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FINANCIAL REPORTING AND ETHICSAccording to The Code (IFAC, 2009), it is the threat that aprofessional accountant will not appropriately evaluate theresults of a previous judgment made or service performed bythe professional accountant, or by another individual within theprofessional accountant’s firm or employing organisation, onwhich the accountant will rely when forming a judgment as partof providing current services.(c)(d)(e)The advocacy threatThis is an apparent threat to the auditor’s objectivity, if hebecomes an advocate on behalf of an assurance client inlitigation or disputes with third parties.The familiarity or trust threatA threat that the auditor may become over-influenced by thepersonality and qualities of the directors and management, andconsequently too sympathetic to their interest. It could also arisewhere a member of the engagement team has a close orimmediate family relationship with a director or officer of theclient.The intimidation threatIt is the possibility that the auditor is being threatened withdismissal or replacement in relation to a client engagement. Itcould come from a dominating personality, or by other pressures,actual or feared, by a director or manager of the client or bysome other party.It is a threat that a professional accountant will be deterred fromacting objectively because of actual or perceived pressure.10.5.2 Safeguards to Independence / Introduction of Safeguards atProfessional and Firm LevelsThere are many safeguards and procedures to offset the different typesof threats highlighted above. Auditors are admonished to alwaysconsider the utilization of safeguards and measures which may reduceor negate threats. They should be prepared to demonstrate that inrelation to each specified threat, they have exhausted the availabilityand effectiveness of the safeguards and procedures, and are satisfiedthat their objectivity in carrying out the assignment will be properlypreserved. The following may, therefore, be discussed:198
ETHICAL THREATS AND SAFEGUARDS(a)Firm-wide safeguards in the work environment orindividual firmsThe various safeguards and approaches might include thepractice firm’s environment in which the professionals operate,in order to offset any threat to objectivity. Admittedly, it is notpossible to compile an exhaustive list of counter-measuresagainst threats. Nonetheless, auditors should, where possible,develop the following characteristics in their practice firms:(i)(ii)(iii)(iv)(v)According to ICAN’s “Rules of Professional Conduct forMembers,” chartered accountants are obliged from thecommencement of their training contracts to behave withintegrity in all their professional and business relationshipsand to strive for objectivity in their business and professionaljudgements. These factors rank highly in the qualitieswhich the chartered accountants have to display prior toadmission.Engagement partners should have sufficient regard fortheir career and reputation to be encouraged towardsobjectivity and to the effective use of safeguards.Within any practice firm, there should be strong peerpressure towards integrity. Reliance on one another’sintegrity should be the essential force which permitspartners to entrust their public reputation and personalliability to each other.Firms should set great store for their reputation forobjectivity and impartiality. It is the foundation for theirability to practise and gain work over the medium andlong term. They should not permit any firm’s member torisk it for short term benefit or gain.Firms of all sizes should have well established stronginternal procedures and controls over the work ofindividual principals, to ensure that difficult and sensitivejudgments are reinforced by the collective views of otherprincipals, thereby also reducing the possibility oflitigation.(b)Safeguards and / or Sanctions Built into the Structure ofthe Profession Itself / Legislation or RegulationThese might include:(i)The long standard code of ethics of the profession of whichthe “Rules of Professional Conduct for Members” is part.199
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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 147 and 148: 7THE ENVIRONMENT: CORPORATE,PROFESS
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Page 173 and 174: PROFESSIONAL ETHICSobjectivity are
Page 175 and 176: PROFESSIONAL ETHICS(c)(d)The type o
Page 177 and 178: PROFESSIONAL ETHICSabout conflicts
Page 179 and 180: PROFESSIONAL ETHICS(d)(e)Confidenti
Page 181 and 182: PROFESSIONAL ETHICSA. III onlyB. II
Page 183 and 184: 9DECISION MAKING IN ETHICS9. 0 LEAR
Page 185 and 186: DECISION MAKING IN ETHICS9.2 A FRAM
Page 187 and 188: ETHICAL THREATS AND SAFEGUARDS(d)We
Page 189 and 190: DECISION MAKING IN ETHICS4. A perso
Page 191 and 192: 10ETHICAL THREATS TS AND SAFEGUARDS
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Page 195 and 196: ETHICAL THREATS AND SAFEGUARDSto th
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Page 201 and 202: ETHICAL THREATS AND SAFEGUARDSimmin
Page 203 and 204: ETHICAL THREATS AND SAFEGUARDSHowev
Page 205 and 206: ETHICAL THREATS AND SAFEGUARDS(iii)
Page 207 and 208: 11CORPORATE GOVERNANCE11.0 LEARNING
Page 209 and 210: CORPORATE GOVERNANCE11.3.1 Nature(a
Page 211 and 212: CORPORATE GOVERNANCEThe company sho
Page 213 and 214: CORPORATE GOVERNANCEtrust, possible
Page 215 and 216: CORPORATE GOVERNANCEAn agent has im
Page 217 and 218: CORPORATE GOVERNANCE(a)(b)(c)(d)(e)
Page 219 and 220: CORPORATE GOVERNANCE11.6.1 The law
Page 221 and 222: CORPORATE GOVERNANCEILLUSTRAUSTRATI
Page 223 and 224: CORPORATE GOVERNANCEimitated. They
Page 225 and 226: CORPORATE GOVERNANCE(a)(b)Greenbury
Page 227 and 228: CORPORATE GOVERNANCE11.9.2 Boards d
Page 229 and 230: CORPORATE GOVERNANCErelationship wi
Page 231 and 232: CORPORATE GOVERNANCE(e)(f)(g)(h)(i)
Page 233 and 234: CORPORATE GOVERNANCE(vi)Inquisitive
Page 235 and 236: CORPORATE GOVERNANCE(e)ConsultancyA
Page 237 and 238: CORPORATE GOVERNANCEThe incoming au
Page 239 and 240: CORPORATE GOVERNANCEIn summary, acc
Page 241 and 242: CORPORATE GOVERNANCEAccording to Th
Page 243 and 244: CORPORATE GOVERNANCE3. A body corpo
Page 245 and 246: 12SOCIAL AND ENVIRONMENTALISSUES IN
Page 247 and 248: SOCIAL AND ENVIRONMENTAL ISSUES 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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