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Anton Colella, Chief Executive, The Institute of Chartered Accountants of Scotland (ICAS)
Ethics Seminar at CICPA - Overview Introduction Ethics for Professional Accountants Case Studies Final Discussion and Closing Comments
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About ICAS
We have the first Royal Charter given to a UK accountancy body in 1854 High profile members in the fields of accountancy and business Approximately 18,000 members Excellent reputation worldwide
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What is ethics?
Ethics is concerned with how an attitude, action or decision is determined as right or wrong or good or evil (Donaldson, 1988).
All accountants are facing similar decisions IFAC code applies globally and is at the heart of ethics
Local factors come into play in application of ethics
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Impact of dilemmas
Some issues may be trivial but there may still be a right and wrong course of action.
Others may lead to severe consequences as various accounting scandals worldwide can testify.
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It was like riding a tiger, not knowing when to get off without being eaten. Mr B Ramalinga Raju, Chairman and Chief Executive
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Case study
You are a financial controller in a medium sized company. The financial director asks you to follow an accounting policy for certain types of transactions which is not in accordance with the accounting requirements. In year 1 these transactions are immaterial. What do you do?
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ICAS Policy
ICAS policy is for there to be one Code of Ethics IFAC Code of Ethics.
Does any country really need separate ethical standards?
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ICAS Research
Taking Ethics to Heart (2006) (research based recommendations on embedding ethics more firmly in business and the profession) What do you do now? (2008) (ethical case studies based on members in practice) Shades of Grey (2009) (more ethical case studies based on members in business) Available from ICAS website
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Closing remarks
Courage is the additional key principle/value. Isolation - can be a problem for members in business. Less of a problem for members in larger accountancy practices. However, to do the right thing applies to all accountants.
Closing remarks
A quote from an old article on ethical business reads, making money by being immoral is short sighted because youll soon be found out. Making money by being moral will mean youll succeed long term. We have been living in an age of short sightedness, we havent been looking far enough ahead to make the right decisions.
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Closing remarks
Only by being ethical can be we make the right decisions.
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Thank you for inviting us to CICPA to give this presentation and for listening
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