ACCG100 Accounting in Society

1. Explain what it means to behave ethically. Have you encounter any ethical dilemmas in your life (e.g.
in the workplace, etc.)? What did you do in the situation?

To behave ethically is to abide by standards depicted by society. For example, a company will be
conscious of the environment and their employees because it seen as having good values. No I haven’t
personally had any ethical dilemmas myself.

2. Based on the article, identify the ethical issues and discuss why the activities are alleged to be
inappropriate.

They only paid for these entertainment packages if the government officials could help them
economically. This is unethical because they should’ve given these packages to all government officials
that went. Its seen as selfish.

3. With reference to APES 110 Code of Ethics for Professional Accountants, discuss the ethical issues
that may arise in each of these cases.

CASE 1
You are financial director of a large multinational organisation and have been made aware of
information about a takeover bid to acquire a competitor’s firm. A family friend is considering selling
shares in this rival organisation and has asked you, as an expert in the industry, for advice on this matter.
What would you do? Which principles are affected and how?

By telling your friend about the takeover bid, you are releasing inside knowledge and can be fined
with insider trade.

CASE 2
You are a certified public accountant who has recently joined a small company that processes food. The
company is effectively run by one director. The other directors are non‐executive and all have close
personal relationships. As a key member of the finance team you have discovered that some employees
are being paid cash in hand and not via the formal payroll. You also have suspicions that some of these
people are being employed illegally and you have no records of their formal employment documents or
contracts. What would you do? Which principles are affected and how?

The employees must be put on the books as it effects the profit at the end of the year. All directors must be
informed and asked if they had any knowledge of this. It should also be reported to authorities as it is tax
evasion by the employees.

Week 3 tutorial questions