Analyzing Ethics and Professional Practice in Accounting Roles

This report analyzes the compliance of a company with various codes of business ethics, focusing on the core capabilities employers seek in new hires and existing employees. It details a face-to-face interview with an accountant in an Australian retail firm to assess their awareness of professional body codes, organizational policies, and the influence of these codes on behavior. The report also examines the consequences of breaching ethical codes, communication methods for ethical standards, and continual professional education requirements. The analysis includes a discussion of the APES 110 Code of Ethics and a reflection on the differences and similarities between expectations and actual practices in maintaining ethical conduct within the accounting profession. The report concludes by emphasizing the importance of ethical behavior in ensuring financial stability and legal compliance within organizations.

Running head: PRINCIPLES OF PROFESSIONAL PRACTICE
Principles of professional practice
Name of the Student:
Name of the University:

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PRINCIPLES OF PROFESSIONAL PRACTICE
Executive Summary
A business must delegate its operation to the individuals who comply with the authorized
code of ethics of the business, and reinforcing the same with the defined work behaviors.
This would also help in building a strong team along with more productivity and a healthy
workforce. The discussion deals with the analysis of the compliance of a company with the
various codes of business ethics, which is the core capability that employers want in new
hires and the existing employees. This would also help to build a strong team, and it also
increases productivity and creates a healthy workforce. In the current discussion a face to
face interview is to be conducted in order to make sure whether the employees of a business
is aware of their codes of the professional body and their policies and procedures of the
business. For the analysis the chosen individual is an accountant of a retail firm in Australia.
In case of a breach of the ethical codes in the organization warning are given at first and are
supervised for some time. However in case the violation is a major one, the situation is taken
to the management level and the level of punishment is decided accordingly decided that may
include suspension to expulsion.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
The questions asked for the face to face interview................................................................3
The interview.........................................................................................................................4
Ethics in Professional Accounting Bodies.............................................................................7
Differences and Similarities in Expectations.........................................................................8
Reflection...............................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11
Appendix..................................................................................................................................11

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PRINCIPLES OF PROFESSIONAL PRACTICE
Introduction
The discussion deals with the analysis of the compliance of a company with the
various codes of business ethics, which is the core capability that employers want in new
hires and the existing employees. The Core capabilities does not include tangible skills like
having a sophisticated level of computer literacy or having a great sales record, but core
competencies have a strong impact on the performance of the employees. A business must
delegate its operation to the individuals who comply with the authorized code of ethics of the
business, and reinforcing the same with the defined work behaviors (Dion, 2017). This
would also helps to build a stronger team, and it also increases productivity and creates a
healthy workforce. In the current discussion a face to face interview is to be conducted in
order to make sure whether the employees of a business is aware of their professional body’s
codes and their procedures and policies of the organisation. For the analysis the chosen
individual is an accountant of a retail firm in Australia. The financial accountants are those
individuals in a firm who gives specialist services to organizations to make sure that they are
financially stable and obey the various legal regulations and requirements (Donaldson, 2016).
They make the financial statements on the basis general ledgers and participate in vital
financial decisions including mergers and acquisitions, benefits planning and long-term
financial projections.
Discussion
As the aim of the current report is to find out the process of how the professional
ethics and behaviour and affect the workforce in their work life, hence the following
interview questions have been made:
The questions asked for the face to face interview
 How aware is the accountant of their professional body’s codes?

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 Are the accountant aware of the of their organization’s policies and procedures?
 What influence do these codes have on their own behavior and that of their peers and
supervisors?
 What are the possible consequences if they breach their professional body’s code?
 What are the possible consequences if they breach organization’s code/s?
 How does the body communicate the need to be ethical to its members?
 Do members have to complete continual professional education?
 In what areas do members have to complete continual professional education
 What barriers are there to adhering to the code/s?
The interview
1. Compliance with the professional body’s codes:
Response:
As per the interview response, the Professional Accountants has confirmed that the
company follows the APES 110 Code of Ethics, for this company the APES 110 Code
of Ethics provides a frame to guide professional accountant in the actions to take in
the public interest when they become aware of a suspected illegal act, committed by a
client or employer. The code is ethics the Australian professional body for ethics
APES 110 Code of Ethics for Professional Accountants Code that is issued by the
Accounting Professional and Ethical Standards Board (APESB). According to the
code, the members practising in Australia or abroad must comply with the Code
unless they are prevented from doing so by applicable laws or regulations. In the
interview with the financial accountant of the company the compliance of this code
has been expected.
2. Compliance with the organization’s policies and procedures:

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Response:
The procedures and policies are framework to impact and understand all vital
decisions and actions, and all actions take place within the boundaries set by
them. The Procedures are the particular methods employed to express policies in
action in daily organization operations (Eriksson & Kovalainen, 2015). I am aware of
the company policies and procedures. Since the company deals with retail operations
the organization’s policies and procedures includes the broad guidelines that outline
the general practices to be followed by all workers to get the goals.
3. Influence do these codes have on their own behavior and that of their peers and
supervisors:
Response:
As per the norms of the company, I try to maintain the ethical rules and norms of
professional conduct in the organization. I also try to avoid the actions that may
hinder the company’s integrity and objectivity. In addition to that, being an employee,
I have to prove myself to the management. I always try to do my job with due care
and professional competence. I even try to defend the organizations confidentiality of
the financial data I deal with and I also apply rules to avoid doing anything which
may discredit my profession as well as position.
4. The possible consequences if they breach their professional body’s code:
Response:
In the context of Non-compliance with Laws and Regulations as per the code is ethics
the Australian professional body for ethics APES 110 Code of Ethics for Professional
Accountants Code, the employee has to face legal action in our company. The
company can face many severe consequences to due to this. Therefore the internal
control is quite strong in our company in order to make sure that there is no violation

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of the ethical code of conduct. The severity of the consequences can also result in
bankrupts; therefore our company is quite alert regarding the violations.
5. Consequences if they breach organization’s code/s:
Response:
There is a penalty for breach of the code of the company. The codes are necessary to
be complied with the Office of Ethics and Compliance. The members who are
working in the company are severely penalized in case of any misconduct of the
company rules (Garegnani, Merlotti & Russo, 2015). The punishment which is
suitable is decided in the severity of the misconduct. In case of a breach which is very
nominal we are given a warning and are supervised for some time. However in case
the violation is a major one, the situation is taken to the management level and the
level of punishment is decided accordingly decided that may include suspension to
expulsion.
6. Process of communication of the organizations to be ethical to its members :
Response:
In our company there exists clearly defined procedures for the process of reporting
and unethical or behaviors that are illegal taking place in our organizations. We have
variety of resources that can point out and communicate the ethical requirements of
the company (Mladenovic, Martinov-Bennie and Bell, 2017). Our organization has
the Office of Compliance and Ethic for overseeing these matters. One to one
discussion takes place by the HR in order to make us understand the ethical codes that
are applicable. Proper information are given to all of us to make us aware of the
codes.
7. Continual professional education:
Response:

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The training for ethics is given on a timely basis to us since the ethics education of
accounting is seen by the management of our company as a remedy that is promising
for the address of the ethical crisis that are being faced by us accountants (Shaw,
2016). In spite of having a code of ethical conduct of APES 110, we also face ethical
issues in the course of operations and therefore the provision of ethics training is very
important in our company.
8. Reward for complying with the Ethical conduct
Yes, in our organization, there is a a systeetic way of rewarding the employees who
comply with the ethical conduct of the orgainastion. A good qulaity work s always
appreciated in our compny. In addition to that theindivitauls who inform the
mangement reguading the unethical miscobducts are slo given benefits (García-
Sánchez, Rodríguez-Domínguez & Frías-Aceituno, 2015). However, the
identification of the information giver is kept private and therefore no one can know
reported the issue. The person is definitely appreciated by the admistration, and this
thing is considered during the evaluation of performance. Therefore, it is not
completely the case that there is no motivation behind reporting the behaviours that
are unproffessional.
9. The Barriers to adhering with the code
While working in this company I do feel that there exists a lot of pressure in this
company for engaging in any activity that is unethical or against the code (Sethi,
2016). This is because the working environment me are also operating ethically with
full moral and there is always the fear of violation that may fresult in negetive
outcome both for me and the organaisation (Trevino & Nelson, 2016).

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Ethics in Professional Accounting Bodies
The Professional Accountants has confirmed that the company follows the APES 110
Code of Ethics, for this company the APES 110 Code of Ethics gives a framework to guide
professional accountant in the actions to take in the public interest when they become aware
of a distrusted unlawful act, committed by a employer and client. The code is ethics the
Australian professional body for ethics APES 110 Code of Ethics for Professional
Accountants Code that is issued by the Accounting Professional and Ethical Standards Board
(APESB) (Leipziger, 2017). According to the code, the members practising in Australia or
abroad must comply with the Code unless they are stopped from doing so by applicable
regulations and laws.
Differences and Similarities in Expectations
In the current discussion with the professional accountant of the company, I got to
understand the important of adhering to the ethical codes of conduct in the organization.
However, there is variation of response from the interviewee from my expectations.
While conducting in the interview threre are some differences found that in the
professional bodies along with the people working in accounting profession have to follow
the code of conduct, however, there are also a lot of similarities. I found out after the
interview that in an working environment with an ethical culture, every accountant are
needed to be immensely effective in doing their job. They need to concentrate on both their
training of professional ethics and comprehension (Chao, Li & Chen, 2016). In addition to
that their abilities are needed to be efficient in the process of assessment acquirement, and
response on various financial transactions in order to help their clients as well as the company
to make them achieve a long-run sustainability (Crane & Matten, 2016). It may happen that
few of the accountants may get involved in some unethical act. In such cases the professional
bodies are very strict in maintain the rules for them. The compliance with these codes has

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been their priority, and there exists effective measures for the various wrongful conducts in
the work place.
On the other hand, there are areas that has been identified after my investigation that
some of the accounting professionals may not keep their interests first before that of their
profession and hence they do not follow the ethical path (Ferrell, & Fraedrich, 2015).
However, for accountants with high integrity, they owe it to their career, profession, and
community to react to breaches they may find rather than being complicit in illegal activities.
The identified barriers to proper adherence to codes of professional conduct arev as
follows: a) the organization does not have a well-documented and communicated code of
standards and ethics;
b) The code of ethics are not always advocated by the management (King, 2018)
c) The person does not understand the code of ethics and has ethical dilemmas
d) Despite of all the awareness of code of ethics, the person at times chooses to give priority
to self-interest.
Reflection
Taking in hand my carrier option as an accountant, it can be said that as per the
information obtained from the interview, I have come to realize that as an Accountant, I will
be handling a wide range of privileged and sensitive financial data of the organization where
I will be working. In addition to this, since as professional accountant, I will be have to
operate with the data that have an impact on stock prices and bonuses, therefore, I may face
several ethical issues. Due to this, I must ensure that I never let such dilemmas get to me and
I always follow the path of ethics. Considering the consequences I have to avoid such
situations. This is because, if during the very start of my career, I indulge in fraudulent

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activities or get induced, I may face major repercussions like being even expelled or
suspended. For operating in the organization in the most effective and efficient way, I face
any kind of issue or dilemma, I must find out the wither I have followed the ideal code or law
and act accordingly. As per the interview I conducted I got to know that as a professional
accountant, I must follow the code that is established by the APESB that is APES 110 Code.
Along with the various organizational policies and procedures. As an accountant I would also
consider the various stakeholders who are associated with the company that will be affected
by the decision or the issue to take or not take a particular action. As per the information I
obtained from the interview I need to report in case of any unethical or illegal conduct of my
fellow colleague or employer.
Conclusion
A business must delegate its operation to the individuals who comply with the
authorized code of ethics of the business, and reinforcing the same with the defined work
behaviors. This would also help to build a strong team, and it also enhances productivity and
maintains a healthy workforce. In the current discussion a face to face interview is to be
conducted in order to make sure whether the employees of a business is aware of their codes
and their organisation's policies and procedures. The Professional Accountants has confirmed
that the company follows the APES 110 Code of Ethics, for this company the APES 110
Code of Ethics provides a framework to guide professional accountant in the actions to take
in the public interest when they become aware of a suspected illegal act, committed by a
client or employer. The code is ethics the Australian professional body for ethics APES 110
Code of Ethics for Professional Accountants Code that is issued by the Accounting
Professional and Ethical Standards Board (APESB). According to the code, the members
practising in Australia or abroad must in compliance with the Code unless they are stopped

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from doing so by applicable regulations and laws. In case of a breach of the ethical codes in
the organization warning are given at first and are supervised for some time. However in case
the violation is a major one, the situation is taken to the management level and the level of
punishment is decided accordingly decided that may include suspension to expulsion.

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References
Chao, M. C. H., Li, F., & Chen, H. (2016). Perceived ethicality of moral choice: The impact
of ethics codes, moral development, and relativism. Nankai Business Review
International, 7(2), 258-279.
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Dion, M. (2017). Corporate citizenship as an ethic of care: corporate values, codes of ethics
and global governance. In Perspectives on corporate citizenship (pp. 118-138).
Routledge.
Donaldson, T. (2016). Values in tension. Business in Ethical Focus: An Anthology, 198.
Eriksson, P., & Kovalainen, A. (2015). Qualitative methods in business research: A practical
guide to social research. Sage.
Ferrell, O. C., & Fraedrich, J. (2015). Business ethics: Ethical decision making & cases.
Nelson Education.
García-Sánchez, I. M., Rodríguez-Domínguez, L., & Frías-Aceituno, J. V. (2015). Board of
directors and ethics codes in different corporate governance systems. Journal of
Business Ethics, 131(3), 681-698.
Garegnani, G. M., Merlotti, E. P., & Russo, A. (2015). Scoring firms’ codes of ethics: An
explorative study of quality drivers. Journal of Business Ethics, 126(4), 541-557.
King, A. (2018). NOCLAR: What it means for you. Australian Restructuring Insolvency &
Turnaround Association Journal, 30(1), 20.

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PRINCIPLES OF PROFESSIONAL PRACTICE
Leipziger, D. (2017). The corporate responsibility code book. Routledge.
Mladenovic, R., Martinov-Bennie, N. and Bell, A., (2017). Business students’ insights into
their development of ethical decision-making. Journal of Business Ethics, pp.1-13.
Sethi, S. (2016). Globalization and self-regulation: The crucial role that corporate codes of
conduct play in global business. Springer.
Shaw, W. H. (2016). Business ethics: A textbook with cases. Nelson Education.
Trevino, L. K., & Nelson, K. A. (2016). Managing business ethics: Straight talk about how to
do it right. John Wiley & Sons.
Appendix
The questions asked for the face to face interview
 How aware is the accountant of their professional body’s codes?
 Are the accountant aware of the of their organization’s policies and procedures?
 What influence do these codes have on their own behavior and that of their peers and
supervisors?
 What are the possible consequences if they breach their professional body’s code?
 What are the possible consequences if they breach organization’s code/s?
 How does the body communicate the need to be ethical to its members?
 Are there legal ramifications if the code is breached?
 Do members have to complete continual professional education?
 In what areas do members have to complete continual professional education
 What barriers are there to adhering to the code/s?

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