Chapter 1

1. What is ethics?
Ethics is Professionally accepted standards of personal and business behavior, values and
guiding principles.
2. Different between moral and ethics
Morals are personal philosophies on right and wrong which, through common backgrounds,
are often shared by large numbers of people.
Ethics is an agreed outcome that identifies right or wrong in particular circumstances by way
of a decision intended to be achieved in a good way or intending to achieve good outcomes.
3. Why should an accountant act in a business ethics manner
1. Influence on organisations
The influence of the accountancy profession on organisations is very significant. This
is due to the range of services that accountants can provide, including:
- Financial/management accounting
- Audit/consultancy
- Taxation advice
So that the accountants can help their company saving cost
2. Influence on society
Accountancy can be seen as a profession involved with social accountability
3. Influence on power and wealth distribution
+ Accountants have specialist skills and knowledge which can be used in the public
interest.
+ Society may have the objective of obtaining a more equal distribution of power and
wealth.
+ Given their abilities, accountants can probably advise on how that power and wealth
can be distributed.
If they don't act business ethic manner
- Firstly, they are likely to take risk for company. For example:
+ They have Lack of confident which leads to booking accounting entry wrongly, or
+ Lack of integrity related to chief accountant, staff which badly affected to Financial
statement or daily work
- Secondly, they do not work effectively
For example, in CBA, they are likely to cause whistle blowing problem, and they
repeat to higher level which refer to guidance ACCA organization
Chapter 2
1. Why is the influence of the accountancy profession on organization potentially
very significant
The influence of the accountancy profession on organisations is very significant. This
is due to the range of services that accountants can provide, including:
- Financial/management accounting
- Audit/consultancy
- Taxation advice
The role of an accountant is to provide services that represent the company's financial
information including data collecting, analyzing and reporting.
In fact, accounting is the language of finance which appears to be the cornerstone (the most
important part) of every company's operation.
Moreover, managers or directors will interpret this information to make rational and
appropriate decisions.
Accountants can also deal with third parties, such as vendors, customers and financial
institutions.
It can be seen clearly that accountants engage thoroughly (involved completely) in business
activities and therefore the impact of the accountancy profession is tremendous (huge)

Chapter 4
1. What are the difference between management and governance?
• Management is concerned with running business operation of a company >> routine
decisions and administrative work related to the daily operations of the organization
• Governance is about giving the lead to the company and monitoring and controlling
management decisions >> oversight and decision-making related to strategic direction,
financial planning, and by laws so as to ensure that the company achieves its intended
purpose and aims
2. Why does the large company usually deal with the agency cost problem?
The main reason for this problem is the conflict of interest between the ownership and
the control.
Shareholders solely (only) take high consideration into the company's wealth including
the values of shares, while directors mostly focus on running the company to reach
earning goals and maximize their self-interests.
The agency cost problem is major and much serious in large companies because the
roles of shareholders and directors are separated clearly and completely.
For example, directors want to invest in high-risk projects when shareholders are in
favor of safer ones
3. Distinguish agency theory and transaction theory
Transaction Cost Theory Agency theory
Focuses on individual transaction Focuses on individual agent
Manager may arrange transactions in an Looks at tendency directors to act in
opportunistic way their own best interests, pursuing salary
and status
Effective and efficient accomplishment Protection of ownership rights of
of transactions by firms shareholder

4. Difference between shareholder and investor

• An investor is a person who puts in his money in ventures in anticipation of profits.
• A shareholder is strictly an investor who trades in shares and stocks of companies
that are traded publicly.

Chapter 5

1. Present four report … what would the report do you think that is suitable to use for
modern company nowadays
- Cadbury report (1992)
The board required constant monitoring and assessment
Recommendations:
• There was a need to split the chairman/CEO role
• Necessary to ensure the chairman is an independent person at the time of
appointment.
- Higgs report (2003)
It is the role of NEDs to represent the needs of shareholders and operate as cautionary
voice of the board
Conclusions:
• At least half of the board should be made up of NEDs
• They should be remunerated appropriately
• They should act as a link between the board and shareholders to reduce agency
problem
• They should communicate regularly to important shareholders
- Tyson report (2003)
Developed from the Higgs report. It dealt with recruitment and development of NEDs
Conclusions:
• Diversity in background, skills and experience enhances board effectiveness
• Diversity improves communication and relationships with stakeholders and
shareholders
- Financial Reporting Council FRC (2010):
4 revisions of the Code
• Announced that the Code would in future be known as the UK CG Code
• Section A in 2008 code has been divided into two new sessions called “Leadership”
and “Effectiveness”.
Four new principles:
- The chairman’s responsibility for leading the board
- The non-executive directors’ role in challenging and developing strategy
- The need for the board to have balance of skills, experience, independence,
knowledge of the company and
- The need for all directors to have sufficient time to discharge their responsibilities
effectively
2. Analyze two model of board structure
1. Lower-tier: management board
• Responsible for day to day running of enterprises
• Generally only include executives
• The CEO co-ordinate activities
2. Upper-tier: supervisory (corporate) board
• Appoints, supervises, advises member of management board
• Strategic oversight of the organisation
• Include employee representatives, environment groups and other stakeholders’
management representatives.
• The chairman coordinates the work
• Member are elected by shareholders at AGM (annual general meeting)
• Receive information and reports from the management board
unitary and dual
Advantages
• Clear separation between those manage the company and those that own it
 • Implicit shareholder’s involvement in most cases, including the use of worker
representation
• Independence thought, discussion and decision since board meetings and operation
are separate
Problems
• Dilution power through stakeholder involvement
• Isolation of supervisory board through non-participation of management meeting
• Added bureaucracy and slow decision making
• Reliant upon an effective relationship between chairman and CEO
3. If the company is a new set-up one, which model structure can you suggest to apply

Lower-tier

Chapter 6
1. What is SOX? Key effects and negative points of SOX?
• SOX is a rule based approach;
• SOX is extremely detailed and carries the full force of the law;
• It is relevant to US companies
*Key effects of SOX:
+Personal liability of directors for mismanagement and criminal punishment
+Improved investor and public confidence in corporate US
+Improve internal control and external audits companies
+Improve governance through an audit committee.
*Negative points of SOX:
+Doubling of audit fee costs to organizations
+Onerous documentation and internal control costs
+Reduced flexibility and responsiveness of the companies
+Reduce risk taking and competitiveness of organizations

Chapter 7
1. Advantage and disadvantage of CSR
Advantage Disadvantage
- It helps to avoid the excessive exploitation of - Additional bureaucracy, with rising costs for
labour, bribery and corruption. observance.
- Companies would know what is expected of
them, thereby promoting a level playing field.
- Many aspects of CSR behaviour are good for
business (such as reputation, human resources,
branding and making it easier to locate in new
communities) and legislation It could help to
improve profitability, growth and sustainability.
- Some areas, such as downsizing, could help to
redress the balance between companies and their
employees.
- Costs of operation could rise above those
required for continued profitability and
sustainability.
- Critics already argue that the CSR of
companies is simply to make a profit, and
legislation would increase the vocalization of
these concerns
- Reporting criteria vary so much by company,
sector and country, and they are in constant
evolution.

- Rogue companies would find it more difficult to

compete through lower standards. The wider
community would benefit as companies reach out
to the key issue of underdevelopment around the
world.

2. Model of Mendelow-chart? Give example for each case

- High power, highly interested people (Manage Closely): Aim to fully engage these
people, making the greatest efforts to satisfy them.

Ex: CEO. The CEO is the leader of the project, the community is the place to evaluate
the project, the supplier is the provider of everything related to the project and they all
really care about whether the project is successful or not.
- High power, less interested people (Keep satisfied): Put enough work in with these
people to keep them satisfied, but not so much that they become bored with your
message.

Ex: They are customers. The customer has high power because they are the target of
the project, they are not really interested because if the project fails, they have many
choices in other companies.

- Low power, highly interested people (Keep informed): Adequately inform these
people, and talk to them to ensure that no major issues are arising. These audiences
can also help point out any areas that could be improved or have been overlooked.

Ex: They are employees. Employees have low power because they don't really
influence the strategy or resources of the project. They are very interested in the
success of the project because it affects their salaries

- Low power, less interested people (Monitor): Do not bore these stakeholder groups
with excessive communication, keep an eye to check if their levels of interest or power
change.

Ex: others like helpdesk, system admin

3. Why does we need to do CSR?

To begin with, recently, many countries have introduced policies relating to CSR and
companies are forced to comply.
Another reason is that being a socially responsible company can build its positive
image and differentiate its brand, which is considered as an effective marketing
strategy in the long term. Consumers wanted to buy products that provide high values
and benefits for humans and societies.
Moreover, CSR encourages employees to work hard and also boosts their morale
because it helps create an ethical and innovative working environment.
In conclusion, it is commonly believed that CSR is a key to the company’s long-term
success.  
4. Is CSR good or bad for company?

Maybe good or bad

Phụ thuộc công ty sử dụng CSR như thế nào  hiệu ứng ngược

Thời gian đầu, CSR làm cty tốn kém tiền bạc, do cty chi tiền làm từ thiện, làm việc tốt cho
môi trường,… take cost

Long term, lợi ích lâu dài, xây dựng hình ảnh, thương hiệu trong mắt người tiêu dùng, tăng
doanh thu

CSR ko bắt buộc

In my opinion, CSR is good for a company.
+ Being a socially responsible company can build a company’s image and its brand.
+ Social responsibility empowers employees to leverage the corporate resources at
their disposal to do good.
+ Formal corporate social responsibility programs can boost employee morale and lead
to greater productivity in the workforce.