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1.1 Introduction Financial statements of an enterprise depict the wholesome financial situation of the enterprise for a particular period.

The information in these statements are of vital importance for a large section of the society, which deal with that enterprise. It may be suppliers of material, customers, investors and employees. Keeping in view the importance of these statements and the large section of the society who use these statements for taking many vital decisions, it is necessary that these statements are attested by professional accountant who is expert in this field so that the objectivity, integrity, reliability and credibility of the information is assured to a large extent. The responsibility of accountant is to provide financial information to management by researching and analyzing accounting data; preparing reports. Accountant should recommends suitable financial actions by analyzing accounting options and reconciles financial discrepancies by collecting and analyzing account information of the financial situation of the company. The importance of accountant also is to maintain financial security of the company by following internal controls and also answers accounting procedure questions by researching and interpreting accounting policy and regulations. A responsible accountant should provide trustful and dependable financial report based on four code of ethnic which are integrity, objectivity, confidentiality and professional behavior.

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1.2 Content 1.2.1 Integrity 1.2.1.1 Background study on integrity Integrity means consistency of actions, values, methods, measures, principles, expectations and outcomes. In ethics context, integrity is regarding the honesty, truthfulness, completeness and relevance of the actions. In professional accountant code of ethics, integrity not only cover above statements, but also straightforward dealing in all professional and business relationships. In other words, an accountant who is integrity must not only accountable and answerable to it client on what they ask but also give and alert them on what they problems they identified and also professional advise that relevant to their client, not only honest but also complete message to their client to avoid misleading and misunderstand of his clients. Business processes and accounting systems can change. However, the need for accountants to maintain high ethical standards of professional conduct will never change. The institution of management Accountants says that ethic deals with human conduct in relation to what is morally good or bad, right or wrong. It is the application of values to decision making. These values include honesty, fairness, responsibility, respect and compassion. We sometimes will be in dilemma to decide that our action is ethical or not? Then you can ask yourself whether you would be embarrassed to read about your action in the newspaper the next day. Another warning sign that an action may be unethical is when the justification for the action is everybody else is doing it, the phrase quote from Warren Buffett has described as the five most dangerous words in business. He said that this excuse will always raise a red flag. Integrity is so important to accountant. For example, if you buy a car, you can see many of the quality details. Further, if something goes wrong with the car, you will certainly know it. But accounting information is different. You cant see its quality. You might not notice for years that something is wrong- probably not until its too late to do anything about it. Thus, you rely on t he integrity of accountants to assure yourself that the information about a company is correct. If you cannot trust the accountant, then the information is nearly worthless.
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1.2.1.2 Resolution based on integrity As in this case study, I as a qualified accountant although I have a good working relationship with the regional director and he asked me to investigate on this matter, I should not be bias that helping him to cover up the behind scene, it is because I have found out some problems in my investigation. In this scenario, my team had discovered a range of difficulties with this project, starting with the design faults and will directly affect the manufacturing processes. It is obvious that various contracts will be breached and litigation will occur. Besides, my team does found out that the estimation of the delay project A needed about minimum of three months instead of six to eight weeks to be complete. Moreover, the extra direct costs are likely to be 7 million to 10 million which the regional director had underestimate the extra direct cost to 4 million to 5 million. Furthermore, from the financial press, that the group is rumoured to have difficulties with its bankers. Thus, this matter will affect the financial position of the groups. To conclude, with all these problems arise, I as an accountant and in such a trusted position, I am expected to be honest and have a good set of morals although I feel I am under pressure. I should tell out this immediately alerting to the finance director and the main board to the seriousness of the situation to avoid unethical or misleading actions to happen. After I have identified out this, I should give some professional advice to them of the potential conflicts that may occur. As this case is so serious, which will detrimental to the group financial position. Besides, I must refrain from engaging in any conduct that would prejudice carrying out duties ethically. Moreover, abstain from engaging in or supporting any activity that might discredit the profession. Additionally, integrity and ethics must be practice to avoid conflicts of interest. Accountants may be caught in a conflict of interest when they provide advice to business owners and release audits to the general public. In this situation, accountants are in danger of presenting an opinion on the company accounting process that is biased or not completely factual.

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In fact, accountants can also face undue pressure from clients to hide negative financial information. An ethical code of conduct can help accountants understand the gravity of these situations and provide them with a system for reporting unethical business requests. 1.2.2 Objectivity 1.2.2.1 Background study on objectivity Objectivity is a set of thinking that not including bias, prejudice and compromise and which are giving fair and impartial consideration to all matters that are applicable to the mission in hand, ignore those things which are not related. Generally, it is a fundamental ethical principle and requires that the accountant judgment is not affected by a subjects individual feelings and conflicts of interest. The rule of objectivity imposes an obligation on all professional accountants not to compromise their professional or business judgment because of bias, conflict of interest or the undue influence of others. A professional accountant may be exposed to situations that may impair objectivity. It is impracticable to define and prescribe all such situations. Relationships that bias or unduly influence the professional judgment of the professional accountant should be avoided. 1.2.2.2 Resolution based on objectivity As in this case study, I as a qualified accountant should know that an auditors objectivity is to provide an impartial opinion is expressed in the light of all the available audit evidence and the auditors professional judgment. Objectivity also requires that the auditor adopts a rigorous and robust approach and is prepared to disagree, where necessary, with the directors judgments. It is against this background that the auditor is required to express an opinion on the financial statements. The audit involves considering the process followed and the choices made by the directors in preparing the financial statements and concluding whether the result gives a true and fair view. Furthermore, we are observing that there are a treats to the auditors objectivity, including a perceived loss of independence, may arise where the outcome of that service has a material impact on the financial statements of the audited entity. The regional
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director was giving some false information to finance director which may incurred a seriously impact to the main board. This situation may affect the choices to be made by the board of directors in deciding on the accounting policies to be adopted by the entity. For example, the main board has to select the ones that they consider most appropriate and this decision can have a material impact on the financial statements. Furthermore, many items included in the financial statements cannot be measured with absolute precision and certainty. The regional directors, whether deliberately or inadvertently, make a biased judgment or an otherwise inappropriate decision, the financial statements may be misstated or misleading. As a resolution, a professional accountant should not allow bias, conflict of interest or undue influence of others to override professional or business judgments. To avoid any uncertainty and impact, a responsible accountant should make decision to tell the truth to finance director that ignore the consequences that will affect the relationship with the regional director because the future cash flows resulting from the finance report can be objectively determined. If the finance report was made up based on some irrelevant information, the impact could be the company will engage in financial losing or the damage of reputation of the company. .

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1.2.3 Confidentiality 1.2.3.1 Background study on confidentiality Confidentiality is one of the fundamental principles of professional ethics. The fundamental principles of professional ethics are the foundation of the code of ethics and they characterize the expected qualities of a professional accountant. Confidentiality and privacy is center to keep confidential anything pertaining to the representation of a client and treating people with dignity. But to whom is the duty of confidentiality owed? The mainly affected parties are the Regional Director, the Chief Financial Officer and the Board of Directors. Mediate impact investors and other stakeholder groups, due to the group's cash flow problems. In the course of performing their professional duties, professional accounts have access to much confidential information about their clients or their employers business affairs, information not normally available to the public. It would be harmful to the business of the client or employer if such information is disclosed to outsiders without the knowledge and consent of the client or employer. Overall, it is a legal obligation to maintain the confidentiality of information obtained under a duty of confidentiality. There are some circumstances permitted by law, in violation of this responsibility. The principle of confidentiality provisions, the obligations of the members, in order to avoid: External disclosure or employing organization confidential information obtained as a results of appropriate and specific professional and commercial relations authority, unless there is a legal or professional right or duty to disclose and The use of confidential information obtained professionals and businessmen of results related to their personal interests, or the advantage of third parties. Confidentiality is not a unique ethical requirement for the accounting profession. Professionals such as lawyers and doctors have the same obligation to respect the confidentiality of information about their clients. Important, it should comply with the
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confidentiality obligations, not only in the professional relationship. In addition to the ethical requirements, confidential information obtained by the use of official capacity "insider" securities dealings at the stock exchange is also a legal offence under Section 132A of the Companies Act, 1965. Case there is the principle of confidentiality, may be overturned, the professional accountant to disclose confidential information of clients or employers. The following is an example of this case: a) When the disclosure is permitted by law and authorized by the client or employer. b) When disclosure is required by law for example, reports in violation of the law or to produce documents or other evidence in a court or the law or in the proceedings.

1.2.3.2 Resolution based on confidentiality

As a qualified accountant, I will confirm the facts first to confidentiality the information. After confirm, if the confidential information is allow to disclose. I will tell the financial director the fact; my team just started also no reliable estimates yet and need delay the Project A minimum of three months. Besides that, i also need to discuss with the financial director about the costs problem. I will indicate the Project A that extra direct costs are likely to be 7 million to 10 million, that project can not incur around 4 million to 5 million in extra costs. I will write a report assign detail about the costs to financial director for discuss to add the costs and explain this is before any potential claims for compensation. If the engagement is with the regional directors group company, the duty of confidentiality owed to the client, if financial director designed to further information, I will make my position clear. However, I will try to contact the regional director and discuss with him the called I receive from financial director. If it is then that the regional director of deliberately misleading the main board, I will ask him rectify position.
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I should review the engagement letter, which will establish a client who has a duty of confidentiality to the purpose. The company consultant, rather than as the auditor, if the participation and supervision department regional director, said the main board is communication within the things that I have no direct responsibility. In the meantime, I should try to contact the regional director to inform him of the financial directors misunderstanding, to reconcile the conflict estimated. I should not participate in any main board deliberately misled.

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1.2.4 Professional behavior 1.2.4.1 Background study on professional behaviour The principle of professional behaviour imposes an obligation on professional accountants to comply with relevant laws and regulations and avoid any action that may bring discredit to the profession. This includes actions which a reasonable and informed third party, having knowledge of all relevant information, would conclude negatively affects the good reputation of the profession. 1.2.4.2 Resolution based on professional behaviour As in the case study, I conclude that a statement that in marketing and promoting themselves and their work, professional accountants should not bring the profession into disrepute. Professional accountants should be honest and truthful and should not: Make exaggerated claims for the services they are able to offer, the qualifications they possess, or experience they have gained; or Make disparaging references or unsubstantiated comparisons to the work of others.

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1.3 Conclusion As a conclusion, a professional accountant is required to comply with the fundamental principles which are integrity, objectivity, confidentiality and professional behaviour. For integrity, a professional accountant should be straightforward and honest in all professional and business relationships. Based on objectivity, a professional accountant should not allow bias, conflict of interest or undue influence of others to override professional or business judgments. For confidentiality towards a company, a professional accountant should respect the confidentiality of information acquired as a result of professional and business relationships and should not disclose any such information to third parties without proper and specific authority unless there is a legal or professional right or duty to disclose. In addition, a professional accountant should comply with relevant laws and regulations and should avoid any action that discredits the profession to imply with the professional behaviour.

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