The paper 'Ethics and Governance' is a great example of a Finance and Accounting Assignment. One of the principles in the public interest. Members of the accounting bodies at all times should safeguard the interest of the employees and clients. The members should safeguard the clients so long as they are not conflicting with the loyalties and duties owed to the community laws. The member should accept their responsibility to the public. Members will be responsible to the employers, employees, credit grantors, governments, and investors. All these people will depend on the members for them to get financial objectives and advice when they want to acquire loans or venture into business.
The members will also increase community confidence by recommending sound and high-quality financial advice. Integrity Another principle is integrity; members of the accounting bodies should be sincere, honest, and straightforward when approaching their professional work. This includes their duties of being accountable and responsible, reliable, and committed in all their professional relationships. Objectivity Objectivity is another important principle to be observed by the members of the accounting bodies. The members should act fairly and not allow bias, conflict of interest, and prejudice to override their objectivity (Moscardo 2013, p.
92). The members should maintain an impartial attitude and provide recommended solutions to the client’ s situations when providing financial advice. The members should be able to demonstrate their objectivity in various circumstances as they are serving in different capacities. If there is any conflict, the member should disclose it to the client with a satisfying explanation of the circumstances adopted to solve the conflict. Confidentiality Members should observe the confidentiality of the information they obtained from the clients.
The information should be used on matters of professional duties for clients only. The member should reveal the information relating to the client when there is a professional or legal duty. Professional Independence The member should maintain the principle of professional independence when providing financial advice to the clients. The members should provide their opinions without being influenced by ether the stakeholders or anybody else in the organization. The third-party will be well informed of any lack of professional independence when the member avoids some circumstances and facts relating to the decisions made in the process of financial advice.
The member should be in a position to disclose any act that is a threat to independence. This will make the clients prove that the member is free of any lack of independence in the process of providing advice. Threats to the fundamental principles of the Code of Ethics These are the factors, which hinder the members from adhering to the ethical principles of accounting bodies in Australia. Self-interest threat: This is whereby the member influenced by other people who would like the member’ s judgment to fit their interest.
For example, the stakeholders in an organization can influence the member of the accounting department to manipulate the financial statement to fit their interests. This will have changed or influenced the interest of the member (Manfredi & Nappo 2013, p. 183).
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