COLLEGE OF BUSINESS, HOSPITALITY AND TOURISM STUDIES

SCHOOL OF ACCOUNTING & LAW

Department of Accounting

ACC811 Ethics & Governance

ALTERNATIVE ASSESSMENTS FOR FINAL EXAMINATION

SEMESTER 1, 2021

ASSESSMENT 1 - CASE STUDIES- 20%

Total Marks = 40

This alternative assessment contributes 20% of the 50% of the total assessment of this unit.

Instructions:

1. To be completed individually.
2. No plagiarism will be allowed; students must maintain integrity at all times.
3. Write your Student Name & ID Number on each Assessment component that you submit.
4. This is an open book assessment. You are permitted to access any books, notes or other forms of
written or electronic materials.
5. The assessment components must be submitted online via Moodle Dropbox or emailed to the
respective Lecturer, whichever is convenient.
CASE 1: 10 marks

In late 2010, 29 miners died when they were trapped 1.5 kilometers underground by a methane
explosion inside a coal mine in Pike River, New Zealand.

A Report into the incident stated:

The lessons from the Pike River tragedy must not be forgotten … That would be the best
way to show respect for the 29 men who never returned home on 19 November 2010, and
for their loved ones who continue to suffer …

Protecting the health and safety of workers is not a peripheral business activity. It is part
and parcel of an organization’s functions and should be embedded in an organization’s
strategies, policies and operations.

This requires effective corporate governance. Governance failures have contributed to

many tragedies, including Pike River …

The board and directors are best placed to ensure that a company effectively managers
health and safety. They should provide the necessary leadership and are responsible for the
major decisions that most influence health and safety: the strategic decision, securing and
allocating resources and ensuring the company has appropriate people, systems and
equipment.

Source: Royal Commission on the Pike River Coal Mine Tragedy 2012, Report of the Royal Commission
on the Pike River Coal Mine Tragedy, vol. 1, p. 3; part 2, p. 324, accessed October 2016.

Parts:

1. The above scenario demonstrates poor standards of behavior visible in boards of even
apparently reputable corporations operating in countries reputedly with the best legal
systems. Discuss 2 ethical obligations of employer governance towards its employees.
(4 marks)

2. Employers who do not meet needs of their employees appropriately, and who bypass or
ignore fundamental principles and/or laws, have seen to suffer serious adverse
consequences through bad publicity and the loss of reputation. Explain why those charged
with corporate governance need to be mindful of these factors? (4 marks)

3. Discuss 1 ethical failure that may have led to the problems in the first place. (2 marks)
CASE 2: 10 marks

You are one of three partners in a firm of accountants. Five years ago the firm was appointed as
external accountants to a young, successful and fast-growing company, engaged to prepare year
end accounts and tax returns. The business had started trading with a handful of employees but
now has a workforce of 200, while still remaining below the size of company requiring a statutory
audit.
Due to your close relationship with the directors of the company (who are its owners) and several
of its staff, you become aware that staff purchases of goods manufactured by the company are
authorised by production managers, and then processed outside the accounting system. The
proceeds from these sales are used to fund the firm’s Christmas party.

Parts:

1. Discuss the improper accounting for sales in the scenario. (2 marks)

2. What are some of the ethical questions that you will ask to yourself in light of the
fundamental principles of professional code of conduct for accountants? (8 marks)

CASE 3: 10 marks

You are a trainee accountant in your second year of training within a small practice. A more senior
trainee has been on sick leave, and you are due to go on study leave. You have been told by your
manager that, before you go on leave, you must complete some complicated reconciliation work.
The deadline suggested appears unrealistic, given the complexity of the work.
You feel that you are not sufficiently experienced to complete the work alone. You would need
additional supervision to complete it to the required standard, and your manager appears unable to
offer the necessary support. If you try to complete the work within the proposed timeframe but fail
to meet the expected quality, you could face repercussions on your return from study leave. You
feel slightly intimidated by your manager, and also feel pressure to do what you can for the practice
in these challenging times.

Parts:

1. Discuss 3 key fundamental principles affecting you in this scenario. (5 marks)

2. Identify the relevant facts in the scenario and evaluate on the possible course of action that
you will take. (5 marks)
CASE 4: 10 marks

Richard Burrows, Chairman of British American Tobacco (BAT), welcomed their various
stakeholders in a detailed Annual Report of 2015. The chairman’s message section to stakeholders
outlines the following statements:

… For us, sustainability is not a choice or something that is nice to have, it is crucial to
securing the future of our business by creating shared value for consumers, our customers
and our shareholders. That is why, in addition to our continued investment in our traditional
brands, our high growth markets, our systems and our people, we developed our
sustainability Agenda, focusing on tobacco harm reduction, sustainable agriculture and
farmer livelihoods, and corporate behavior … (Statement 1)

… I am pleased to report that we maintain our strong record on Board diversity, both in
terms of gender and in the wide range of relevant backgrounds and nationalities represented
among our Directors … (Statement 2)

Source: Annual Report, 2015 p. 5

Parts:

1. With reference to Statement 1, comment on why corporate bodies such as BAT are required
to have sustainability as one of their fundamental goals in modern era of doing business
and the relevance of sustainability for developing country companies such as in Fiji.
(5 marks)

2. With reference to Statement 2, evaluate on the need for having gender equality and
diversity aimed at senior management levels in corporate entities. (5 marks)

TOTAL = 40 Marks