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FINANCIAL REPORTING AND ETHICS10.6.2 Whistle Blowing Cases and SolutionsSome whistle – blowing cases are straight forward and capable of clearand once – and for all resolutions. The intricate ones which generatemoral dilemmas for the agents make ‘heavy’ demand on ethicallyacceptable analytical tools or theories of ‘utilitarianism’, ‘deotology’,and teleology ’and ‘ethical realism. The first three concepts have earlierbeen discussed in chapter 6.7. The fourth is now to be examined.According to Cottell and Perling(1990), ‘ethical realism’ can be utilizedalong with the previous tools identified. However, a number of factorshave to be present as pre – requisites. These include:(a)Ethical environment in which there are well – known andaccomplished intellectual personalities from whom wisdomcould be obtained. The moral agent or potential whistle – blowershould be a member of a well established professional body suchas the Institute of Chartered Accountants of Nigeria which couldprovide some support;(b)The personalities referred to in (a) above, should be able to musterpower and social respectability, sufficient to transmit acceptably,their developed ethical values to the community; and(c ) The moral agent would have had to share the values of theidentified intellectual figures.10.7 ANALYSIS OF THREATS TS AND SAFEGUARDSThreats Safeguards1. Self-interest (a) Stick to the conceptual framework approach to‘independence’ of mind and appearance (section 290.4to 290.7) of IFAC 2009 Code of Ethics.(b) Comply with the fundamental principles of objectivity,integrity, professional competence and due car,confidentiality and ethical professional behaviour.(c) Withdraw from the engagement team(d) Supervise procedures(e) Discuss with firm’s higher management(f) Terminate the relationship.2. Self-review As for (1a) to (if) above. Secondly, arrange for such servicesto be performed by an individual who is not a member ofthe audit team.3. Advocacy As for (1a) to (1f) above.4. Familiarity As for above.5. Intimidation As for above.202
ETHICAL THREATS AND SAFEGUARDSHowever, there are supplementary safeguards which can be distributed into‘firm-wide’ in the work environment, ‘engagement specific’ and those withinthe client’s systems and procedures. These may be discussed, as follows:(a)Firm-wide safeguards in the work environment include thefollowing:(i)(ii)(iii)(iv)(v)Leadership of the firm that stresses the importance of compliancewith the fundamental principles;Leadership of the firm that establishes the expectation thatmembers of an assurance team will act in the public;Policies and procedures to implement and monitor quality controlof engagements;Documented policies regarding the identification of threats tocompliance with the fundamental principle, the evaluation ofthe significance of these threats and the identification and theapplication of safeguards to eliminate or reduce the threats, otherthan those that are clearly insignificant, to an acceptable level;For firms that perform assurance engagements, documentedindependence* policies regarding the identification of threatsto independence, the evaluation of the significance of thesethreats and the evaluation and application of safeguards toeliminate or reduce the threats, other than those that are clearlyinsignificant, to and acceptable level;(vi)(vii)(viii)(ix)(x)(xi)Documented internal policies and procedures requiringcompliance with the fundamental principles;Policies and procedures that will enable the identification ofinterests or relationships between the firm or members ofengagement teams and clients;Policies and procedures to monitor and, if necessary, managethe reliance on revenue received from a single client;Using different partners and engagement teams with separatereporting lines for the provision of non- assurance services to anassurance client;Policies and procedures to prohibit individuals who are notmembers of an engagement team from inappropriatelyinfluencing the outcome of the engagement;Timely communication of a firm’s policies and procedures,including any changes to them, to all partners and professionalstaff, and appropriate training ad education functioning on suchpolicies and procedures;203
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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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7THE ENVIRONMENT: CORPORATE,PROFESS
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THE ENVIRONMENT: CORPORATE, PROFESS
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Page 173 and 174: PROFESSIONAL ETHICSobjectivity are
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Page 177 and 178: PROFESSIONAL ETHICSabout conflicts
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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 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
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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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