1. Ethics and Ethical Conflict Flashcards
How should an accountant behave?
Be trustworthy and consider public interest
The recent trend from accountants is from _____ accounting to _____ accounting.
Variance to lean
The CIMA code of ethics is based on…
The International Ethics Standards Board for Accountants code of ethics
The IFAC is:
The International Federation of Accountants, which represents all the major accountancy bodies
The characteristics which an accountant should display are, according to the CIMA code of ethics…
(PCPC) Professionalism Credibility Provide high quality services Confidence
The Fundamental Principles of the CIMA code of ethics are…
(CIPOP) Confidentiality Integrity Professional behaviour Objectivity Professional competence and due care
The two circumstances in which you have a responsibility to disclose client information without permission are:
Obligatory responsibility (money-laundering, drug-trafficking and terrorist offences) Voluntary disclosure (fraud)
Personal qualities of an accountant
(CTRRR) Courtesy Timeliness Respect Responsibility Reliability
Professional qualities of an accountant
(SASI) Scepticism Accountability Social responsibility Independence
The two approaches to incorporating ethical behaviour into organisations are:
Rules based / compliance based and principles based / conceptual framework
Which approach to incorporating ethical behaviour into an organisation does CIMA advocate?
A conceptual framework
What are the organisational values that promote ethical behaviour?
(HOARTEL) Honestly Openness Accountability Respect Trust Empowerment Leadership
The Chartered Global Management Accountant designation is a joint venture between:
CIMA and the American Institute of CPAs
The six stages of the continuous development cycle are…
(DADARE) Define Assess Design Act Reflect Evaluate
What is the FRC?
The Financial Reporting Council - the UK’s professional oversight board for accounting, audit and actuarial professions
What does the FRC’s Conduct Committee regulate?
Activities of accounting bodies including registration and monitoring of members, training and education, conduct and discipline
What are the 7 principles of public life?
(LISAHOO) Leadership Integrity Selflessness Accountability Honesty Opennness Objectivity
What are the 8 ethical stances?
Consequentialism Utilitarianism Egoism Ethical relativism Ethical absolutism Pluralism Virtue Ethics Deontological Approach
What is the ethical stance of consequentialism?
Making a choice based on which results in the correct consequences
What is the ethical stance of utalitarianism?
Measuring the quality of outcome in terms of the greatest happiness of the majority
What is the ethical stance of egoism?
What is best for me
What is the ethical stance of ethical relativism?
There are relative rights and wrongs, some things are less important than others
What is the ethical stance of ethical absolutism?
There are fixed rights and wrongs
What is the ethical stance of pluralism?
Several values may be equally correct and fundamental yet in conflict with each other
What is the ethical stance of virtue ethics?
Justice and generosity enable us to act best
What is the deontological approach?
Humans are rational and have a duty to respect other rational beings.
What is an ethical dilemma?
A situation where two conflicting obligations are faced
What is a conflict of interest?
A situation in which two or more interests exist within one person and are incompatible.
What are the 5 threats to compliance with the fundamental principles?
(SSAFI) Self-interest threat Self-review threat Advocacy threat Familiarity threat Intimidation threat
What are the 6 steps in CIMA’s ethics checklist?
- Check all facts are documented
- Consider if it is ethical and legal
- Identify principles in danger and who is affected
- Consider internal and then external escalation
- Seek professional or legal advise
- Refuse to remain associated
