INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA FINANCIAL REPORTING COMPONENT B: ETHICS

Transcription

1 INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA FINANCIAL REPORTING COMPONENT B: ETHICS SECTION ONE: ETHICAL FRAMEWORK CONCEPTS AND VALUE - Nature of ethics - The ethical framework for accountants - Rules-based and principles-based approaches - Ethics and the profession - Accountants and their stakeholders - Interests of stakeholders and conflicts - Professional conduct and the public interest - Behaviour and influences of stakeholders - Commonly used theories and principles - Theories of moral development - Virtue ethics theory and value based education - Ethics and culture - Professional values, ethics and attitudes and the code of conduct for accountants - Importance of ethical courage and ethical leadership REVIEW QUESTIONS 1. Define Ethics and explain the two forms it could take.

2 2. Distinguish between Rules-based ethics and Principlesbased ethics. 3. Explain the role of the accountant and stakeholders interests 4. List and briefly explain common ethical theories and principles 4. Explain the relationship between ethical courage and ethical leadership.

3 SECTION TWO: THE ENVIRONMENT: CORPORATE, PROFESSIONAL AND REGULATORY - The corporation and its interests - Professional responsibilities - The accounting profession and public expectations - Professional and legal requirements in financial reporting and auditing - The concept of accountability - The legal framework for businesses and accountants - The role of accountants in the globalisation context - The impact of legal and other reforms - Investigative reports and professionalism - Developments in the profession to enhance professional values, ethics, and attitudes, including codifications and education initiatives

4 REVIEW QUESTIONS 1. Distinguish between corporate sole and corporate aggregate 2. Enumerate the problems of accountability 3. Mention recent developments that affect the accountants in relation to globalization 4. Mention at least 5 examples of legal frameworks affecting businesses and accountants. 5. Enumerate recent steps taken to enhance accountants professional values, ethics and attitudes.

5 SECTION THREE: PROFESSIONAL ETHICS - Compliance with fundamental ethical principles - Codes of ethics, including corporate codes and underlying rationale - Technical and ethical standards - Independence, professional skepticism, accountability and the public interest - Self-regulation and oversight functions - Quality control and peer reviews - Current developments in professional ethics and conduct REVIEW QUESTIONS 1. Enumerate the fundamental ethical principles of accountants 2. List the code of ethics provisions for minimization of conflict of interest. 3. Distinguish between technical and ethical standards for the accountant

6 4. Explain the reasons why regulation is necessary for accounting practice 5. Explain peer review as a form of quality control.

7 SECTION FOUR: DECISION MAKING IN ETHICS, ETHICAL THREATS AND SAFEGUARDS - Ethical decision making models - Definition and scope of ethical threats and issues in accounting - Introduction of safeguards at professional and firm levels - Conflicts of interest in corporate and professional environments - Different types of ethical threats and ethical issues - Specific ethical threats and safeguards in accounting - Ethical threats in auditing and assurance service - Ethical threats in other financial services and safeguards - Whistle-blowing cases and solutions - Analysis of threats and safeguards REVIEW QUESTIONS 1. Briefly describe the ethical decision making models

8 2. Enumerate ethical threats peculiar to accountants 3. Mention established ethical safeguards to minimize ethical threats 4. Mention factors to justify whistle blowing 5. Enumerate examples of whistle blowing instruments in an organization

9 SECTION FIVE: CORPORATE GOVERNANCE - The nature, significance and scope of enterprise governance and threats to effective governance - Theoretical framework including agency problems - Minimizing the threats of agency costs - Corporate and other social responsibilities - Stakeholder relationships - Regulatory framework for corporate and enterprise governance - The role of accountants and auditors in governance framework - Governance: good practice and issues - Analysis of cases of failures - Global developments in enterprise and corporate governance - Benchmarking governance cases in practice

10 REVIEW QUESTIONS 1. Define Corporate Governance and relate it to ethical standards and business effectiveness 2. Explain the theoretical framework for corporate governance 3. What are agency problems under corporate governance 4. What is the relevance of benchmarking governance cases 5. Explain the role of accountants and auditors under corporate governance.

11 SECTION SIX: SOCIAL AND ENVIRONMENTAL ISSUES IN ETHICS - The scope, background and concept of corporate social responsibility - The accountant and society including agency problems - Minimizing the threats of social costs and liabilities - Developments in social and environmental frameworks - SOCIAL AND ENVIRONMENTAL ISSUES IN ETHICS (5%) (a) The scope, background and concept of corporate social responsibility (b) The accountant and society including agency problems (c) Minimizing the threats of social costs and liabilities (d) Developments in social and environmental frameworks

12 (e) Measurement and accountabilities in social and environmental reporting (f) Issues in social responsibilities and accountabilities (g) The role of accountants and auditors in society and businesses (h) Analysis of cases of social and environmental failures (i) Social and environmental accounting and issue - Issues in social responsibilities and accountabilities - The role of accountants and auditors in society and businesses -Analysis of cases of social and environmental failures - Social and environmental accounting and issues. REVIEW QUESTIONS 1. Define corporate social responsibility and examine the arguments for and against. 2. Examine the role of accountants and auditors in relation to social responsibility

13 3. Enumerate the social and environmental frameworks. 4. How is social and enconmental issues.