professional ethics. unit summary the purpose of the unit this knowledge unit recognises the...
DESCRIPTION
Discuss organisational ethical valuesethical values Explain and distinguish between the five principle ethical principles Describe the four-step problem solving approach to ethical issues Describe threats and distinguish between different types Describe safeguards, and categorise them as regulatory or work- based Distinguish between, and evaluate, rules-based and principles- based approaches to ethical guidance Identify and describe the main accountancy regulatory bodies in the UK. ObjectivesTRANSCRIPT
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Professional Ethics
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Unit SummaryThe purpose of the unit This knowledge unit recognises the importance of ethics and sustainability in modern business organisations, and that the student must act and work in an ethical manner. Its purpose is to support students in:
• working within the ethical code applicable to accounting and finance professionals • ensuring the public has a good level of confidence in accounting practices or functions • protecting their own and their organisation’s professional reputation and integrity • upholding principles of sustainability.
Timetable
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• Discuss organisational ethical values• Explain and distinguish between the five principle ethical
principles• Describe the four-step problem solving approach to ethical
issues• Describe threats and distinguish between different types• Describe safeguards, and categorise them as regulatory or
work-based• Distinguish between, and evaluate, rules-based and principles-
based approaches to ethical guidance• Identify and describe the main accountancy regulatory bodies in
the UK.
Objectives
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Computer Based Project
2.5 hours PLUS 15 minutes reading time
Mannually marked
Assessment
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Principles of Professional Ethics
A Definition . . . .
The professional ethics of an organisation are the moral principles or standards that govern the conduct
of the members of that organisation
This means . . . . . . . . . .
Discuss (5 minutes)
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Example . . . . .
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Assumptions
What assumptions do we make about our doctor and or the medical profession as a whole?
Governed by the specific standards of the medical profession in the country
in which he/she is practicing
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Why should an accounting technician try to behave ethically?
Discuss
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What would you do?
ACTIVITY 1You pay for something in a shop with a £5 note, and the assistant gives you change for £10. What do you do next?
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Code of Ethics for Professional Accountants
Rules Based System
Concept Based System
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IntegrityRequires all members of an organisation to be straightforward and honest in all professional and business relationships.
How could this be met?• Not overstating expense claims• Ensuring chargeable time is allocated correctly• Not using company property for personal use
Professional Ethics
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Activity 2
At the end of the financial year, Buxton Ltd’s Managing Director told the Finance Director that he wants to maximise the company’s profits by not setting up a £50,000 allowance for doubtful debts against an outstanding debt from a customer who has just gone into administration.
What action do you think the Finance Director should take?
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ObjectivityRequires that all members of an organisation do not allow bias, conflict of interest or undue influence of others to override professional or business judgements.
How could this be met?• Being impartial• Not being influenced by personal feelings or views• Not accepting gifts in order to provide preferential treatment• Ensuring personal relationships are disclosed
Professional Ethics
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Activity
Abdul Osman works for a small company as the senior accountant and is currently working on the year-end accounts for one of their clients; Dempsey & Co. Darren Dempsey has asked Abdul for his advice on whether the company should make a donation to the political party that he supports and how to treat it in the financial statements. Abdul has strong personal views against the party in question.How should Abdul advise the client?
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Professional competence and due careRequires a continuing duty to maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service based on current developments in practice, legislation and techniques.
How could this be met?• Providing CPD opportunities • Ensuring adequate time, information and resources are available• Ensuring staff have relevant qualifications/experience
Professional Ethics
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Activity
Agniezska runs a small bookkeeping practice and has been asked by one of her clients to provide specific advice on the VAT implications of a new product imported from overseas. Although she came across VAT during her accounting studies, she does not feel confident with this particular aspect of VAT.What options are available to Agniezska in this situation?
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Confidentiality Requires the respect of confidentiality of information acquired as a result of professional and business relationships and not disclose any such information to third parties without proper and specific authority unless there is a legal or professional right or duty to disclose.
How could this be met?• Maintaining confidentiality in a social environment (including
social networking) • Ensuring adequate security/passwords are in place• Providing thorough induction
Professional Ethics
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Activity
ACTIVITY 6Carlo works for an accounting practice that has a large number of clients within the local area. Carlo is having a drink with one of his close friends who tells him that he has been offered a job with a local media company. He is aware that they are one of Carlo’s firm’s clients and after a few drinks he asks about their financial position and whether going to work for them would be a good move.How should Carlo deal with this question?
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Do you think there are any circumstances where confidentiality can be broken?
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Do you think there are any circumstances where confidentiality can be broken?
When is it acceptable to disclose confidential information?
Authorised by client
Disclosure required by law
Information used in court of law
When the law has been broken
Professional duty to disclose
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Do you think there are any circumstances where confidentiality can be broken?
When is it acceptable to disclose confidential information?
Authorised by client
Disclosure required by law
Information used in court of law
When the law has been broken
Professional duty to disclose
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Do you think there are any circumstances where confidentiality can be broken?
When is it acceptable to disclose confidential information?
Authorised by client
Disclosure required by law
Information used in court of law
When the law has been broken
Professional duty to disclose
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Do you think there are any circumstances where confidentiality can be broken?
When is it acceptable to disclose confidential information?
Authorised by client
Disclosure required by law
Information used in court of law
When the law has been broken
Professional duty to disclose
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Do you think there are any circumstances where confidentiality can be broken?
When is it acceptable to disclose confidential information?
Authorised by client
Disclosure required by law
Information used in court of law
When the law has been broken
Professional duty to disclose
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Do you think there are any circumstances where confidentiality can be broken?
When is it acceptable to disclose confidential information?
Authorised by client
Disclosure required by law
Information used in court of law
When the law has been broken
Professional duty to disclose
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Professional behaviourRequires compliance with relevant laws and regulations and avoidance of any action that brings the profession into disrepute.
How could this be met?• Not exaggerating abilities regarding services offered,
qualifications possessed, or experience gained• Not making disparaging references or unsubstantiated
comparisons about colleagues• Ensuring there isn’t unfair delegation of work
Professional Ethics
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Examples of Professional Behaviour not being maintained?
Activity
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Working in pairs agree a definition for the principle you have been given
Write this on the flip chart page so it can be read from the wall!!
Actvity - Definitions
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Review Questions worksheet
Activity
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• Reporting inflated income• Falsifying documents• Allowing or taking questionable deductions• Misuse of company property, such as a phone or vehicle• Unfair delegation of work, insisting on excessive overtime• False disclosure of qualifications to gain employment/promotion • Disclosing confidential company information • Taking paid sick leave when not unwell• Contract bribery • Arranging discounts for friends or family• Sending a new apprentice to meet a client on their own
Possible ethical issues
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• https://www.youtube.com/watch?v=vZIjX-7SczA
• https://www.youtube.com/watch?v=IS4OVlg34SY
• http://www.aatethics.org.uk/?q=resources/ethical-dilemmas
• http://www.aatethics.org.uk
Professional Ethics