Lecture 1

Question 1

What are factors that prevent us from thinking rationally?

What is condition for us to apply rational thinking?

Answer 1

• force. Includes lying, stealing and cheating etc.
• condition is freedom ( lack of force)

Question 2

1. Why do we need accounting ethics?

2 reasons

Answer 2

1. Because of situations in the past
2. Accountants have dual competence : both knowledge about technical and professional standards. And this enables them to judge and act according to ethical standards.

Question 3

What is role of accounting ethics in education process?

Answer 3

• in past accounting ethics had a small role in educating accountants. They were just given information about professional code of conduct but it was not tested until 2014 in the us
• and the scandals going on how increased in interest in accounting ethics.

Question 4

What is accounting?

What is Role of an auditor?

Answer 4

• is technical enterprise bound to accounting standards designed to record the transaction of companies. The principles, rules and procedures set patterns for accounting practice

Auditor= review finacial statements using requirements of auditing standards.
- they issue a opinion stating Whether companies have prepared a finacial statement that complies with accounting standards.

Question 5

What some examples of ethics perspectives? Give 4

Answer 5

1. Utiltarnism
2. Deontology
3. Virtue ethics
4. Social contract ethics

Question 6

How are accounting and ethics linked?

Answer 6

• technically proficient
• to be technically proficient means accountant has the ability to apply accounting standards and make accounting decision based on ethical judgements. And be fair

Question 7

Here are 4 different accountants what are they?
1. Destructive
2. Good hearted
3. Opportunitisic
4. Virtuous accountant

Answer 7

1. Destructive = not technical or ethical
2. Good hearted = has ethical not technical
3. Opportunistic = has technical but not ethical
4. Virtuos = has ethical and technical ( the best one )

Question 8

What is accounting theory?

Answer 8

• systematic and logical anaylsis of the practice of accounting

Question 9

What is accounting discourse? What are examples?

Answer 9

• development of special language used by members and produce and communicate Knowledge to those who will use it.

E.g written texts, reports and audit opinions

Question 10

What is the conclusion of accounting ethics?

Answer 10

BASICALLY REQUIRES BOTH TECHNICAL PROFECNICY AND EHTICAL SENSEBILITY

Question 11

What is ethical decision making model 5 steps?

Answer 11

1. Define problem
2. Identify problem solving resources
3. Indentify important characteristics
4. Generate a decision and its alternative
5. PRATICAL judgement and action