BTC1110 Lecture 2: ACC2400 notes () 2
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ACF2851-Accounting Information System
Week 1 Theoretical foundation and overview
1. Ethical Issue
1. The ethical issue or dilemma
Asking you to be part of deception (to knowingly lie about the transaction)
The consequences are that the result is ______________.
(E.g. avoidance of income tax (Backdating)/ understating the liabilities)
The effects
2. The principle elements
a. Parties (stakeholders) may be harmed:
E.g. Investors, financiers, creditors, employees, auditing profession as a whole
b. Rights or claims may be violated
Your rights as an accountant not compromised by the client
The profession who has a vested in not having their member harm the reputation of the profession
Your ability to keep your client and therefore income (The client is important to you)…
c. Conflict of special interest
You have a professional obligation to advise your client according to ethical standards set by the
accounting professions
You also have a responsibility to earn sufficient income to stay in business…
d. My responsibilities and obligations
(Putting the position on the person in the case)
Based on the professional ethics standards you must act in the best interests of the profession and not
concede to the request of the client
You have an obligation under the act as an agent to act honestly
You also have a duty of care to act in the interest of your client and the ease with which this deception
can be identified
3. Options and Consequences
Specify alternatives and weight up impacts of each on various stakeholders
-State the alternatives
-State the impact of alternative on stakeholders
a) Follow the client: Disciplined by the profession Bring the profession into dispute
b) Process and transaction the client has recorded and presented to you (Seems to be innocence):
-You cannot pretend that you do not know something once you know it
-Of detected, the client will likely tell the Tax Department that they acted with your knowledge and
consent
○
1General Law:
If everyone act in this what would
happen?
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2Respect human beings
Document Summary
Week 1 theoretical foundation and overview: ethical issue, the ethical issue or dilemma. 2 respect human beings (cid:190) asking you to be part of deception (to knowingly lie about the transaction) (cid:190) The consequences are that the result is ______________. (e. g. avoidance of income tax (backdating)/ understating the liabilities) (cid:190) The effects: the principle elements, parties (stakeholders) may be harmed: Investors, financiers, creditors, employees, auditing profession as a whole: rights or claims may be violated (cid:190) (cid:190) (cid:190) Your rights as an accountant not compromised by the client. The profession who has a vested in not having their member harm the reputation of the profession. Your ability to keep your client and therefore income (the client is important to you) : conflict of special interest (cid:190) (cid:190) You have a professional obligation to advise your client according to ethical standards set by the accounting professions.