Task21-2ethic.pdfVIP

ACCA Task 21-2 Ethical considerations Instructor: Alice Contents A code of ethics for accountants Threats to independence Resolution of ethical conflicts Why accountants should behave ethically: ? Laws and regulation ? Upholding of professional standards and qualities (personal/professional) ? Protection of the public interest These principles should be enshrined in a ‘Code of Ethics’ or ‘Code of Conduct’ Accountants and ethics IFAC: International body with own code of ethics. ACCA’s is aligned. ? Integrity ? Objectivity ? Professional competence and due care ? Confidentiality ? Professional behaviour Accountants and ethics To meet these principles, students and members of ACCA need to develop a mix of personal and professional qualities. Personal qualities include: Reliability - all work must meet professional standards Responsibility - taking ownership for your work Timeliness - delays can be costly and disruptive Courtesy - to colleagues and clients Respect - to develop constructive relationships Accountants and ethics Professional qualities include： Independence - not only being independent, but appearing to be independent Scepticism - questioning information and data Accountability -for judgements and decisions Social responsibility-to your employer and the public Accountants and ethics You have been asked to work on a major investment decision that your company will be making, and discover that your brother-in-law is the managing director of a firm that may benefit from the outcome of the decision. You have no intention of allowing this to influence the advice you give your firm, and you know that your brother-in-law will not try to influence you in any way. What professional quality would make you consider handing this task to a colleague, or otherwise raising questions with your superiors? A. Scepticism B. Accountability C. Independence of mind D. Independence in appearance Example question D Threats to independence: ? Self-interest ? Self-rev