Code Of Ethics For Professional Accountants †MyAssignmenthelp.com

Question: Discuss about the Code Of Ethics For Professional Accountants. Answer: Determination of two key facts of the case In the particular scenario, there is a need to make necessary recommendation to the CEO about the tender that must be accepted by the company. You have significant personal interest in this tendering firm (Collier, 2015). Determination of two ethical issues of the case The basic ethical issue that arises in this scenario relates to the conflict of the interest. The second ethical issue in the case is the high involvement of personal interest of the manager. Determination of the three ethical principles which might be at risk in the given scenario The ethical principles that might be at risk in the given scenario include honesty and integrity on part of the manager, professional values and practices of the company, and fair managerial policies relating to the selection of tender (Birt et al., 2008). Identified alternative courses of action: Consequences Declare an interest and step outside of the decision-making process for this particular tender This is the most ethical and fair option that must be selected by the manager. By choosing this alternative, the managers integrity and honesty would remain intact. Declare an interest and remain part of the decision-making process and complete your recommendation for your company The declaration of the managers interest would be a good move. But the objectivity of the manager relating to the decision-making power of the manager cannot be ascertained (Demski, 2013). A probable consequence could be his removal from decision-making panel due to resistance from other shareholders. Dont declare an interest and continue to do your job by making a recommendation This unethical method could damage the common interest of the undertaking and the manager (Guy, 1990). Determination of three key facts of the case The small business owner has to make a financial payment to an overseas government official. The market entry of the business depends on the officials assistance in the new market. This monetary transaction seems new for the small business owner but it could be a usual norm in the foreign nation (May, 1990). Determination of one ethical issue in the case The ethical issue that arises in the case relates to bribery. Since the government official expects to receive financial gain from the businessman in return for his assistance, it is a key ethical concern. Determination of two ethical principles of the case The two ethical principles of the case are honesty and integrity while performing professional activities. Identified alternative courses of action: Consequences Make the payment If the payment is made by the small business owner, most probably his business would flourish in the overseas market. But in future, there is a chance that such future payments would be expected from him (Guy, 1990). Dont make the payment If the monetary payment is not made by the small business owner, he would face stiff challenges to establish his business in the foreign land. But on the ethical front, his integrity would be intact. Code of ethics for professional accountants The particular scenario states that the auditor of Baba Ltd that seals with golf equipment is offered a new set of golf clubs in appreciation of his work to date. This gifting of golf clubs does not seem appropriate in this professional front since it could compromise the integrity, and independence of the audit work. In case the auditor accepts the gifts, the firm being audited would try to dominate his function and objectivity. This scenario that has been presented highlights the issues relating to the responsibility that a service provider has towards the general public including the clients. The function of lending institutions is critical and loans of all the customers must be approved based on their credit rating (Demski, 2013). In the particular scenario, a friend of the accountant approaches for a loan since he is unable to obtain a loan elsewhere and the accountant approves the same for the friend without performing normal checking procedure. This shows the breach of professional conduct due to personal contact. Such bias professional attitude must be avoided and a report must be shared with the management for their approval of the loan (May, 1990). This case states that an accountant is part of the local council works committee which is in the process of considering various tenders for a park upgrade. His biased favouritism attitude towards the tender submitted by his best friend without considering other options shows unprofessional approach towards work. This act could reduce the probability of other competent tenders to be ignored. References Birt, J., Chalmers, K., Beal, D., Brooks, A., Byrne, S. and Oliver, J., 2008. Accounting: Business reporting for decision making. John Wiley Sons Australia, Ltd.. Collier, P.M., 2015. Accounting for managers: Interpreting accounting information for decision making. John Wiley Sons. Demski, J., 2013. Managerial uses of accounting information. Springer Science Business Media. Guy, M.E., 1990. Ethical decision making in everyday work situations. Greenwood Publishing Group. May, W.W. ed., 1990. Ethics in theaccounting curriculum: Cases and readings.