Tinaan, Alexis Jaina E.

3A4 Formative Assessment no 2

M1F2 PVEA and Accountants

Answer the following in three to five sentences.
1. Compare and contrast the two accounting metaphors. Is one more important than the other?
Defend your answer

The Applied Finance view, also called the master metaphor, means that when we look at
our job as accountants, we are normally driven by financial value and we view of accounting as
application of finance where we look at accounting in the lens of, for example, cost-benefit analysis
or incremental analysis, which some would say is a very act utilitarian approach. From the point
of view of the Applied Ethics on the other hand, ethics is not just an afterthought, but ethics is the
foundation, the soul, and the heart of the accounting enterprise. Both metaphors go hand and hand
because they are equally present in our daily professional life as accountants. They are
complementary and not exclusive so one is not more important than the other. The goal is for us
to be cognizant that these metaphors exist and that both metaphors are important in our
understanding of the accounting profession.

2. Discuss the Professional Values, Ethics, and Attitude requirements for accountants. Assess
your current level of proficiency vis-à-vis the requirements of the IES. Defend your
assessment.

The first competence area that is required of a professional accountant is Professional

skepticism and professional judgment, which means that an accountant must be able to apply a
questioning mindset critically to assess financial information and other relevant data and also be
able to identify and evaluate reasonable alternatives to reach well-reasoned conclusions based on
all relevant facts and circumstances. Second, is the Ethical principles, which requires an accountant
to be able to explain the nature of ethics and the advantages and disadvantages of rules-based and
principles-based approaches to ethics, to identify ethical issues and determine when ethical
principles apply, to analyze alternative courses of action and determine the ethical consequences
of these, and etc. And the third and last competence area is Commitment to the public interest,
where an accountant is able to explain the role of ethics within the profession and in relation to the
concept of social responsibility and the role of ethics in relation to business and good governance.
As I am only halfway in my academic venture into the world of accounting, I can say that I am
only on the foundational level, but hopefully by the end of my undergraduate course, I will be able
to reach the required proficiency level and be worthy enough to call myself a professional
accountant.

3. Discuss how the Professional Quotient framework views Technical and Ethical
Competencies Quotient?

All professional accountants will need to balance their Professional Quotients (PQ) to fit
their role and stage of career, and the Technical and Ethical Competencies Quotient is at the center
and at the heart of it all. It is emphasized that the technical aspect and the ethical aspect of this
quotient are not to be treated as separate quotients, but rather, they are treated as one because
technique and ethics must go hand in hand as to not to abuse the technical aspect, just as what
happened in the Enron scandal. Technique must be partnered or moderated by ethics to produce
the most efficient way of conducting your role as an accountant.

References:
Pava, M. L. (2010 ). Teaching Accounting Ethics:. Retrieved from
http://raw.rutgers.edu/docs/seminars/MosesPavaPaper.pdf
International Education Standard. (2014). Retrieved from
https://www.ifac.org/system/files/publications/files/IAESB-IES-4-(Revised)_0.pdf
ACCA. (n.d.). Retrieved from https://www.accaglobal.com/ca/en/qualifications/why-acca/competency-
framework/quotients.html