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What's the difference between an ethical issue and a business issue? This question seems straightforward enough, yet recent T4 exam results have shown that many students fina it a tough one to answer
By the T4 case study writer
The T4 assessment matrix indicates that 10 marks are available in the exam under the "ethics" criterion for identifying, discussing and advising on ethical issues raised in the unseen material. But candidates in every sitting have been confused about what constitutes an ethical issue and what distinguishes it from a business issue.
Before I clarify the difference and explain what the exam requires with regard to your discussion of, and advice on, ethical issues, it's useful to consider CIMA's code of ethics. This sets out the following five fundamental principles for professional accountants:
* Integrity. Be straightforward and honest in all your professional relationships.
* Objectivity. Do not allow bias, conflicts of interest or the undue influence of others to override your judgement.
* Professional competence and due care. Maintain your knowledge and skill at the level required, to ensure that a client or employer receives competent services based on current developments in practice and legislation, and act diligently in accordance with the available technical and professional standards.
* Confidentiality. Respect the confidentiality of information acquired as the result of professional and business relationships, so neither disclose any such information to third parties without proper and specific authority (unless there is a legal or professional right to do so) nor use the information for your personal gain or that of third parties.
* Professional behaviour. Comply with relevant laws and regulations, avoiding any action that discredits the profession.
The T4 exam requires you to specify what the ethical issue is in a given scenario; explain why you consider it to have an ethical dimension; and provide detailed guidance on what action could be taken to address that issue, both immediately and in the longer term, along with your justification for that advice.
Between one...