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Navigating ethical challenges

Posted: Tuesday 29 September 2009 by Danielle Cohen
Replies : 2
Keywords: audiocast, CCAB, code of ethics, dilemmas, ethics, fraud, IFAC, queries

Just missed our live audiocast Q&A on ethics?

Listen to me (Danielle Cohen, Ethics Manager at CIMA) discussing ethics with Nina Barakzai, FCMA, who sits on UK and international ethics standards boards.

Listeners asked what to do if your manager is putting their signature on accounts you have prepared, how to handle a CEO omitting information when reporting to the board and whether to challenge owner/directors paying employees cash-in-hand.  

We also discussed new ethics case studies published by the CCAB.

Have you ever encountered an ethical dilemma? Want to get CIMAsphere's advice?

Now available!

Posted by Danielle Cohen on Tuesday 29 September 2009 15:50
The audiocast mentioned in the previous post is now available to access on-demand. Follow the link to register for access. http://mediazone.brighttalk.com/event/CIMA/0cdf61037d-3026-intro

Views on Audiocast Q & A

Posted by Goh Pei Loong on Thursday 01 October 2009 02:02

( A ) If manager putting signature on accounts that was prepared by someone else, few factors to consider:-

( 1 ) Internal Control - Does the manager has the authority to sign in terms of procedures?

( 2 ) The accounts is for internal use or external reporting, if for external reporting, then a qualified accountant in capacity of manager to sign is still presentable with true and fair view from an accountant's signing in manager capacity.

( B )(1) When a CEO has the opportunity to omit information to Board, it is likely to be non-financial information since accounting information would be completed if all reconciliations been performed. But with KPI(s) incorporating Non-Financial & Financial KPI, any omitted information would be non-material.

(B)(2) Owner or directors paid employees with cash in hand via company account would be allowable if there's petty cash control in place. But if owner or directors paid from their own pockets( cash in hand ), then they must have bills or claims from employees to pay on behalf of the company and subsequently make a claim from the company, taken it as advanced from director and later reimbursed back the payment made to employees.