Bpp learning Media is an acca approved Content Provider

Professional values and corporate values
An individual is put into a position by their employer where they are required to amend a set of 
accounts to improve the profit figure. Such amendments go against the code of conduct of their 
accountancy body. 
8.3 Spotting an ethical dilemma 
Accountants will encounter situations throughout their professional life that present them with an 
ethical 
dilemma
or 
conflict of interest
. The following questions will help develop your ability to identify 
problems in the future. Use the information given to identify the ethical principles at stake. 
QUESTION 
Time pressure
 
You are under time pressure to complete this month's management accounts. Important sales 
information is provided by the sales department, usually in good time for you to incorporate it into the 
final figures. The sales report is delayed this month due to staff sickness and you will not receive the 
information until a few hours before the accounts are due for presentation to the finance director. 
ANSWER 
There is an 
integrity 
issue here. While you may have time to include the information in the management 
accounts, it is unlikely that you will be able to check its accuracy as well. Therefore you risk 
misinforming the finance director of the month's sales. 
 
QUESTION 
Tax advice
 
During your lunch break, your company's human resources manager has asked you for some help. She 
has recently inherited a considerable sum of money and would like you to calculate her inheritance tax 
and capital gains tax liabilities. She has also asked you for advice on how she should invest the money. 
ANSWER 
The issues here are 
professional competence and due care
. Unless you are a tax expert, it is unlikely 
that you would have sufficient competence to calculate the tax liabilities. Giving financial advice can be 
a minefield, and you may need to be qualified under the financial services regulations before you could 
do so.