Financial Reporting and Ethics - The Institute of Chartered ...

FINANCIAL REPORTING AND ETHICSexperience, case studies tend to involve full description of practical or realsituations or events which the investigator ponders on with analytical powerand understanding. Development and using case studies to manageprofessional responsibilities make heavy demand on attributes which includethe following:(a)(b)(c)Ability to demonstrate flexibility. There is more than one way of lookingat an issue. Case studies or investigations should be capable of manysolutions or approaches. The investigators or researchers should keeptheir minds open;The professional accountant who is conducting the enquiry should beable to identify the problem or problems underlying the investigation,to which he may apply his skills and knowledge, for example, drawingon ‘SWOT’ analysis of the strengths, weakness, opportunities and threatsof the organisation or personality under focus; andThere should be clarity of expression in the language used to communicaterecommendations.12.12 SUMMARY AND CONCLUSIONSThis chapter discusses what a corporation is, its interests and professionalresponsibilities. It also examines the concept of accountability, the role ofprofessional accountants in globalisation and the components of financialstatements of quoted entities. It concludes by examining social and environmentalissues, investigative reports/professionalism and the management ofprofessional responsibilities through case studies.Refer to Comprehensive Questions and Suggested Solutions in Appendix II,page 269.12.13 REVISION QUESTIONS12.13.1 MULTIPLE-TIPLE-CHOICE QUESTIONS1. Corporate social responsibilityI. operates as a self-regulating mechanism.II. is a built-in procedure.III. ensures compliance with law and norms.A. I, II and IIIB. II and IIIC. I and IID. I onlyE. II only2. A company assumes responsibility for the impact of its activities on theI. environment.II. other companies.III. Public.IV. Consumers.A. I, II and III260