Ethics and Governance Study Index

Key Word Module Page Remark

altruism 1 3 action s that bring no bene t and even be at their own expense

reasonable decision making 1 3 include governance, accountability and ethics

enlightened self-interest 1 3 doing well by doing good

ACNC 1 5 Australian Charities and Not-for-pro t commission

APRA 1 5 Australian Prudential Regulation Authority (banking, insurance and superannuation)

ASIC 1 5 Australian Securities and Investment Commission (corporate, markets, nancial

services and consumer credit), carry out under Corporate Act

ASX 1 5 Australian Securities Exhange

ATO 1 5 Australian Taxation O ce

AUSTRAC 1 5 Australian Transaction Reports and Analysis Centre (AML and counter terrorism
nancing laws)

Australian Sanction O ce 1 5 Computer with sanctions against individuals or countries

CA ANZ 1 5 Chartered Accountants Australia and New Zealand

Competition and Consumer Act 2010 1 5 Protect people by promoting competition, fair trading, consumer protection

APESB 1 5 Accounting Professional and Ethical Standard Borad

AASB 1 5 Australian Accounting Standard Board, report to FRC

AUASB 1 5

Corporation Act 2001 1 6 Main piece of legislation regulation companies in Australia

CPA Australia 1 6 one of the three largest Accounting organization

CPA Australia By-Laws 1 6 membership rules

FRC 1 6 Financial Reporting Council

IFAC 1 6 International Federation of Accountants

IFEA 1 6 International Foundation of Ethics and Audit (oversees the work of IAASB and IESBA)

IFRS Foundation 1 6 Oversee the development, enforceable of IFRS standard

IOSCO 1 6 The international organisation of securities commission, ASIC is a member

IPA 1 6 The institute of Public Accountants, one of the three in Australia

OAIC 1 7 O ce of the Australian Information Commissioner

PIOB 1 7 The Public Interest Oversight Board

Security Legislation Amendment 1 7 Keeping a register relating to critical infrastructure assets

The Monitoring Group 1 7 Oversee the activities of the PIOB

TPB 1 7 Tax Practitioners Board

Treasury Laws Amendment 1 7 Dealing with corporation, taxation, nancial institutions (whistleblower protection)

enlightened self-interest 1 7

Ideals of accounting professional 1 8 Ethics versus pro ts dilemma

con icts between self-interest, public interest and professional responsiblity

Four Es 1 8 Education, ethics, expertise, entrepreneurship

Profession 1 8 Traditional view of professionalism, Focus on intellectual or administrative skills, rather

than mechanical or physical actions

Social contract between a profess and 1 10 profession act as public interest, in exchange to get bene ts like self-regulation,
society autonomy, market control, and economic rewards

Self-Regulation 1 11 Independence, or autonomy, to self-regulate commonly extends to membership and

membership rules of profession

Co-Regulation 1 11 From external sources, like Law, government bodies, all kinds of boards and councils

Professional 1 12 Use knowledge and experience to make judgements of importance to the public
interest

Accounting Profession 1 12 Traditional view vs Market Control View

Enron/HIH/Worldcom Case 1 12 Market control view

1.8 a systematic body of theory and 1 13 IFAC member bodies, theory construction, education of technical/soft skills
knowledge

1.8 Attributes of a Profession 1 13 8 attributes

1.8 an extensive education process 1 14 all members must undertake ongoing professional development throughout their
careers

1.8 an ideal of service to the commnunity 1 14 wellbeing of society, pursuit of excellence, community service

1.8 a high degree of autonomy and 1 15 co-regulation in combination with external authorities (government body)
independence

Regulatory Structures of CPAA 1 16 Co-regulation and professional discipline

1.8 a code of ethics for members 1 17 consistent with the APESB code of Ethics

1.8 a distinctive ethos (道德意識）or culture 1 17 CPAA, our ethos has the word “integrity” as its foundation

1.8 application of professional judgement 1 17 technical skills + ethical value + social value

APESB 1 17

1.8 the existence of a government body 1 19 their roles, functions, like APESB, AASB, AUSSB

APESB 1 19

AASB 1 19

AUASB 1 19 Auditing and Assurance Standards Board, report to FRC

APESB roles 1 20 Focus on ethic standard and rules

Assurance Process 1 20 Standard setting, conformity with standards, practice reviews

Accounting Firm Regulation 1 21

APES 320 1 21 Apply to non-assurance company

ASQM 1 21 Apply to assurance company

ASA 220 1 22 Apply to assurance company

Professional Discipline 1 23 Investigation and disciplinary (懲戒性的) procedures

Adverse Event-professional discipline 1 23 Lead to disciplinary action

Penalties and Appeals-professional discipline 1 24 Cost and expense

Accountants’ key professional relationship 1 28 Factors in uence how an individual behave in their workplace

Accounting work environments 1 29 5 types

Public Practice Environment 1 29 CPA companies

Public practice roles 1 30 Audit, tax, FM, advising, insolvency and etc

Private or Business sector environment 1 31 Corporate nance team

Public sector environment 1 33 Government or regulatory bodies

Financial advice environment 1 34 Financial services, what is the risk, o ering advice on other ppl’s money

Not-for-pro t sector environment 1 34 NFPs

Social impact of accounting 1 35 Accounting information - decision making, impact on macro level and micro level

ASIC’s power 1 36 Reviews FS on annual basis and raise concerns, looks audit reports of public interest
entities

Credibility of profession 1 37 Earnings mgmt, creative accounting, poor audit quality, lack of independence,
nancial accounting distortions

Credibility-restoring 1 40 Improve nancial reporting, enhanced auditing standards, more e ective governance

Technical skills 1 41 TSKE

Soft skills 1 42 SSKE

Professional ethics 2 48 Act in the interest of those who rely on their services as well as public interest

Ethical responsibilities 2 48 4 points

Ethical Dilemmas (Kidder philosophy) 2 51 Truth/loyalty, individual/group, short-term/long-term, justice/mercy

Ethical issues/problem 2 52 Top3: misleading reporting, fraud/tax evasion, lack of transparency

Misconduct Reasons 2 52 Pressure from client/mgmt/board, con ict of interest, and others

Contemporary (當代的) Ethical Challenges 2 53 AI issue, relation to sustainability

Greenwashing 2 53 Misleading environmental claims to attract investment

Normative ethics 2 58 Framework: 1st judge right or wrong, 2nd solve it

Ethics of Character 2 58 A branch of Normative ethics, virtue ethics (德⾏倫理)

Teleological Theories 2 58 ⽬的論 consequences，egoism and utilitarianism

Deontological Theories 2 58 義務論 duty，Rights and Justice

Egoism 2 59 利⼰主義，enlightened self-interest

enlightened self-interest 1 59

Ethical egoism 2 60 Pursuit self-interest should be constrained by law and fair play

Restrict egoism 2 60 More acceptable, encourage competition, maximisation of utility and society interest

Utilitarianism 2 60 The greatest bene t or pleasure for the greatest number of people

Utilitarianism Limitations 2 61 4 limitations

Rights 2 62 Respect the rights of others

Deontological Theories 2 62

Legal and contractual rights 2 63 Enforced by legal system

Human rights 2 63 Limitations: little guidance on how to priorities among di erent rights

Justice 2 63 Fair and equal distribution of bene ts and burdens

Fairness 2 64 Acknowledge individual di erences and allocating resources to re ect the di erences

Virtue ethics 2 64 德⾏倫理，what people should be

Moral Agency 2 65 Who has the ability to make moral judgement and held accountable for the actions

Public Interest 2 68 IFAC de nition

APES 110 2 69 APESB code of ethics

Fundamental principles 2 70 Integrity, objectivity, professional competence and due care, con dentiality,
professional behaviour

Integrity (s.111) 2 70 Requires strength of character and courage to pursue one’s convictions

Objectivity (s.112) 2 70 Highest risk arising from RPT

Professional competence & due care (s.113) 2 71 1st obligation: attain and maintain professional knowledge and skills
2nd obligation: act diligently and in accordance with technical and professional
standard

Con dentiality (s.114) 2 72 Duty of con dentiality is relieved only when disclosure is required by law

Professional behaviour (s.115) 2 72 Act in public interest, good reputation of the profession

Conceptual Framework (s.120) 2 74 Relies on key principles for decision making

Acceptable level 2 75 The level can still meet fundamental principles

Threats-identifying (para.R120.6) 2 76

Intimidation 2 76 威脅,pressures, undue in uence

Advocacy 2 76 ⿎吹, promote a client’s position to the point that objectivity is compromised

Self-review 2 76 Evaluate himself’s previous judgement

Self-interest 2 76 Financial or other interest in uence the member’s judgement or behaviour

Familiarity 2 76 Due to long or close relationship

Evaluating threats (para.R120.7) 2 79

Acceptable level 2 79

Addressing threats (para.R120.10) 2 80 Eliminating circumstances, safeguard, ending the activity

Con ict of Interest (ss.210, 310) 2 81 Members in Business and Public Practice

Remuneration, Incentives, Fees and other 2 83 Creat a self-interest threat

forms of Payment (ss.240, 330)

APES 230 2 85 Provide nancial advise, self-interest threat to objectivity

Inducements, gifts and hospitality (ss.250, 2 85 Related to bribery and corruption, self-interest threat
340)

Non-compliance with Laws and regulations 2 87

(ss.260, 360)

NOCLAR 2 88 Understanding the matter, address it, further action is need or not, whether to disclose

Preparation and Presentation of Information 2 91 In business, reporting with integrity

(s.220)

Acting with su cient expertise (s.230) 2 92 Linked to professional competence and due care

Pressure to breach fundamental principles 2 92 In business

(s.270)

Professional appointments (s.320) 2 93 In public, consider before accepting a new client, communicate with previous auditor
fi
fi
ffi
fl
fi
fl
fi
fi
fi
fl
fi
fi
fi
ffi
fi
fi
ffi
ffi
fl
ff
fi
fl
fi
fi
fi
ff
fl
ff
fi
fi
ff
fl
fi
ff