Module 6 Tutorial Question 2

Ethical Dilemma Professional Judgement Workpaper

Instructions: Your manager has assigned you the following ethical dilemma task.
Please review the background information and use this workpaper to record your
responses in the blue boxes. Remember to complete the workflow section here.

Prepared by: Workpaper number:

Reviewed by: Date:

By phone By video conference In person

Ethical dilemma – Background Information

Fred Smith is an accounting student who is also a student member of a

professional accounting body. Whilst studying, Fred set up an accounting and
taxation practice offering services to the general public. Many of Fred’s friends
have sought his services for taxation advice and the business is going well with
enough profit to cover his study and living costs. Fred is not a registered tax
agent.

Fred has recently completed the tax module in the professional development
program for the professional body.

Identify and describe the ethical issue(s)

Identify the stakeholder(s) that are affected by Fred’s actions

Has Fred’s actions breached any of the ethical principles under APES 110:
Code of Ethics for Professional Accountants?
i. If your answer is yes, identify the principle(s) that have been breached.
What course of action could Fred have taken to avoid this breach?
ii. If your answer is no, provide a statement to support your decision

Provide a recommendation on how the accounting professional bodies

should deal with Fred over this ethical issue