux Joli Thank you.

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Jolitux Joli do we need to know the areas where accountant need to keep knowledge up to date

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Reply 13 hrs Edited

Monika Kozak I will say yes- Profesional competance and due care

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Jolitux Joli areas like reporting standards, tax and company legislation, ethical codes?

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Jolitux Joli criminal law

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Natasha Everard

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Lidiia Gould thank you

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Yulia Taylor Thank you very much Teresa

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Lesley Bishop I got called out this evening and missed this … but some great questions and answers. Look forward to reading through them all tomorrow
Thank you very much Teresa

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Lubna Mahmood Thank you very much for your time Teresa and a lot of help from your answers.