M1 Acct & Society 课件 book

1 Nature of acct
Public interest&self-in, decision-making (govern,accountability,ethical),enlighted self-int, 1 1-6
professionalism&entrepreneurialism(4E),profession,self-regulation&co-regulation,professional,trust&credibility 1-2 6-10
traditional vs market control view 11
Attributes ofbody
1.systematic profession-8-Greenwood:
of theory and knowledge, 2. extensive education 3.service to community 4. high autonomy and
independence, 5. code of ethics 6. distinctive ethos or culture 7. professional judgment, 8. existence of a governing 3 12-17
body

2 Regulatory process
reason, past &now, Co-regulatory(Corp Act,FRC,APESB,ASIC & CPA...) 5 18
Quality Assurance-APES320/ Professional discipline(member compaint 8步骤),penalty 6 19

3 Acct role, relationship, activities-5 environment

public practice(external adviser to SME: compliance to valuecreate)/ private or business corp(PAIB,role SME vs
large comp)/ Public sector(GBE,SOE,Corporate Module-value for money)/ Financial advice(FASEA regulatory-
licencing,Risk-Self interest dilemmas)/ NFP(tendering) 7 25-31
Social inpact: macro-listed corp&eco, micro-depre level&bonus,ASIC annual review 9 32

4 Credibility challenges
IFAC 4 issues(creative acct,poor audit quality,audit independ,finc acct distoritions),restoring. 10 34-36

5 Capability consideration- leadership, 早期TSKE&后期SSKE(interperson-leadership-communica) 10 37

M2 Ethics
1 concept (professional&ethics) & impact
Professional ethics,ethic principles// Impact on 2 level-indi&profession, ethical dilemma-Dr Kidder 11 43-45
challenges (IFAC research): issues- misleading reporting> fraud& tax evasion> transparency and
confidentiality.Reason- pressure client>conflic intrest>manager //work environment 46

2 Ethic philosophy(religious western&eastern)- normative theory:

-ethic of conduct : teleological (Egoism&utilitarianism) and deontological-Kant(intention-Duty& right and justice) 51-57
12-16
-ethic of character(virtue ethics-Aristotle)// Moral agency 58
Descriptive theory:Psychological egoism-selfish

3 APES110 Code of ethics 60

intro: from IFAC,APESB independent,NOCLAR 17
Part1
5 fundamental principle :1.Integrity: trust,honest,no reckless,omits,false/2.Objectivity: bias,confic intrest, undue
infelence/ 3.Professional competence and due care: relevant skill, act professionally/
4.confidentiality:authorise,3个例外/5.Professional behavior:reputation,no夸大能力,no同行对比) 18-19 63-66
Conceptual framework：
Indetify 5threats: 1.Self-interest,2.self-review,3.advocacy(prospect,代表客户打官司,promote 19-20
service),4.familiarity,5.intimidation 68
Evaluate and address: reasonable 3rd test, acceptable level,safeguard-Institutional& work environ

Part
2&3 1.conflicts of interest /2.remunation, incentives,commision&soft-dollar benefit /3. inducements(gift,hospitality)/
4.respond to NOCLAR(obtain matter-address-determine whether further action-whether disclosure-documentation)
/5.preparation information(pressure-SG.consultation with superiors)/ 6.acting sufficient expertise-training,time 21-26
more /7.pressure to breach the fundamental principles 74-86
Part3 additional: 1Professional appointment(communication, referral-authorisation), 2second opinion-
authorize,3custody clients assets 86
Part4 indepedence=objective+integrity,special purpose FS,audit and review engagement表格SG,(provision of non-
assurance service to an audit client-self0review,self-interest),assurance engagement 26-28 88-91

4 factors influence decision-making:individule,organisation(written code+comply),prefessional,society 29 100-104

5 Ethical decision-making model

heuristics经验主义& systematic approach (philosophical model-combine normative theory& AAA model) 30-31 105-109
AOEIII
PYRXW-P6HWM-YRXCW-299VT-92VRZ
Part 2&3 1.conflicts of interest

2.remunation, incentives,commision&soft-dollar benefit

3. inducements(gift,hospitality)
4.respond to NOCLAR(obtain matter-address-determine whether further action-
whether disclosure-documentation)
5.preparation information(pressure-SG.consultation xxx)
6.acting sufficient expertise--training,time more
7.pressure to breach the fundamental principles.

Public 1Professional appointment(communication, referral-authorisation)

2second opinion-authorize
3custody clients assets

AAA Step2. What are the ethical issues in the case?(p388)

(a) Who are the stakeholders? The ethical issues will most likely arise out of
conflicting interests between and among the stakeholders. The stakeholders can
be listed as follows.
– Davis :he has knowledge of the accounting manipulation and feels he has an
obligation to act on this information.

– Shareholders or owners: accounting adjustments can affect the share price,

profit and balance sheet figures, all of which affect shareholder wealth and
investment decisions.
– Unions : they use net profit as a basis for negotiating wage levels, so reduced
profit from the accounting adjustment will affect their bargaining position.

– The CEO of the parent company :he or she is ultimately responsible for the
fair presentation of the financial reports; in this case, the CEO will ultimately be
held accountable for the manipulation or may, in fact, be the instigator.
– The external auditors: they have signed off on the accounts that are
potentially misleading.
(b) What are the ethical issues? Most of these concern Davis’s integrity,
namely:
– his integrity versus his job security
– his integrity versus his loyalty to the firm
– his integrity versus the reputation of the external auditors
– his integrity versus the reputation of the parent company’s CEO
– the company’s financial health versus the unions’ right to information.
An ethical issue or dilemma arises when there are two or more equally
compelling courses of action
without clear resolution. The conflict could involve two or more obligations,
duties, principles, rules or
loyalties. But irrespective of the nature of the conflict, the two principles, duties
and so on, contradict each
other. Similarly, each alternative has negative and positive outcomes, and
choosing one alternative will
come at the expense of the other.
In this case, Davis’s integrity is at odds with his self-interest and the interests
of the company as well as
with external parties such as the shareholders and the union. In brief, if Davis
remains silent, he protects
his self-interest, but this comes at a cost to the unions and shareholders (who act
according to diminished
information) and to his own integrity. If Davis acts on this information, he
protects his integrity but it
may disadvantage his career. Each alternative Davis faces produces negative and
positive outcomes and
supports different principles.
principles threats Circumstance
two parties-p74
fee level,contingent
Self-interest fee,referral feep77
Self-interest,familiarity,intimidation p80

integrity,objectivity self-interest
professional competence and due care
intimidation

integrity,professional behavior,competence
and due care self-interest, profe competence and due care

intimidation
SG
p75

P78
p80

consultationxxx
obtain additional training,tome avaiable,assisstence from other

p87the member should clearly inform

the client about limitations surrounding any opinion and also provide the existing accountant with a copy
of the opinion
seperated from other assests, and used only for intended purpose
M3 FRC vs ASX-gender diversity

nomination committee
FRC ASX

member majority independent min 3, majority independent

independent, not CEO, not board chair, not
Chair of committee >9years independent, not CEO
all director annual re-election x

half of board be independent/ Non-exe

Board prime role in appoint,remove CEO x

Remuneration committee
FRC ASX
member min 3(or2), all independent min 3, majority independent
Chair of committee not board chair independent

remuneration for Non-executive has time

commitment, not has performance-related no one can decide their own
(eg.share option) remuneration
 Audit committee
FRC ASX SOX
min 3, all Non-executive,
min 3(or2), all independent majority independent all independent

* audit committee has primary

not be member independent, not board chair
* ASX 500 compulsory relationship among external auditor
*min 1人 has finc experience (can remove ext auditor)

* Board should receive

CEO/CFO declareation before
x approves FR x

Risk committee
FRC ASX
X min 3, majority independent
x independent