Tutorials Anwer - Chapter 5 (professional Accountant)
Autor: Nur Dayana • November 27, 2016 • Course Note • 595 Words (3 Pages) • 976 Views
TUTORIALS ANWER - CHAPTER 5 (PROFESSIONAL ACCOUNTANT)
JUNE 2016 PART A QUE 3d
- The public and particularly a client, expect professional accountants to perform fiduciary services with integrity, honesty and objectivity. Explain your understandings on the terms integrity, honesty and objectivity of the professional accountants.
Integrity | Is an assurance whatever the service, a professional accountant will perform it thoroughly and fairly. No details will be omitted, understated or misstated that would cloud the truth, nor would an analysis be put forward that mislead users. |
Honesty | Relates to truthfulness or accuracy. It implies in all aspects of data gathering, measurement, reporting and interpretation. |
Objectivity | It implies freedom from bias in the selection of measurement bases and disclosure, so as not to mislead those observed. It can be maintained with independent mind or free from undue influence from one stakeholder or another. |
DECEMBER 2015 PART B QUE 2C
(c) “Independence in appearance”
- Rule of independence requires one to both independence in appearance and in fact
- Zaki may be independent in fact because he did not force anyone to make any free contributions
- But he did not show any independence in appearance when he is seen together during the campaign while discharging his duties.
- It could be concluded that “independence in appearance” is applicable because he is a health inspector and has the power to instruct the restaurant owners to abide by him in order to give a favorable health report.
JUNE 2013 PART B QUE 2A &2B
QUESTION 2
- Explain the ethical issue in the above case and its possible implications to MSC.
The ethical issue related to the case is the environmental pollution issue. Nicky is willing to sacrifice the environment in order to maximise the profit.
Implication for MSC action would be
MSC be barred from the particulate port
Legal suit against MSC
Hefty penalty might be imposed
Stricter regulations
Loss of reputation
- Analyse Nicky’s action based on three (3) fundamental principles as stated in the International Federation of Accountants (IFAC) 2005 Code of Ethics.
Integrity
Nicky did not display the principle of honesty in her dealing with the waste. Her action put the environment and the community in a disadvantage position.
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