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FINANCIAL REPORTING AND ETHICSdeal with deviations outside permitted tolerances.” From the definitionstated above, the role of ‘Quality Control’ is to make sure that standardsof quality are set, so that adverse deviations may be spotlighted forcorrective measures.The ‘quality control’ requirements are clearly spelt out in the Code ofEthics for professional Accountants released by the InternationalFederation of Accountants (IFAC) and Rules of Professional Conduct forMembers issued by The Institute of Chartered Accountants of Nigeria.8.3.2 Peer eer ReviewA peer review programme is dedicated to enhancing the quality ofauditing, accounting and attestation services performed by professionalaccountants in public service who are members of The Institute ofChartered Accountants of Nigeria and by that fact, of InternationalFederation of Accountants. Peer review activities in Nigeria are handledby the Professional Practice Monitoring Committee on behalf of theInstitute.8.3.3 Peer Review ActivitiesPeer reviews turn out reports which provide insight into the individualfirm’s implementation of the stated quality standards set, in the courseof auditing, accounting and attestation services contracted and executed.Peer review exercises increase the efficiency and effectiveness of firmsin public service and boost the level of trust in the profession.8.4 CONFLICTS OF INTEREST IN CORPORATE AND PROFESSIONALENVIRONMENTSAn expert has defined a ‘threat’ as “the risk that relationships or circumstancescould compromise a member’s compliance with the rules and regulations oflaid down ethical standards of behaviour.” Safeguards are “actions or othermeasures designed to eliminate threats or reduce them to acceptable levels.”What, then, constitutes ‘acceptable levels?’ These can be taken as the pointswhere a reasonable and informed independent party would be disposed toconclude that, having regards to all the underlying facts and circumstances,compliance with the ethical Code of Conduct is not compromised.Section 220 of Code of Ethics for Professional Accountants (2009) which TheInstitute of Chartered Accountants of Nigeria has adopted for its members tocomply with, has provisions for the management of conflicts of interest whichinclude the following:(a) Sub-section 220.1A professional accountant who is in public practice is obliged to exercisedue diligence and care to identify the circumstances that could bring176
PROFESSIONAL ETHICSabout conflicts of interest, resulting in threats to compliance with thefundamental principles. By way of example, objectivity may bethreatened when a member of the Institute in public practice competes“directly with a client or has a joint venture or similar arrangementwith a major competitor of a client.”(b) Sub-section 220.2A professional accountant in public practice shall weigh the significanceof any threats and, consequently, apply necessary safeguards toeliminate or reduce them to a level considered acceptable. Before heaccepts or continues a client relationship or any specific engagement,he shall evaluate the significance of any threats which are creations ofbusiness interests or relationships with a third party or the client.(c) Sub-section 220.3Depending on the occasions which give rise to the conflicts of interest,The Code (2009) recommends the application of one of the followingsafeguards:(i)(ii)(iii)Notifying the client of the firm’s business interest or activitieswhich may bring about a conflict of interest and obtainingconsent to act in such situations;Notifying all known parties that the professional accountant inpublic practice is acting for two or more parties in respect of amatter in which their interests are in conflict. The professionalaccountant will obtain their consent to so act; andNotifying the client that the professional accountant in publicpractice is not acting exclusively for any one client in the provisionof the service proposed; for example, in a particular sector of themarket or with reference to a specific service, and obtaining theirconsent to so act.(d) Sub-section 220.4It is the obligation of the professional accountant to apply one or moreof the following additional safeguards:(i)(ii)(iii)(iv)(v)Using separate engagement teams;Instituting procedures to prevent access to information such asstrict physical separation of such teams, confidentiality andsecurity of data filing;Issuing clear guidelines for members of the engagement teamon matters of security and confidentiality;Using confidentiality agreements executed by the firm’s partnersand employees; andReviewing regularly the application of safeguards by a seniorperson who is detached from the clients’ engagements.177
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FINANCIAL REPORTING AND ETHICS1.3.3
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ACCOUNTING AND REPORTING POLICIESsu
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ACCOUNTING AND REPORTING POLICIES(j
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ACCOUNTING AND REPORTING POLICIES(i
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ACCOUNTING AND REPORTING POLICIES2.
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3AMALGAMATION, ABSORPTION ANDRECONS
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AMALGAMATION, ABSORPTION AND RECONS
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4ANALYSIS AND INTERPRETATION TION O
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ANALYSIS AND INTERPRETATION OF FINA
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5ACCOUNTING STANDARDS5.0 LEARNING O
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ACCOUNTING STANDARDS(i)(ii)(iii)(iv
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ACCOUNTING STANDARDSThere is no SAS
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ACCOUNTING STANDARDS5.2.4 Borrowing
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ACCOUNTING STANDARDS(iii)Certain pe
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ACCOUNTING STANDARDSby venture capi
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ACCOUNTING STANDARDSIFRS 7 Financia
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ACCOUNTING STANDARDSactivity, non-c
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ACCOUNTING STANDARDSin the year inc
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ACCOUNTING STANDARDS(v)(vi)(vii)whe
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ACCOUNTING STANDARDS(v)Actions requ
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ACCOUNTING STANDARDSAccounting stud
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6ETHICAL FRAMEWORK, CONCEPTSAND VAL
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ETHICAL FRAMEWORK, CONCEPTS AND VAL
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Page 183 and 184: 9DECISION MAKING IN ETHICS9. 0 LEAR
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Page 191 and 192: 10ETHICAL THREATS TS AND SAFEGUARDS
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Page 207 and 208: 11CORPORATE GOVERNANCE11.0 LEARNING
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Page 225 and 226: CORPORATE GOVERNANCE(a)(b)Greenbury
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CORPORATE GOVERNANCE11.9.2 Boards d
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CORPORATE GOVERNANCErelationship wi
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CORPORATE GOVERNANCE(e)(f)(g)(h)(i)
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CORPORATE GOVERNANCE(vi)Inquisitive
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CORPORATE GOVERNANCE(e)ConsultancyA
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CORPORATE GOVERNANCEThe incoming au
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CORPORATE GOVERNANCEIn summary, acc
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CORPORATE GOVERNANCEAccording to Th
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CORPORATE GOVERNANCE3. A body corpo
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12SOCIAL AND ENVIRONMENTALISSUES IN
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SOCIAL AND ENVIRONMENTAL ISSUES IN
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APPENDIX ISUGGESTED SOLUTIONS TO RE
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SUGGESTED SOLUTIONS TO REVISION QUE
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SUGGESTED SOLUTIONS TO REVISION QUE
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APPENDIX IICOMPREHENSIVE QUESTIONS
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COMPREHENSIVE QUESTIONS AND SUGGEST
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APPENDIX IIICASE STUDY 1Karsashi, a
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CASE STUDIES(iii)(iv)The floor sale
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CASE STUDIESShare price and dividen
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CASE STUDIESSUGGESTED SOLUTION(A) A
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CASE STUDY 3The following informati
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CASE STUDIESCASE STUDY 4Ologobojo i
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APPENDIX IVTable 1:SUMMARY OF INTER
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SUMMARY OF INTERNATIONAL ACCOUNTING
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APPENDIX VGLOSSARY OF TERMSAbsorpti
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GLOSSARY OF TERMSEthical Objectivis
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APPENDIX VIBIBLIOGRAPHYChambers Ham
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APPENDIX VIISTUDY AND EXAMINATION T
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STUDY AND EXAMINATION TECHNIQUES7.3
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INDEXAAbsorption, 17, 19, 39, 40, 4
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INDEXProfessional Behaviour, 136, 1
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