1.2 The role of ethics in the role of FF

Question 1

The roles the FF performs should be done in an:

Answer 1

• Ethical way, with integrity and professionalism
• The professional accountant has a special role in promoting ethical behaviour throughout the bus.

Question 2

Ethics is the system of:

Answer 2

• moral principles that examines the concept of right and wrong.

Question 3

Bus ethics is the:

Answer 3

• application of ethical values to bus. behaviour.

Question 4

An ethical dilemma involves:

Answer 4

• a situation where a decision maker has to decide what is the right or wrong thing to do.

Question 5

The Code of Ethics for Professional Accountants published by The International Federation of Accountants (IFAC) helps:

Answer 5

• Management accountants identify areas where ethical pressures may exist and provides a recommended course of action for resolution.

Question 6

IFAC’s five fundamental principles:

Answer 6

• Integrity
• Objectivity
• Professional competence and due care
• Confidentiality
• Professional behaviour

Question 7

Integrity means:

Answer 7

• being straightforward, honest and truthful in all prof and bus relationships.

Question 8

Objectivity means:

Answer 8

• not allowing bias, conflict of interest or influence of other people to override your professional judgement.

Question 9

Professional competence and due care is an:

Answer 9

• ongoing commitment to maintain your level of professional knowledge and skill so that your employer receives a competent prof. service.
• work should be completed carefully, thoroughly and diligently, in accordance with relevant technical and prof. standards.

Question 10

Confidentiality means:

Answer 10

• respecting confidential nature of info you acquire through prof. relationships
• you should not disclose such info unless given specific permission or a legal or prof. duty to do so
• you should never use confidential info for yours or another persons advantage

Question 11

Professional behaviour:

Answer 11

• requires you to comply with relevant laws and regulations
• and avoid any action that could negatively affect the reputation of profession

Question 12

Why are bus. ethics important:

Answer 12

• Bus are part of society and society expects individuals to behave properly and bus to operate to certain standards.
• the org as a whole and all individuals within are expected to act in an ethical way
• ethics has a large influence on an org sustained value creation

Question 13

Acceptable bus ethics at a minimum comprise:

Answer 13

• paying staff fair wages and pensions
• provide good working conditions for staff
• pay suppliers according to agreed terms
• source supplies carefully
• use sustainable / renewable sources
• be open and honest with customers

Question 14

Apart from moral duty to be ethical, the main purpose of bus is to maximise shareholders wealth and the chances of this is increased by behaving in an ethical way because it is likely to be favoured by:

Answer 14

• customers - results in higher sales volume / prices
• employees - results in attraction and retention of best employees and productivity
• bus collaborators - results in increased opportunities for profitable projects

Question 15

Ethical behaviour reduces:

Answer 15

• risk and gives access to cheaper funds which increases profitability

Question 16

Unethical behaviour will at some point:

Answer 16

• be discovered and result in damage to reputation and possible legal charges.

Question 17

Most companies, particularly larger ones, will create a:

Answer 17

Code of ethics (internal policies) and instruct employees to follow them.

Question 18

These internal policies can either be:

Answer 18

• broad generalizations (corporate ethics statement)
• or specific rules (corporate ethics code)

Question 19

The code of ethics will differ between org but will typically contain guidelines on:

Answer 19

• issues such as honesty, integrity and customer focus.

Question 20

It is becoming more common in larger org (particularly finance / healthcare) to appoint an:

Answer 20

• Ethics Officer (compliance officer) to monitor the application of policies and discuss ethical dilemmas with employees