Professional Documents
Culture Documents
Ethic & Governance Notes
Ethic & Governance Notes
Ethic & Governance Notes
55
Construction Module 1 behaviour
Body of Code of
Systematic knowledge ethics APES110:
Research
Theory + Education
Practice + CPD Process Ethos & value, norms &
culture symbols
pp.27
Well-being of
society Attributes of
a
Pursuit of Professional
Ideal of service
excellence Professional Ability to diagnose
community Judgement + solve
service pp.55
Responsible for
Ability to Autonomy & Governing achieving attributes
regulate itself Independence Body
Maintain attributes
Module 1
FRC Government now co-regulates the accounting profession
Accounting standards are externally created
Backing by law
Non-compliance may have legal penalties
code of APES 110: ensures consistent behaviour
p.53 conduct
FRC monitors
Factors that Reduces the profession's autonomy but gives comfort to the
auditor
restore community
independence
creditability
Sarbanes-Oxley Act 20:0:2
Enhanced COSO 20:0:4
regulation
CLERP 9
International Many countries adopted same accounting & auditing
consistency standards
Module 2
Based on people SHOULD DO rather Ethical NORMATIVE Theory Page.100
than what they actually DO.
APES Code of conduct: Public Practice APES Code of conduct: Member in Business
225 NOCLAR pp.105 pp.136
210: Professional Appointment 310: Conflicts of interest
220: Conflicts of interest 320: Preparation & reporting of information
230: Second opinions 330: Acting with sufficient expertise
240: Fees and other types of remuneration 340: Financial Interests
250: Marketing professional services 350: Inducements
260: Gifts and hospitality 360: Responding to non-compliance with law
270: Custody of client assets & regulation
280: Objectivity – all services
pp.181
Module 3
Properly run Balance b/w overly restrictive decision making
entities unfettered risk taking
pp.173 pp.184
In the best Out-
ward Holding
Importance of interest of Instils confidence Strategy Formation
Lookin accountable
governance shareholders
g
Function of the
Optimal Board
performance Local Economies
International economies Inward Monitoring & Policy Making
Looking reviewing
Past & Present Focused Future Focused
Module 3
Share in profits
pp.217 1 Effective governance framework Basic Right Transfer/sell shares
2 Shareholder rights and equality to be inform New Shares
OECD
3 Institutional investors & stock markets to participate Changing Articles
Principles
4 Role of stakeholders in governance Merger
5 Disclosure and transparency Additional duties Date, Venue, Agenda
6 Board’s responsibilities
Module 4
pp.309
Criminal Case Focus on punishment > Civil Case Focus on Redress Anti-Competition Conduct (pp.315)
Beyond reasonable doubt Balance of probability Competition & Consumer ACT 2010
- Fines - Damages pp.318 - Agreement or understanding
- Jail sentences - Injunction & other court order Cartel Conduct - Between competitors
- Both Fine & jail - Pecuniary penalities Criteria: - Specifically prohibited or has an
*Agency of state Authoriy can only * Anyone can bring legal action impact on competition
prosecute pp.319
If criminal Action Price Fixing Output restrictions
Succeed Fails Bid-rigging Allocating customers, Supplier or territories
Cannot commence civil action bcz can commence
waste of resources. Case already civil action Unilateral restriction on supply (exclusive dealing) criteria pp.321
proofed.
Resale Price maintenance Criteria pp.322
Cartel Provision (Civil + Criminal) - Has supplier set min price? - enforced this minimum price?
- Individual $500,000
- Coporation $10 million
- Large Corporation $xxx million or (10% group turnover)
Module 4
Australia: Section 18, Consumer Law 2010 (Cwlth)
Misleading and Hong Kong: S. 7 Trade Descriptions Ordinance (Cap. 362) (1981)
deceptive conduct Malaysia: section 9, Consumer Protection Act (1999) Section 1042A
Japan: The Consumer Protection Basic Act (1968) Corporation ACT ↓ Not generall available
Prohibited Advertising False claims Insider Information Material Impact
pp.332 Business activity Prices / product features pp.345
Misleading Insider Trading Possess the info. Know it is insider info.
and Deceptive Questions Truthful impression? Not just the ‘truth’
S.18 Impact on Less informed people Use the Information Act on the information
- Identify issue Is it fair/deceitful? Subjective ‘puffery’ is OK Section 1043 ↑ Share (tip) the info.
- List the law (link) Corporation ACT
- Apply to case facts Cases Hornsby case (1978)
- clear conclusion Apple Case (2012)