Ethical Dilemmas - 30%

Question 1

What are the consequences of unethical behaviour as an accountant

Answer 1

Professional disaplinary proceedings
Fines or being struck off
Loss of job and career
Loss of personal reputation
Prosecution if behaviour is criminal
Liable for damages to affected parties

Question 2

What is the consequences of unethical behaviour to the accountancy profession

Answer 2

Loss of reputation
Reduced employability of accountants
-Reassure from outside bodies to tighten up regulations
Imposed regulations by government
Loss of ‘ charted ‘ status

Question 3

The consequence of unethical behaviour on society as a whole

Answer 3

-businesses could not function if staff behaved unethically

Financial market could not function if they con not reply on accounts

Less tax and duties collected

Criminal elements of society may gravitate towards the profession to make money from financial crime

*society would not function as we know it without ethical accountants *

Question 4

Define ethical conflicts

Answer 4

Ethical conflicts are situations where two ethical values or requirements seem to be incompatible. They often arise from tensions between societal, personal, corporate and professional values. They also arise where the interest of the different types of company stakeholders clash

Question 5

What are the two types of stakeholders

Answer 5

Financial stakeholder
Interest stakeholders

Question 6

Define financial stakeholders

Answer 6

They have a financial relationship with the organisation

Question 7

Define interest stakeholders

Answer 7

They are interested in how the organisation behaves

Question 8

Who are financial stakeholders?

Answer 8

Shareholders and other investors
Employees
Customers
Suppliers

Question 9

Who are Interest stakeholders

Answer 9

Media
Government
Competitors
Regulators

Question 10

What to do when dealing with an ethical matter ?

Answer 10

It is important to be transparent, consider the effect on others and whether a rational bystander would think your decision is fair

Question 11

What are the steps to approach for conflict resolution based on cimas ethical checklist

Answer 11

Step 1: gather records and facts
- identify all relevant facts
- do not reply on assumptions, word of moth or gossip

Step 2 : decide if the issue is ethical
- how does it feel?
- what would you think if it was reported in the media or those close to you find out about it ?
- refer to cimas ethical code
- consult your organisations rules and policies on the matter

Step 3: decide if the issue is legal in nature
- find out if the issue is covered by any law
- check to see if it is covered by government or professional regulations

Step 4: identify any of CIMA’s fundamental principles that may be effected
- integrity, objectivity, professional behaviour, professional competence and due care, confidentiality

Step 5: identify anyt affected parties
- those effected may be individuals, organisations or other stakeholders
- how are they effected? Is there any conflict between them ?
- what happens if you don’t take any action?

Step 6: consider possible courses of action
- consider internal grievance procedures
- potential escalation to legal or professional advisers, or company auditor
- ensure all actions to resolve the issue are documented

Step 7: if necessary seek professional or legal advise
- cimas ethics helpline
- personal legal advise
- whistleblower hotlines

Step 8 : refuse to be associated with the conflict
- move departments
- set out in writing that you do not wish to be associated with the issue
- may affect your employment status
- take advise if you are in anyway implicated in the matter