AF437: Ethics and Governance

Week 1: Tutorial Ques�ons

1. Discuss the role of ethics in maintaining public trust in the accoun�ng profession.

Ethics plays a crucial role in maintaining public trust in the accounting profession. Ethical behavior
ensures that accountants act in the best interests of their clients and the public, maintain
confidentiality, and provide accurate and fair financial reporting. This helps to build trust and
confidence in the profession.

2. What are some of the ethical dilemmas that accountants may face, and how can they navigate
these dilemmas?

Accountants may face various ethical dilemmas such as conflicts of interest, confidentiality breaches,
and the pressure to misrepresent financial statements. They can navigate these dilemmas by
adhering to professional ethical standards, seeking advice when needed, and prioritizing the public
interest over personal or organizational interests.

3. Explain the importance of governance in business opera�ons, par�cularly in rela�on to financial

repor�ng and risk management.

Governance is vital in business operations as it provides a framework for organizational control. Good
governance practices ensure accountability, transparency, and fairness. In relation to financial
reporting, governance helps ensure the accuracy and reliability of financial information. In terms of
risk management, governance structures help identify, assess, and manage potential risks that could
impact the organization.

4. Discuss the PwC scandal in terms of the ethical issues and governance failures that were
iden�fied.

The PwC scandal highlighted several ethical issues and governance failures. Ethical issues included
misrepresentation of financial statements and conflict of interest. Governance failures were evident
in the lack of oversight and accountability. The scandal underscored the need for stronger ethical
guidelines and governance structures in accounting firms.

5. What are the future trends in ethics and governance in accoun�ng, and how can accoun�ng
professionals prepare for these trends?

Future trends in ethics and governance in accounting may include increased transparency, enhanced
accountability, and a greater emphasis on stakeholder interests. Accounting professionals can
prepare for these trends by staying updated on changes in ethical and governance standards,
participating in continuous professional development, and fostering a culture of ethics and good
governance in their organizations.