INDE
AAA see American Accounting
Association
AARF see Australian Accounting
Research Foundation
abuse of market power 250–2
ACCC mmunity Policy for Cartel
Conduct 253
ACCC v. Metcash Trading Ltd (2011)
252
acceptable level 68
accountability 194, 324
accountants 1, 3, 39, 46, 83, 140–1
accounting work environments
25–32
enlightened self-interest 6
ethical issues encountered by 46
examples of ethical failures by 95–9
as external advisers to SMEs 26–7
key professional relationships 24
public interest or self-interest 3–6
reasons for misconduct 47
relationships and roles 24–5
responses to ethical challenges 47
responsible decision making 3–9
accounting
impacts of higher levels of
depreciation 32–3
impacts of lower levels of depreciation
33–4
restoring credibility to 36–7
role of 309–12
social impact of 32–4
standards 331–2
work environment 48–51
accounting boards 4
accounting entrepreneurialism 6–8
accounting firm regulation 19–20
accounting for sustainability 336
accounting information 3
accounting profession 3, 22
application of professional judgment
16–17
attributes of 12–18
co-regulation of 14–15
code of ethics 15–16
community service 14
distinctive ethos or culture 16
ethical challenges within 46–8
existence of governing body 17–18
extensive education process 13
high degree of autonomy and
independence 14–15
ideal of service to community 13–14
market control view 11
professional discipline 15
pursuit of excellence 13–14
systematic body of theory and
knowledge 12–13
traditional view 11
wellbeing of society 13
Accounting Professional and Ethical
Standards Board (APESB) 13, 15,
18–19
Pdf_Folio:407
accounting professionalism, ideals of
6–8
accounting work environments 25–32
accountants as external advisers to
SMEs 26–7
financial advice environment 30–1
not-for-profit sector environment
31–2
private or business sector environment
27–30
public practice environment 25–7
public sector environment 30
ACNC see Australian Charities and
Not-for-profits Commission
acting with sufficient expertise 85–6
activity-based costing (ABC) 351
Advance Bank Australia Ltd 121
agency costs 134
agency issues and costs 133–5
agency relationship 129
agency theory 132–3
agents 138
AICD see Australian Institute of
Company Directors
altruism 3
American Accounting Association
(AAA) 108
model 108–13
American Clean Energy and Security
Act 357
analysts’ forecasts 302
Anglo-American law 131
Anglo-Saxon model 167
anti-competitive behaviour 250–8
abuse of market power 250–2
agreements between competitors
253–4
approvals procedures 257–8
cartel conduct 253–4
mergers and acquisitions 252–3
resale price maintenance 256–7
unilateral restrictions on supply
255–6
anti-competitive practices 247
anti-corruption 344
APES see Accounting Professional and
Ethical Standards
APES 110 Code of Ethics for
Professional Accountants 13, 15,
43, 58, 60, 62–95
APES GN 40 Ethical Conflicts in the
Workplace Considerations for
Accountants in Business 106
APESB see Accounting Professional
and Ethical Standards Board
APESB Code of Ethics see APESB
110 Code of Ethics for Professional
Accountants
applying code to members in business
and public practice 74–88
audit, review and assurance
engagements 88–100
fundamental principles and conceptual
framework 63–7
approvals procedures, anti-competitive
behaviour 257–8
APRA see Australian Prudential
Regulation Authority
APSC see Australia Public Sector
Commission
arbitrator 249
ASA see Australian Shareholders’
Association
ASBFEO see Australian Small
Business and Family Enterprise
Ombudsman
AS C v. Gallagher (1993) ASCR 43
122
ASIC see Australian Securities and
Investments Commission
AS C v. Healey & Ors (2011) FCA 717
125
AS C v. Hellicar (2012) HCA 17 126
assets 109, 295
assurance services 93–100
ASX Corporate Governance Council
128, 160–1
ASX Corporate Governance Principles
and Recommendations 349
ASX Listing Rules 123, 178
AUASB see Auditing and Assurance
Standards Board
audit and review of financial statements
90–2
audit client 93
audit committee 147–9
audit deficiencies 33
audit quality 227–9
audit regulation 227–9
auditing and accounting standards 226
Auditing and Assurance Standards Board
(AUASB) 14, 18, 161
auditors 150
auditor’s report 226
Australasian Reporting Awards Limited
353
Australia Public Sector Commission
(APSC) 193
Australian Accounting Research
Foundation (AARF) 14
Australian Accounting Standards Board
(AASB) 14, 18
Australian Census of Women in
Leadership (WGEA 2012) 216
Australian Charities and Not-for-profits
Commission (ACNC) 232, 234
Australian Consumer Law 358
Australian Corporations Law 307
Australian Ethical Super 303
Australian Institute of Company
Directors (AICD) 216, 218
Australian mandatory reporting
requirements
issues of disclosure for 335–6
Australian Minerals Industry 340
Australian Prudential Regulation
Authority (APRA) 212
INDE 4
Australian Securities and Investments output restrictions 254 Conceptual Framework for Financial
Commission (ASIC) 7, 226–8, price-fixing 254–5 Reporting
331 cash flows, discounting 295–6 discounting future cash flows 295–6
Australian Securities and nvestments caveat emptor 259 elements of 294–5
Commission Act 1 (Cwlth) 10 CDP see Carbon Disclosure Project entity assumption 297
Australian Securities Exchange 160 (CDP) relevance and faithful representation
Australian Shareholders’ Association CDSB see Climate Disclosure 296
(ASA) 142 Standards Board (CDSB) scope of 294
Australian Small Business and Family Centro case 125 short-term performance reporting
Enterprise Ombudsman (ASBFEO) CEO powers 131–2 296–7
195 chain of command 110 confidentiality 65
AWA Ltd v. Daniels (1992) 10 ACLC 933 charities and not-for-profit sector, conflicts of interest 74–6
130 governance issues in 232–8 conformance 138, 193
Chartered Accountants Australia and consumer protection 258
‘Basic Religious Charities’ 188 New Zealand (CAANZ) 14, 18 caveat emptor to 259
B-Corporation 324 chief executive officer (CEO) 21 misleading conduct and
Bank Australia 304 child labour 321 representations 260–1
Banking Act 19 9 285 churning 271 regulation and 259
best practice, examples of 353–4 civil liability 238 unconscionable conduct 261–6
best-in-class investment 303 civil outcomes and penalties 239–40 consumers 155, 238
beyond reasonable doubt 239 civil penalty 239 and customers 258–66
bid-rigging 254 Clean Energy Act 11 (CE Act) 334 corporate accountability 308–9
Big Four accounting firms 306 climate change reporting Corporate Accounting and Reporting
biodiversity, environmental sustainability accounting techniques 356–7 Standard 345
320 corporate governance and 359–5 corporate culture 101, 208
BlackRock 303 emissions, accounting for levels of corporate failure, common causes of
board 357–9 208–11
chair 144–5 environmental sustainability issues poor risk management 210–11
committees 146–9 320
remuneration 210
functions 145 international response 355–6
wilful blindness 210
powers 130–1 Climate Disclosure Standards Board
corporate governance 207
responsibilities 145 (CDSB) 337, 358
accountants 140–1
structure, roles and responsibilities Climate Solutions Fund 334
agents 138
164 co-regulation 10
ASX Listing Rules 178
board appointments, financial failure and Code of Corporate Governance 332
auditors 150
211–17 code of ethics 15–16
Australian Securities Exchange
appointment of directors 211 Code of Ethics for Professional
160–1
directors departures 212–13 Accountants see APES 110 Code
disqualification 215–17 board 144–50
of Ethics for Professional
election of directors 211–12 Accountants CLERP Act 161–2
evaluation of board performance 212 codes of conduct 246, 259, 282 and climate change 359–6
removal of director 213–15 coercive isomorphism 317 concept 138
board of directors’ responsibility collusive behaviour 253 conformance 138
323–4 Commercial Bank of Australia Ltd v. continued evolution of 231
bonding costs 133 Amadio (1983) 262 and CSR reporting 330
brands 300–1 commissions 78 disclosures 332
bribery and corruption 273–5 common law 239 diversity 216–29
international experience of 274–5 Commonsense Principles of Corporate events and responses 159
Brundtland Report see Our Common Governance 279 family-owned businesses 187–8
Future communication 87 framework 141–57
Building Better Governance 193 community service 14 and fraud 234
business consumers 258 Companies Act 176 improving 229–31
business ethics 246 company law 164 international approaches 161–70
business judgment rule (s. 180(2)) 122 company, improving general perception management 155–60
business leadership capabilities 37 302–3 non-corporate sector 195–206
Business Roundtable 306 compensation 223 not-for-profit organisations 188–91
Competition and Consumer Act 1 OECD 139
CAANZ see Chartered Accountants 237, 241 OECD principles see OECD
Australia and New Zealand competition and stakeholders 248–9 principles
California Public Employees’ Retirement competition law 258 performance 138, 140
System (CalPERS) 158, 163 competition policy 247 principals 138
cap-and-trade systems 356, 357 competitive advantage 248 private benefit, conflict of interest
Carbon Disclosure Project (CDP) 337, competitors, agreements between 234
342 253–4 public sector enterprises 191–5
cartel conduct 253–4 compliance program 241–3 Ramsay report 160
allocating customers, suppliers or conceptual framework approach 68–74 regulators 150–1
territories 254 documentation and advice 74 responsibilities and accountability
bid-rigging 254
Pdf_Folio:408
identifying threats see threats 305–8

4 INDE
 risk of financial failure see financial criminal penalties 238–9 efficiency 194
failure criminal sanctions 239 egoism 53–4
shareholders 141–4 CSR reporting see corporate social Emerging Integrated Reporting Database
SME 187–8 responsibility (CSR) reporting 353
social and environmental performance CSR theory see corporate social emissions
349–50 responsibility theory accounting for levels of 357–9
stakeholders 152–5 cultural diversity 104 trading/reporting schemes 358
theories of 131–7 cultural relativism 105 Emissions Reduction Fund 334
UK FRC Corporate Governance Code culture 104–6 employees 154, 164
176–8 custody of client assets 88 satisfaction 328
corporate governance codes 217 customer owned bank 304 employment model 305
Corporate Governance Principles and customer satisfaction 328 Energy Supply Association of Australia
Recommendations 307 340
Corporate Law Economic Reform de-professionalisation 6 enlightened self-interest 3, 6, 53, 308,
Program CLERP Act 149, decision making 3, 99 313–14
161–2 decisions 43, 44 Enron’s audit committee 149
corporate powers deontological theories (duty based) 52, entity assumption 297
board 130–1 56–8 entrepreneurship 6
CEO 131–2 justice 57–8 environment 344
shareholder 129–30 motive 56 environmental behaviours 311
corporate social responsibility (CSR) rights 56–7 environmental disasters 319
308–9, 324 direct costs 301 environmental laws 174
climate change reporting 355 directors environmental management accounting
corporate governance and 330 appointment of 211 350–1
emergence of 319 election of 211–12 environmental performance 312
financial reporting and limitations removal of 213 corporate governance mechanisms
294 resignation 212 improving 349–50
reporting landscape, changing 298 disclosures Environmental Protection Acts 327
surveys of current reporting practice for Australian mandatory reporting environmental reporting 327–8
352 requirements 335–6 environmental responsibility 311
theories 136–40, 313 corporate governance 332 environmental sustainability 319–20,
corporate stakeholders 152 and remuneration 222 322
Corporate alue Chain Accounting and discounting future cash flows 295–6 E ual Opportunity for Women in the
Reporting Standard 345 disqualification 215–17 Workplace Act 1999 (Cwlth) 216
corporations ethics of 216–17 equality 57
Centro case 125 distinctive ethos or culture 16 Equator Principles 344–5
company secretaries and their duties diversity 216–29 Equator Principles Financial Institutions
128–9 adopting 218 (EPFIs) 344, 345
compliance requirements 118 audit quality and audit regulation equity, financial reporting 295
corporate governance see corporate 227–9 ethical courage 100
governance auditing the financial statements ethical decision making 99
corporate powers see corporate 225–7 American Accounting Association
powers compliance with the Corporations Act model 108–13
corporate structures 119 225 factors influencing 100–5
Corporations Act 116 executive remuneration and individual factors 100–1
director independence 127–8 performance 218–24 organisational factors 101–3
directors and their duties 119–24 documentation and advice 74 philosophical model of 107–8
governance theories see governance Dodd-Frank Act (US) 222 professional factors 103–4
theories Dodd-Frank Wall Street Reform and societal factors 104
James Hardie case 126 Consumer Protection Act 1 ethical decisions, impact of 43–4
officers or agents 127 151 ethical egoism 53
proprietary companies 117 domestic consumers 258 vs. utilitarianism 55
proprietary vs. public companies 117 Dow Jones Sustainability World Index ethical failures by accountants 95–9
public companies 117 347 ethical obligations 246–8
shareholders 116 due care 64–5 failure in relation to employees
types of 116 246–7
Corporations Act 1 8, 10, 18, 116, economic reporting 328–31 trade and labour unions 247–8
131, 208, 225, 237, 284, 307, 331–2 economic stability 321 ethical relativism 104
Corporations and Markets Advisory economic sustainability 321–2 ethical standards 10
Committee (CAMAC) 223, 306 economic system, stability of 322 ethical theories 51, 52
cost of capital 302 economy, and legal system 238–41 deontological theories 56–8
cost-benefit analysis 54 laws leading to criminal penalties normative theories 51–2
creative accounting 34–5 238–9 teleological (consequential) theories
Crimes Act 19 8 120 laws with civil outcomes and penalties 52–5
criminal 238 239–40 virtue ethics 58–60
criminal intent 239 proof, penalties and redress 238 ethical trading 321
criminal liability 238 redress compared with penalties ethics 3, 43, 282–3
criminal offence 238
Pdf_Folio:409
240–1 accounting work environment 48–51

INDE 4
 ethical challenges within accounting
profession 46–8
overview 44–6
professional ethics 43
ethics of character see virtue ethics
ethics of conduct 52–3
deontological theories (duty based)
see deontological theories (duty
based)
teleological (consequential) theories
see teleological (consequential)
theories
EU Transparency Directive 122
European Union Emissions Trading
Scheme (EU ETS) 336–9, 356,
357, 359
exclusive dealing 255–6
expenses, financial reporting 295
external auditors 230
externalities 309–12
fair pay and working conditions 244–5
faithful representation, financial
accounting 296
family and leave entitlements 245–6
family-controlled companies and
business networks 168–71
family-owned businesses 187–8
FASEA see Financial Adviser
Standards and Ethics Authority
FCA see Federal Court of Australia
Federal Court of Australia (FCA) 125
fees 77–8
‘fictional entities’ 116
financial accounting distortions 35–6
Financial Accounting Standards Board
337
financial advice environment 30–1
Financial Adviser Standards and Ethics
Authority (FASEA) 31
financial failure 208–16
board appointments 211–17
corporate failure 208–11
financial markets 265
protecting 268–77
role of information and the media
266–8
role of market regulators 266
role of ratings agencies 268
financial reporting
discounting future cash flows 295–6
elements of 294–5
entity assumption 297
and limitations 294
relevance and faithful representation
296
scope of 294
short-term performance reporting
296–7
Financial Reporting Council (FRC) 9
Financial Reporting Council (FRC) Code
128, 176–8, 197
Financial Stability Board (FSB) 223
Task Force on Climate-related
Financial Disclosures report 301,
360
financial statements, auditing 225–7
forecasts, analysts’ 302
Pdf_Folio:410
41 INDE
fraud 234
FRC see Financial Reporting Council
FRC Code see Financial Reporting
Council Code
free debate 268
free good 309
FSB see Financial Stability Board
fundamental principles of Code of
Ethics 63
confidentiality 65
integrity 63–4
objectivity 64
professional behaviour 65–7
professional competence and due care
64–5
fundraising documents, misuse of
272–3
gender balance of boards 217
gender diversity, in Australian
boardrooms 216
German Corporate Governance Code
165
GFC see Global Financial Crisis
GHG Protocol for Community-Scale
Greenhouse Gas Emission
nventories 346
GHG Protocol Mitigation Goal Standard
346
GHG Protocol Policy and Action
Standard 346
give ‘back’ model 305
global financial crisis (GFC) 123, 208,
223, 298–9
Global Reporting Initiative (GRI) 319,
322, 337, 339
Global Sustainable Investment Alliance
(GSIA) 299
‘goal congruence’ 132
golden handshakes 223
good faith requirement 307
Good Trade 305
goods and services market, protecting
247–65
competition and stakeholders
248–9
consumers and customers 258–66
regulating anti-competitive behaviour
250–8
workable competition 248
governance 3
governance issues
in charities and not-for-profit sector
232–8
in government bodies 231–2
governance theories
CSR theory 136–40
stakeholder theory 135
transaction cost theory 135–6
government bodies, governance issues in
231–2
government intervention 309–12
greenhouse gas (GHG) emissions 301
Greenhouse Gas Protocol (GHG
Protocol) 345–6
Greenhouse Gas Reporting Program
357
Hayne Royal Commission 12
health and safety laws 174
heuristics 105
Hong Kong competition law 253
Hornsby Building nformation Centre
Pty Ltd v. Sydney Building
nformation Centre Ltd (1978)
260
human rights 57, 326, 344
humanistic perspective 319
IAS 16 Property, Plant and E uipment
332
IAS 37 Provisions, Contingent Liabilities
and Contingent Assets 332
IESBA see International Ethics
Standards Board for Accountants
IFAC see International Federation of
Accountants
IFRS see International Financial
Reporting Standards
impact investment 304
inadequate governance 298
incentives 77–8, 299–302
income, financial reporting 294
independence 88–91
chair of board 230–1
ndependent Pricing and Regulatory
Tribunal Act 199 335
indirect costs 301
individual factors, decision making
100–1
individual shareholders 142
inducements 79–81
information and the media 266–8
information asymmetry 143–4
innovation model 305, 328
innovative reporting, examples of
353–4
insider system 164
insider trading 268–70
Institute of Public Accountants (IPA)
14
institutional investors, representational
role of 279–82
institutional shareholder power 142
Institutional Shareholders’ Committee
(ISC) 279
institutional theory 316–18
integrated reporting 325, 340–1
integrated thinking 325–6
integrity 63–4, 85, 194
intergenerational argument 319
Intergovernmental Panel on Climate
Change’s (IPCC) Fifth Assessment
Report 355
internal auditors 226
internal control, and risk management
229–30
International Accounting Standards
Board (IASB) 337
international auditing standards 226
international competition legislation and
regulators 249
International Ethics Standards Board for
Accountants (IESBA) 60
International Federation of Accountants
(IFAC) 12, 27–30, 46, 140, 229,
350
International Financial Reporting
Standards (IFRS) 225
International Integrated Reporting
Council (IIRC) 325, 337
International Organisation of Supreme
Audit Institutions (IntOSAI) 191
International Organization for
Standardization (ISO) 337
International Standards on Auditing
(ISAs) 225
international stock exchanges 265
intimidation 86
intimidation threat 69
IntOSAI see International Organisation
of Supreme Audit Institutions
investigating case manager (ICM) 21
investment community 300
ISAs see International Standards on
Auditing
ISC see Institutional Shareholders’
Committee
ISO 14001 Environmental Management
Systems-Re uirements with
Guidance for Use 349
ISO 26000 Guidance on Social
Responsibility 349
isomorphism 317
James Hardie case 126
justice 57–8
KETS 359
key management personnel (KMP) 214
key performance indicators (KPIs) 221
KMP see key management personnel
KPIs see key performance indicators
KPMG 323, 352
Kyoto Protocol 345, 355, 356
L J HL Bolton Engineering Co. Ltd v. TJ
Graham & Sons Ltd 1957 1 QB 159
at 179 144
labour 344
labour laws 174
labour practices 326
labour union see trade union
lack of auditor independence 35
laws and regulations 104
laws of contract 174
leadership 194
LeapFrog Investments 304
legal and contractual rights 56–7
legal compliance and governance
241–3
legal system 237–42
economy and 238–41
legal compliance and governance
241–3
legitimacy theory 315–16
lenders 154–5
leverage, high 298
liabilities, financial reporting 295
Pdf_Folio:411
liquidity, uncontrolled 298
long-term viability of businesses 321
loss-leader 257
Mainzeal case 124
managerial stakeholder theory 315
mandatory reporting 330–6
accounting standards 331–2
Australian mandatory reporting
requirements 335–6
Climate Solutions Fund 334
Corporations Act 331–2
CSR-related corporate governance
disclosures 332
Emissions Reduction Fund 334
European Union (EU) emissions
trading system 336–9
Modern Slavery Act 18 334–5
ational Greenhouse and Energy
Reporting Act 333–4
National Pollutant Inventory 335
market disruption penalties 255
market dominance 252
market efficiency 269
market manipulation 267–79
bribery and corruption 273–5
phoenix companies 276–9
Ponzi schemes 276
principles relating to 271
rogue trading 275–6
types 271–3
market regulators 266
market sensitive 265
market share 328
market sharing 253, 254
market-based systems 162–3
Marks & Spencer 328
McKinsey & Company 306
measurement, sustainability issues
325–9
mergers and acquisitions 252–3
mid-sized enterprises (MEs) 29
mimetic isomorphism 317
misleading conduct and representations
260–1
Modern Slavery Act 18 307, 334–5
monetisation 326
monitoring costs 133
monopolist corporation 247
moral agency 58–62
moral courage 64
motive 56
NAB see National Australia Bank
narrative reporting 326
National Australia Bank (NAB) 218,
285
National Broadband Network (NBN)
248
National Employment Law Project
(NELP) 300
National Greenhouse and Energy
Reporting (NGER) Scheme 358
ational Greenhouse and Energy
Reporting Act (NGER Act)
323, 327, 333–4
National Pollutant Inventory (NPI) 335
natural capital 325
natural capital accounting 325
Natural Capital Coalition 310, 337
Natural Capital Protocol 310, 341
naturalistic argument 319
NBN see National Broadband Network
Neville’s Bus Service Pty Ltd (NBS) 6
New York Stock Exchange (NYSE)
163
NOCLAR see non-compliance with
laws and regulations
nomination committee 147
nominee directors 121
non-compliance with laws and
regulations (NOCLAR) 60, 81–4
for members in public practice 83–4
non-corporate sector 195–206
non-executive directors, payment for
220–1
non-mandatory reporting 312
guidelines and 336–47
normative isomorphism 317
normative stakeholder theory 314
normative theories 51–2
not-for-profit organisations 188–91
Note Printing Australia (NPA) 232
NPA see Note Printing Australia
NSW Energy Savings Scheme 335
NYSE see New York Stock Exchange
NZ ETS 359
objectivity 64
obligations to employees 242–7
ethical obligations 246–8
fair pay and working conditions
244–5
family and leave entitlements 245–6
occupational health and safety
243–4
occupational health and safety 243–4
OECD see Organisation for Economic
Co-operation and Development
OECD Guidelines for Multinational
Enterprises (OECD 2011) 341–2
OECD principles
corporate governance framework
171–2
disclosure and transparency 174–5
equitable treatment of shareholders
172–3
institutional investors, stock markets,
and intermediaries 173–4
market-orientated economies 171
responsibilities of the board 175–9
role of stakeholders in corporate
governance 174
One Person Tribunal (OPT) 21
openness 194
operating and financial review (OFR)
reporting 331
Organisation for Economic Co-operation
and Development (OECD) 209,
229, 231
organisation wealth 299–302
organisational factors, decision making
101–3
organisational initiatives
board of directors’ responsibility for
323–4
INDE 411
organisational legitimacy 315–16
Origin Energy 316
Our Common Future report 293
Outboard Marine Australia Pty Ltd v.
Hecar nvestments o. Pty Ltd
(1982) 248
output restrictions 254
PAIB see professional Accountants in
Business
Panasonic 300
parental leave legal action 246
pecuniary penalty 239
performance 130, 134, 138, 140, 193
performance-based remuneration
221–2
personal social responsibility (PSR)
356
philosophical model, of ethical decision
making 107–8
philosophy 51
phoenix companies 276–9
pollution, environmental sustainability
320
Ponzi schemes 276
pools 272
poor audit quality 35
poor corporate governance 208
poor ethical cultures 102
poor ethics 282
poor risk management 210–11
predatory pricing 250
preparation and presentation of
information 84–5
price-fixing 251–5
PricewaterhouseCoopers (PwC)
227–32
principles-based vs. rules-based
regulation 151
Product Life Cycle Accounting and
Reporting Standard 346
product responsibilities 326
professional 10
professional accountants 3, 39
business leadership capabilities 37
career perspectives 38
soft skills, knowledge and experience
38
technical skills, knowledge and
experience 37–8
professional accountants in business
(PAIB) 27, 150, 229
activities of professional accountant
29
employed in large businesses 27–8
IFAC research 28–30
in small and medium enterprises 28
professional appointments 86–7
professional behaviour 65–7
professional competence 64–5
professional conduct officer (PCO) 21
professional discipline 15, 20–2
penalties and appeals 21–2
regulation of member conduct 20–1
professional ethics 43
professional factors, decision making
103–4
Pdf_Folio:412
412 INDE
professional judgment, application of
16–17
professional scepticism 119
professions 1, 8–10, 22
credibility of 34–7
credibility under challenge 34
key issues causing reduced credibility
34–6
professional discipline 20–2
quality assurance process 19–20
regulatory process 18–22
self-regulation 9–10
self-regulation to co-regulation
10–12
social contract between society
and 9
trust and 11–12
Project Protocol 345
proof, penalties and redress 238
Property Council of Australia 340
proprietary companies 117
proprietary vs. public companies 117
prospectus 272
provision of non-assurance services, to
audit client 93
public commentary 268
public companies 117
public disclosure 268
public interest 3–6, 61–2
public practice environment, accountants
25–7
roles 26
sub-types 25
public sector 193
public sector enterprises 191–5
public sector environment 30
puffery 261
Puma 328
quality assurance process 19–20
quality rankings 328
quantification 326
Ramsay report 160
Rana plaza building collapse 300, 320
ratings agencies 268
rational decision making 100
RBA see Reserve Bank of Australia
redress compared with penalties
240–1
referrals 87
regulation of member conduct 20–1
relationship-based systems
Asian approaches 166–71
European approaches 163–5
relativism 104
relevance, financial accounting 296
relevant market 248
remuneration 77–8, 129–30, 177, 203,
210, 214, 218–24
disclosure, transparency and 222
executive directors and other senior
executives 221
international debates 219–20
non-executive directors 220–1
payments for past and future
performance 220–4
performance-based 221–2
risk and GFC 223
tightening rules regarding 222–3
remuneration committee 147
representation 277
expanding ethics 282–3
institutional investors, representational
role of 279–82
whistleblower protection 283–91
reputation 300–1
resale price maintenance 250, 256–7
Reserve Bank Act 19 9 193
Reserve Bank of Australia (RBA) 193
residual loss 133–5
responsible decision making 3–9
responsible investment 299–303
Responsible Investment Association of
Australia (RIAA) report 299
restricted egoism 54
rights 56–7
human rights 57
legal and contractual rights 56–7
risk control systems 230
risk management 229–30
internal control and 229–30
risk management committee 150
risk management incentives 301
rogue trader 275
rogue trading 275–6, 285
rule-based codes 68
runs 272
safeguards 73
Samsung 300
Sarbanes-Oxley Act (2002) 122, 147,
148, 183, 221, 230, 284
Satyam Computer Services 168
second opinions 87
Securities and Exchange Commission
(SEC) 222
self-interest 11
self-interest, accountants 3–6
self-managed superannuation funds
(SMSF) 7
self-regulation, professions 9–10
senior members in business 82–3
shadow banking 298
shareholder primacy
approach 308
vs. social contract 307
shareholder spills, reaction to 215
shareholder threat 281
shareholder wealth 299–302
shareholders 116, 141–4, 164
activism 158
Anglo-American legal approaches
174
equitable treatment of 172–3
market-based systems 169
power 129–30
representation 277
rights and participation mechanics
164
short-term performance reporting
296–7
Singapore Stock Exchange Sustainability
Reporting Guide 332
small- and medium-size enterprises
(SMEs) 28
SMSF see self-managed
superannuation funds
Social Accountability 8 nternational
Standard (SAI 2014) 348
social audits 347–8
social behaviours 311
social contract 9, 298, 315–16
shareholder primacy vs. 307
social enterprises 304–14
social impact of accounting 32–4
higher levels of depreciation 32–3
lower levels of depreciation 33–4
social justice rationale 217
social performance 312
corporate governance mechanisms
improving 349–50
social reporting 326–7
social responsibility 311
social return on investment (SROI) 327
social sustainability 320–2
socially responsible investment (SRI)
302–5
societal factors, decision making 104
society 326
soft-dollar benefits 78
special purpose financial statements
89–90
stakeholder theory 314–15
managerial 315
normative 314
stakeholders 164, 314
concept 152
consumers (customers) 155
corporate governance 174
description 152
employees 154
issues 164
map 152–4
relationships 153
suppliers and lenders 154–5
theory 135
workforce 176
stewardship 194
stewardship theory 132
suppliers 154–5
supply chain management 321
surveys, of current reporting practice
352
sustainability 325
board of directors’ responsibility for
323–4
bond 304
environmental, economic and social UN 17 Sustainable Development Goals
322 (UNSDG) 293
reporting 325 UN Principles for Responsible
Sustainability Accounting Standards Investment (UNPRI) 302
Board (SASB) 337, 346–7 unconscionable conduct 261–6
sustainable distribution 48 UNCTAD see United Nations
sustainable investment 303–4 Conference on Trade and
Sustainable Practice Framework 340 Development
Swiss ETS 359 unethical decisions, impact of 43–4
Unilever 301
United Nations Conference on Trade and
Task Force on Climate-related Financial Development (UNCTAD) 122
Disclosures (TCFD) 301, 337 United Nations Framework Convention
Tax Practitioners Board (TPB) 10 on Climate Change (UNFCCC)
Taxation Administration Act 19 3 355
285 United Nations Global Compact
teleological (consequential) theories (UNGC) 337, 343–4
52–5 United Press International (UPI) 268
egoism 53–4 United States False Claims Act 284
utilitarianism 54–6 unsupportive management 101
teleology 56 US EPA GHG Reporting Program 359
The Body Shop 348 utilitarianism 54–6
The UK Corporate Governance Code vs. ethical egoism 55
128
thematic investment 304 Victorian Public Sector Commission
third-line forcing 256, 257 (VPSC) 194
threats 69 virtue ethics 58–60
addressing 73–4 moral agency 58–62
categories 69 virtues 58
evaluating 71–3 Visa 301
examples of 70–1 Vision 2050 299
identifying 69–74 voluntary disclosure theory 302
Tokyo CapandTrade Program 359 VPSC see Victorian Public Sector
top-tier management 101 Commission
TPB see Tax Practitioners Board
trade union 247 waste, environmental sustainability
transaction cost theory 135–6 320
transparency 194, 322 weaknesses, in internal control 230
and remuneration 222 whistleblowers’ protection legislation
Treasury Laws Amendment Enhancing 284–91
Whistleblower Protections Act whistleblowing 100–284
19 285 wilful blindness 210
Woodside Petroleum Limited 353
Tricker model 145
workable competition 248
trust and professions 11–12
workplace 326
turnover rates 328
Workplace Gender Equality Act 180
two-strikes rule 214, 215
workplace injuries 243
World Business Council for Sustainable
UK Bribery Act 1 274 Development (WBCSD) 299, 337
UK Companies Act 307
UK FRC Corporate Governance Code
176–8, 197

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INDE 413