Please enable JavaScript.
Coggle requires JavaScript to display documents.
Professional and ethical duty of an accountant - Coggle Diagram
Professional and ethical duty of an accountant
Role of ethical theory
concerned with right and wrong and how conduct should be judged to be good or bad
relevant to all forms of human activity.
whole purpose is material gain, the making of profit
Factors influence decision making
Individual
Situational
Individual influences
Age and gender
The cultural context of ethics and corporate social responsibility
Natural and cultural beliefs
significant effect on ethical beliefs, shaping what individuals regard as acceptable business issues.
Education and employment
appear to be some differences in ethical decision-making between those with different educational and professional experiences.
psychological factors
concerned with the ways in which people think and decide
personal integrity
adhering to moral principles or values
Professional and ethical behaviour
Its important for investors to make business decision
Professional ethics is applicable to accountants in practice and in business.
Accountants need to ensure that they do not prepare financial information in a way of misleading
ACCA Code
Integrity
Objectivity
Professional competence and due care
Confidentiality
Professional behaviour
Compliance with accounting standards
important if the financial statements are to fairly represent the activities of the entity
If accounting standards are not complied with, then it may be that the financial statements are misleading
Consequences of unethical behaviour
Accountants are expected to be competent, objective and reliable
Other penalties include prison sentences, fines
Environmental and social reporting
Environment
Energy
Fair business practices
Human resource
Community
Products
Advantages
Entities have moved towards meeting stakeholder demands for additional reporting
To be good 'corporate citizen'
Enhance company reputation
Disadvantages
The production of a high quality report is not easy and need long time
incur substantial costs in producing a good report