Question

1. For each of the following ethical situations consider the fundamental principles of professional behaviour and:

• identify the fundamental principle at threat,                                     
• identify the threat to the fundamental principle                                
• discuss how the accountant involved should resolve the situation   

1. You have been employed as a graduate accountant in a listed company and have been asked to complete a business report for the group. Your report must be completed by the tomorrow but vital statistics essential for the report will not be available for another three days. Your immediate supervisor has made it clear you will be severely reprimanded if the work is not completed on time.                                                

Fundamental principle:

Threat:

Resolution:

2. At a party, an accountant speaks to another accountant, a person she has met for the first time, and says that she is amazed at the loss of her employer. She mentions the name of the employer and the results have not been released to the public yet.

Fundamental principle:

Threat:

Resolution:

(iii) You are the CFO and have been asked to evaluate and choose a vendor to complete repair work from tenders in the company that you work. On looking through the tenders, you realise that one of them has come from your brother who you know is in serious financial troubles and could really do with the money.

Fundamental principle:

Threat:

Resolution:

  

Answer 1

i.Fundamental principle:Objectivity

Threat:Professonal or Regulatory monitoring and disciplinary procedures.

Resolution:Refer to the employing organisation internal procedures and also consider which parties ought to be involved in the ethical conflict resolution process,in what role and at what stage.For instance , the professional accountant needs to consider when it would be appropriate to refer to the external source of supply or can go for any alternative course of action. ii.Fundamental Principle:Personal Behaviour Threat:Professional and regulatory monitoring and disciplinary procedurse. Resolution:A member should consider the established internal procedures and select the course of action that will best enable him or her after weighing the consequences of each to comply with the rules. iii.Fundamental principle:Integrity Threat:Corporate Governance Regulations. Resolution:While evaluating the course of action ,it is expected to consider the applicable laws and regulations and long term and short term consequences.