Ethics and Governance : Assignment Sample

Running head: ETHICS AND GOVERNANCE
Ethics and Governance
Name of the Student
Name of the University
Author’s Note

1ETHICS AND GOVERNANCE
Table of Contents
Answer to Question B......................................................................................................................2
Answer to Question D.....................................................................................................................3
References........................................................................................................................................6

2ETHICS AND GOVERNANCE
Answer to Question B
The presence of ethics is regarded as one of the major pillars for the success of the
accenting and financial operations of the business entities as compliance with the required ethical
standards and principles ensures transparency as well as correctness in the accounting
transactions. There is not any exception of this fact in case of the provided situation of Pringles
Ltd. From the provided scenario, it can be observed that the general manager of Pringles Ltd,
Peter Pringle, has asked the accountant of the company, Marion Mason, to reduce the profit of
next couple of year so that they can be transferred to the year 2018 and 2019 when the profit will
be not high due to predicted economic slowdown. In order to keep the words of general manager
and to secure her job contract with the company Mario Mason has decided to change the
depreciation method from straight line method to sum-of-years’-digit method without disclosing
the change in the financial statement. This whole situation indicates towards the breach of ethical
standards of accounting.
Accounting Professional and Ethical Standards (APES) 110 provides the accountants
with all the ethical standards and principles that the accountants are required to comply with
while providing the professional services. As per APES 110, Section 110, Integrity, it is the
obligation on the accountants to be honest and straightforward in all professional and business
relationships (apesb.org.au 2018). There will be the breach of this standard when the job of the
accountant contains materially false and misleading statement. According to APES 110, Section
120, Objectivity, it is the obligation on the accountants not to compromise their professional
judgment under any bias, conflict or influence (apesb.org.au 2018). As per APES 110, Section
130, Professional Competence and Due Care, it is the obligation on the accountants to act