Applying ethical principles Flashcards
(20 cards)
Fraud
The deliberate act of gaining an advantage by knowingly breaking the law
The difference between fraud form a mistake is intent.
There are three factors that must be present in order for an ordinary person to commit fraud
Bribery
Influencing someone to behave innapropriatly by means of money, goods or services.
Corruption
Deviation from prescribed behaviour, usually in conjunction with some other gain
Why are bribery and corruption problems?
Under the UK Bribery Act
If an. employee or associate of a commercial organisation bribes another person, the organisation. is liable unless they can showthat they had adequate procedures in place to prevent bribes being paid.
What is seen as adequate will depend on the bribery risks faced by the organisation. The UK guidance is based on 6 principles
Conflicts of interest occur in one of two ways
When one part is in a position to get a benefit from actions or decisions taken
When one partys actions or objectives are incompatible with those of another
The approach taken by organisations to resolve ethical conflicts will be influenced by a range of factors including
Responsible leadership
Public Value
Corporate code of ethics - typical features
Professional behaviour
Imposes an obligation on professional accoutnants to comply with relevant laws and regulations and avoid any conduct that may bring discredit to the profession
The public interest
The influence of the accoutnancy profession on business and society is potentially huge. It can be established simply by considering all the different involvements that accoutnants have (Man acciunts, Audit etc).
Advantages and disadvantages of a princoles based code of ethics
What are the fundamental ethical principles?
What are the safeguards against breach of compliance
What are the threats to independence and conflicts of interest? - AS IFS
Extortion
Foreign officials have been known to threaten companies with closure in exchange for payment
Grease money
Companies are sometime sunable to get services which theyre entitled to because of deliberate stalling by local officials.
