In this chapter we focus on professional and business ethics. Assesses how organisation is safeguarding the environment. Establish rules and standards, carry out inspections.
Ownership responsibilities By buying shares, shareholders buy a responsibility to ensure that company is managed efficiently and in ways consistent with public welfare. Focus on a broad range of stakeholders and response to demands of society and legal requirements. Build on overall framework, specifying risk management methods and co-ordinate responses, may staff risk management group. Without these cookies, we won't know if you have any performance-related issues that we may be able to address. Problems with codes Codes may be seen as inflexible and unfair sets of rules, that are not relevant to the ethical situations employees encounter.
Companies need to consider optimum size, balance of executive and nonexecutive directors, and diversity of membership. Legal risks Risks of fines or threats of closedown, or incurring costs to fight legal actions. Voluntary philanthropy, corporate citizen engages with local communities and employees, mainly for self-interest. In this very important chapter, we deal with how risks are managed, in particular how risks are reduced by control activities. How issues are perceived in organisations.
Cybernetic control system Process of control within system. In this chapter we look at the risks that organisations face.
ACCA P1 PASSCARDS.pdf
You may be asked about these in part a of a question before you consider specific corporate governance arrangements later in the question. Planned process Transparency in disclosures made Consultation with users All relevant information considered Disclosures subject to review. Narrow most affected by organisations strategy shareholders, employees, suppliers, major customers. Close business relationships Family relationships Personal relationships Staff employed by client Litigation.
Organisation for Economic Co-operation and Development produced non-binding principles to address the interests of global investors. There should be appropriate disclosure of material offbalance sheet transactions. Work roles The work role individuals have will determine what they believe to be ethical. Education and employment Locus of control Influence individuals believe they have over their own lives.
Consolidation of risk Need to aggregate at organisation levels risks identified and quantified at operational level. Need for board to meet regularly to consider effectively organisations activities, risks and control systems. Internal audit Internal audit is an independent appraisal activity established within an organisation which examines and evaluates the adequacy and effectiveness of other controls.
ACCA F8 Audit and Assurance Passcards
Professional codes stress the importance of the public interest. Need for internal audit Need depends on complexity of activities, employee numbers, cost-benefit considerations. Utilitarianism means acting for the greatest good to the greatest number. Problems with bribery Acting with expertise Competent performance by accountant may be threatened by lack of time, lack of information, insufficient training, inadequate resources. Fundamental affects society in general Particular individual in control Speculative good or bad consequences Pure only outcomes harmful.
Allegations that directors have been rewarded for making losses. Businesses should show their relationships with capitals used financial, manufactured, human, intellectual, natural, social. Definitions and objectives Regulatory requirements Links to strategic decision-making Key areas Risk classification Risk responsibilities Important controls Assurance reporting Training.
Run through the Passcards as often as you can during your final revision period. The day before the exam, teri deewani ringtone try to go through the Passcards again!
Measures to combat bribery include code of conduct, risk assessment, conduct of business rules and whistleblowing questionable transactions. For example, they let us know which features and sections are most popular. There should be annual appraisals of the performance of the whole board and of individual directors. Financial interests Share ownership, share options and profit-related bonuses provide incentives to manipulate information. We use this information to create a better experience for all users.
Every listed company should have an audit committee consisting of independent directors, with member s with financial expertise. Knowledge of the ethical threats is as important as it was in earlier auditing papers, and you need to adopt a logical approach to solving ethical dilemmas. Accountability Fiduciary duty trust and care Personal performance Obedience Skill No conflict of interest Confidentiality Handing over benefits.
Risk attitudes and internal environment. You will then be well on your way to passing your exams. But lack of statutory definition can make it difficult to enforce. How corporate governance practice serves the interests of stakeholders will also be important. Internal management control Management planning, organising and directing so that organisational objectives are achieved.
They should provide balance and help to reduce conflict between executive directors and shareholders. The collective well-being of the community of people and institutions the accountant serves.
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