In order to resolve the conflict a choice must be made that by definition will leave at least one of the ethical principles compromised. We’ve always done it that way - You don’t want to change things simply for the sake of changing them. No exceptions - Rules that are followed blindly, without taking specific situations into account, can lead you to make wrong decisions. The following analyses of threats are included in the ethics codesof the UK professional accountancy bodies. In the price-fixing example, it's likely that you would feel intimidated by the finance director, who presumably has an influence over your career prospects. • Intimidation threat – the threat that a professional accountant will be Question 4c - December 2015. For example, safeguards can range from government regulations and professional standards, to people or policies in your workplace. Help is at hand in the form of the conceptual framework set out in our Rulebook. Auditor independence will be compromised where ethical threats are faced. Based on the IESBA model, this principles-based approach to addressing ethical dilemmas will equip you to recognise threats and satisfy yourself that you’ve acted ethically when addressing them. (a) Ethics. In this example, you may: abide by the wishes of the finance director; resign; or take a less extreme course of action, such as discussing the issue with appropriate people initially. This may not always be the case. Threats to the fundamental principles can come from several directions: Self-interest threats - These come about if you or a close family member stands to gain (or not lose) something from a particular course of action. Only you or a disinterested third party who knows all the facts can determine whether the threat is significant. ACCA published Rulebook for all of its members, or appropriate to, students, affiliates or member firms of ACCA. Which fundamental principles are threatened? You may need to consider alerting appropriate authorities about this arrangement - in other words, to consider the act of ‘whistleblowing’ and all its wider implications for you, your organisation, its stakeholders and others. Topics will range across all the Strategic Professional papers and Law, with a focus on short, meaningful, and useful videos to help you pass your ACCA exam and continue your ACCA Journey. There are many hardships related to studies in ACCA. Effect: Familiarity or Self interest threat. Professional Ethics. An introduction to ACCA AA (F8) A4b. Such obstructions are called threats to fundamental principles. Do internal procedures exist that mitigate the threats? June 2015, Q1- Ethical threat Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › June 2015, Q1- Ethical threat This topic has 0 replies, 1 voice, and was last updated 17 minutes ago by draiells. x�Z�rܸ��S�Q�����9i;�T*�c%{��@q0�r�)z��6��}�5���X�2���n|_w_�#}���2g%2��$�0�^R�y2���~���~Pm���WԖ��y�'�� �M�)���b/�� ��&���ʘR���$�Tt�{a��A&�o�YW@��c���g#xQ�yUP�Ki0�i��%T|/]�����gzw9j�`�'��&K|�LH/JdF�~�|vzA'���GO�Ogo6�ʟ�ӥȌ����g���G���>���ܜ�O�����+��f�3�N���K��d�7K��I��0�?���M��2�gr�5�j����fv��&`.�����_'����^=)"!�����|qOd &������v��䙣���Ф#�A����x�\��`�1`�7o�: If you can’t identify an existing safeguard or implement a new one, you should refuse to carry out the activity in question. The 'disinterested third party' is the theoretical voice of reason you would consult to help you gain perspective on the issue. An ethical threat is a situation where a person or corporation is tempted not to follow their code of ethics. 4. This video talk about fundamental ethical principles asked in ACCA SBL exam. ACCA study texts, exam kits, notes all accountants work in line with the fundamental principles; compliance with the fundamental principles is regulated, and; sanctions are imposed on those professional accountants who don’t comply. Beware of emotive language. First, there are the safeguards created by laws and regulations in your country and by your own accounting profession. All three companies have agreed to increase their prices. An example would be a financial interest in a client. Self-review threats - These often exist when you're in the position of having to review your own work. %PDF-1.3 Many students think that… 0 Comments. If the situation gets difficult, you may need to explore your options. A4b. Study Material: ACCA F8 Audit & Assurance AA. The request follows a pricing agreement drawn up between the three main companies supplying these drugs to the national health service of a country. Accountants (IFAC), ACCA is required to apply ethical standards that are at least as stringent as those stated in the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (the IESBA Code). The Five ethical threats … cl�6����49V>���AJ��^?�zh�P������0�5�~H?B�$)�5a�sxNk1�ƏyM��3�#/���Μ��`�d���A��;�� 0�O�E��Νx10|���*�ǰ�6Β��l���m^jKgö�)��[� -8/j���,�"1k�2z��mc4�^�T4u��uG_��eScG�:o˦u�UX$��W�����i���P�j�꾣�ʫ������!�ߔ躄%TwJeMW >�o4���k��Q���Z��7�貚1x�#�c��a#x2N���7�ڨt8���X���Y��m��S�Ծ���+E�j%%0m�fJ�%o��3�"���ځ���,횖 There are numerous websites and platforms that offer Support, lectures, and study material to ACCA students. When ethics appears in an optional question in the Paper P7 exam, it is often a popular choice for candidates, but their answers often lack detail and are not well applied to the question scenario. You’re well aware of the fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. Please visit our global website instead. �SV]��- There are often many other solutions to a problem beyond the two extremes mentioned. If the client fees are a large proportion of a firm’s total fees, there is a significant self-interest threat. You should try to establish the reason for the price-fixing arrangement and question its legality as well as its ethics. Typical threats 4 / 9. Previous Next. Posts. 3. the introduction of organisational ethics policies and procedures; the development of training for all employees to ensure their compliance; a culture that encourages employees to communicate to senior levels about ethical issues without fear of retribution. Of course, there are some threats which are, in themselves, so serious that no adequate safeguards can mitigate against them. The discussion with CFO can threat the fundamental principles, in this discussion there are threats to integrity, Objectivity and Professional behavior. 2. With so many colleges offering ACCA Program in Pakistan, it is difficult to choose which one to join. These safeguards can be reinforced by controls established in the work environment, such as: Unfortunately, the circumstances of our example would suggest that these safeguards aren’t going to be adequate in the face of the threats presented.
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