Scribd
Upload
3 views

Assignment 2- Questions

The document outlines two assignment questions for a course on Ethics and Corporate Governance at Nelson Mandela University. Question 1 involves defining professional ethics and identifying characteristics of a profession and functions of a professional body. Question 2 presents two scenarios involving ethical dilemmas faced by chartered accountants and requires an analysis of fundamental principles and threats as per the SAICA Code of Professional Conduct.

Uploaded by

Roletta Van Staden
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
3 views

Assignment 2- Questions

The document outlines two assignment questions for a course on Ethics and Corporate Governance at Nelson Mandela University. Question 1 involves defining professional ethics and identifying characteristics of a profession and functions of a professional body. Question 2 presents two scenarios involving ethical dilemmas faced by chartered accountants and requires an analysis of fundamental principles and threats as per the SAICA Code of Professional Conduct.

Uploaded by

Roletta Van Staden
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

REV201

Assignment 2 Questions

QUESTION 1 (Test 2 - 2023) 10 MARKS: 13 MINUTES

You are a student at Nelson Mandela University (NMU), staying at an on-campus residence.
Your roommate is also doing Ethics and Corporate Governance this year, so you usually study
together for tests. While you were studying for an upcoming test, you realized that you did
not pay much attention on Chapter 12 - Professional Ethics. Your friend suggested that he/she
asks you a couple of questions so that you can determine whether you need to study the
content in detail or not. Your friend asked you the following questions:

a) How would you define professional ethics? (1)

b) State the five characteristics of a profession. (5)

c) State the four functions of a professional body. (4)

YOU ARE REQUIRED TO: respond to your friend’s questions. (10)

QUESTION 2 11 MARKS: 14 MINUTES

Chartered accountants are frequently faced with ethical situations which may threaten their
compliance with the fundamental principles of professional conduct.

The SAICA Code of Professional Conduct provides chartered accountants with guidance on a
few ethical issues, identifying the fundamental principles as well as potential threats to
compliance therewith, which chartered accountants may face. Safeguards to address the
threats are also discussed.

Consider the following unrelated situations:

Scenario 1

Ms Lungi Yalo CA (SA) is the Corporate Social Responsibility director (CSR director) of Crystal
Blue (Pty) Ltd. A CSR director approves charity outreach projects on behalf of the company.
Ms Lungi’s sister is the sole proprietor of Siyakhathala Foundation, a non-profit organization,
which is an orphanage home. The company issued applications for non-profit organizations
to apply for a charity outreach project. Ms Lungi ignored all the other applications and
approved a project for Siyakhathala Foundation.
Scenario 2

Max Brown, CA (SA) and accountant of Mega Bucks (Pty) Ltd, a manufacturing company. The
financial director of the company asked Max to understate the allowance for doubtful debt
provision for the year just to increase the profits. Max is afraid of losing his job, so we followed
the instructions given by the financial director.

YOU ARE REQUIRED TO:

a) Explain the following fundamental principles and threats: (6)


i. Professional competence and due care
ii. Professional behaviour
iii. Familiarity threat
iv. Intimidation threat

b) Discuss the concerns in relation to the conduct of the professional accountants in the
above scenarios, in terms of the SAICA Code of Professional Conduct. Include the
following in your discussion:
i. Stating the fundamental ethical principle(s) affected.
ii. Stating the threat(s) created. (5)

You might also like