Download - Ethic education group assignment
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GROUP 7
TASK: DISCUSS ETHIC EDUCATION AND THE MAJOR FACTORS AFFECTING ETHICAL CHOICES OF ACCOUNTANTS IN ZAMBIA
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Dawn of the 21st century
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The worst was still however to come. This was the global financial crisis 0f 2008. Trillions of dollars lost and companies close
collapse. The big question now is “WHAT DO ALL
THESE EVENTS HAVE IN COME?”
THE HUGE OF INVOLVEMENT OF ACCOUNTING PROFESSIONALS
Dawn of the 21st century continued……….
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Credibility Lost
The public lost confidence in accountants Professional accounting bodies strategize on how to restore
the confidence Rules and Regulations The profession was still under a lot of scrutiny Quest for a solution waged on
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ETHICSAND ITS CORE VALUES!!
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INTRODUCTIONDEFINITION OF ETHICS
The word ethics is derived from the Greek word “Ethos” which means character and a Latin word “moras” which means customs taken together these two words define how individuals choose to interact with one another
PURPOSE OF THIS DISCUSSION
Discuss Ethic education before and after the financial crisis The importance Its limitations Factors affecting ethical choices of accountants in Zambia
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149418881907HISTORY OF ETHICS EDUCATION
1494. The father of accounting Luca Pacioli
2000’s1888. The American Association of Public
Accountants(AAPA) was created to develop professionalism.
1907. The AAPA changed its name to American institute of Certified Accountants (AICA) and delivered divisions of ethical principles.
These are;1. Independence 2. Objectivity3. Integrity4. Competence5. Professionalism
ACCOUNTING SCANDALS
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Sarbanes and Oxley Act Of 2002
Passed by the American congress to protect the investors from fraudulent financial activities of the corporation
The act was mandated strictly to improve financial disclosures and prevent fraud
Aim was to restore investor confidence
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ETHIC EDUCATION: POST GLOBAL FINANCIAL CRISIS
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DYNAMICS OF BUSINESS
“THE BUSINESS WORLD WORKS LIKE A JIGSAW PUZZLE”UNFORTUNATELY… ONE CRITICAL PIECE WAS MISSING. This was ethics. Replaced instead with corporate greed
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COMPANY PROFITS: PURE ECONOMICS?
OR PINOCIONOMICS
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DODD FRANK ACT
INTERNATIONAL ASSOCIATION OF ETHIC EDUCATION (IAEE)
RISE OF ISLAMIC FINANCE
EDUCATION ACT AMENDMENT(S)
ETHICS AND ETHICS EDUCATION REFORMS
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Ethics boosts shareholders confidence
Due to all the accounting scandals, accountants have long been thought of as the black sheep of the business world
But with ethicly driven efforts, such as good business practice, public relations and corporate social responsibility, this image can be forgotten and be replaced with a return in shareholder confidence
ETHICS IMPACT ON SHAREHOLDERS
A lack of ethics pierces investor confidence
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Without ethics education
ORGANISATIONAL INFLUENCE
ETHICAL DECISION
WITH ETHICS EDUCATIONEthics in the profession acts as an effective countervailing power to organizational influence or power of authority
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This was seen in the case of Zambia National Farmers Union
This is important in instances where a boss asks an accountant to manipulate figures so as to use larger figures and embezzle money to their benefit
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Ethics in the accountancy profession ensures that people in the accounting field have a broader understanding of fraudulent conduct
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Penalties of fraudulent activity- if found, are not strict and felt
Accountants engage in fraudulent conduct because they are in direct contact with the funds
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Accountants and Auditors have informational advantage over those they serve.
This power asymmetry can be exploited to the advantage of the professional and thus there needs to be a corresponding sense of professional responsibility
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Professional ethics provides the function of identifying moral hazards providing the appropriate evidence
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LIMITATIONS OF ETHIC EDUCATION
What are Limitations?
“A limitation is a restriction or something that holds you back”
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LIMITED MATERIAL OR INSUFFICIENT COVERAGE
Is ethics Important
?
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Business Educators
Avoiding ethics in their courses or dealing with the topic only superficially
Being uncomfortable to discuss ethical issues in the classroom.
Fear of not leading by example deters them from teaching ethics
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LACK OF PARENTAL INSTRUCTIONFamily plays a key role since an individual’s personality is shaped within family primarily by behaviours of parents
“A lack of parental instruction makes it hard for educators to impart knowledge about ethics in students because of the weak foundation”
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Failure to take into account students ethic education background.
Educators have given little attention to students moral education background before entering into college or university classrooms
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FIXED ETHICAL ATTITUDES
“The notion that every individual has got his or her own fixed ethical attitude which cannot be modified despite ethic education is a major objection of ethic education”
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FACTORS AFFECTING ETHICAL CHOICES OF ACCOUNTANTS
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There are many factors affecting choices of accountants. These can be classed into three main categories namely;
Individual Factors
Organisational Factors
Ultra-Oraganisational
Factors
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INDIVIDUAL FACTORS
Social pressure and culture
moral obligation
educational factors Personal factors
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ORGANISATIONAL FACTORS Top management support for ethical practice
Company code of ethics
Poor security controls
Organisational commitment
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Remuneration structures
39%
61%
Cima survey 2015unsatisfied satisfied
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ULTRA ORGANISATIONAL FACTORS
Government laws
Professional body code of ethics
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RECOMMENDATIONS
Introduction of an ethics subject in the school curriculum in primary school e.g. similar to Mulenga and Jelita literature through the ministry of Education and organizations such as FAWEZA
Similar legislation such the SARBOX of 2002 and Dodd Frank of 2010 to deter accountants from malpractices in their profession and anyone who acts contrary to the provisions of the act must be prosecuted accordingly
In most organizations , there must be frequent seminars ,workshops for courses on ethics spearheaded by the Government in conjunction with organizations such as Transparency international Zambia and Anti corruption commission to sensitize the masses on the value of ethics as a professional.
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CONCLUSION We highlighted what ethics education is ,its history and
evolution, how it was affected before and after the financial crisis, its importance ,limitations and possible recommendations
Despite there being limitations on how much can be done about individual ethical choices, ethics education has come a long way and has yielded positive results and is yet to yield even more positive results.
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QUESTIONS?