Ethics in accountancy. Please Assist. Thanks

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Question 2: (20 marks) You are an accountant with a prominent South African accounting group, with its offices situated in Sandton CBD. The company has a December 31-year-end calendar year, and signs contracts with consumers to perform services. The contracts are usually signed December 1" and are a year in length. Accounting principles require the company to record the revenue for the contract for one month only, the month of December. The remainder of the revenue is recognised on next year's financial statements. However, management instructed you to record the entire amount of the contract in December to boost revenues for the year end. Management receives a bonus for the boosted revenue, and the subordinate receives recognition in an upcoming performance review. Source: James, K. 2021. Ethical dilemmas in accounting. Small Business Chron[website]. Retrieved from https://mallbusiness.chron.comlethical- ... accounting. 3740.html [Accessed 11 January 2022]. You are faced with an ethical dilemma and need to make a decision on how you will proceed. Explain how you will go about making a decision by means of the following factors: 2.1 Does it meet company standards? 22 Is it fair to all stakeholders? (10 marks) (10 marks) Aligns with SAICA competencies: Y3 Problem solving a) Use a questioning mind-set during problem identification and analysis b) Weigh the relevance and accuracy of information; challenge assumptions, and probe for detail c) Use reasoning, critical analysis and innovative thinking to identify likely impacts of different issues and the implications of corresponding courses of action
d) e) f) Y4 a) b) c) Demonstrate fiexibility, creativity and innovation in generating solutions and identifying new opportunities Make decisions and recommendations on a rational and timely basis, supported by facts and research Identify when to seek assistance from experts/specialists to expedite problem- solving decision-making and/or reaching conclusions (based on theoretical scenarios provided) Judgement and decision-making Only exercise judgement and make decisions when a sound and logical solution is found which addresses root causes of problems in collaboration with affected stakeholders Determine for each alternative course of action: (i) likely outcome (ii) apparent effectiveness of addressing the root causes of problems (iii) feasibility of effective implementation (iv) stakeholder support for effective implementation Lv) ranking in relation to the other identified courses of action Use evidence, experience and technical competencies to make insightful decisions through an interrelated process that includes the following steps: (1) Determine the scope of the matter/problem (ii) Collect and verify relevant financial and non-financial information (ii) Apply accumulated knowledge and experience and make use of appropriate concepts, principles, and procedures while also responding appropriately to statutory and professional requirements, regulations and policies (with due recognition of stakeholder interests, and protection of public interest), to investigate a context-based course of action (iv) Negotiate and reconcile differing views to find acceptable compromises leading to agreement where possible 1) Recommend, justify and prioritise the decision, solution, conclusion or course of action based on degree of urgency or some other criterion (vi) Recognise the wider potential impact of decisions and the potential internal and external responses Remain aware of the impact of personal biases on decision-making Consider alternative viewpoints, objections, and different frames of reference Professional ethics Relate professional ethics to the notion of public interest by being competent and delivering quality work Distinguish between ethical principles and rules of conduct, and apply the fundamental ethical principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour in different scenarios Identify threats to ethical principles and apply appropriate safeguards to facilitate ethical behaviour Apply an ethics-based reasoning process (based on professional values and attitudes and an organisational code of ethics) to solve ethics dilemmas relating to organisational ethics and corporate culture Analyse all courses of potentially unethical action as well as the consequences of each (e.g., disciplinary actions) d) e) 13 a) . b) c) d) e)