Ethical Dilemmas: Case Studies for Professional Accountants – Part 1 of 4

The Consultative Committee of Accountancy Bodies (CCAB) comprises the ICAEW, ACCA, ICAS and CIPFA in the UK and the Chartered Accountants Ireland. The Board of CCAB Ltd consists of five directors, senior members of the five member bodies. CCAB provides a forum whereby its member bodies can meet and act collectively on behalf of the accountancy profession in the UK to promote the public interest on matters within the sphere of the accountancy profession and its members.

In December 2011, the CCAB published case studies on ethical issues encountered by professional accountants in business, professional accountants in public practice, professional accountants working as non-executive directors and professional accountants working in the voluntary sector. The purpose of these case studies is to provide guidance for resolving ethical problems and to encourage debate in these areas. CCAB welcomes feedback on the case studies and other ethics related issues.

The case studies are compatible with the ethical codes of the CCAB member bodies, which are derived from the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants (IESBA). They illustrate the application of the “conceptual framework” approach to resolving ethical dilemmas. This approach focuses on safeguarding the fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

The CCAB guidance on Ethical Dilemmas Case Studies for Professional Accountants in Business outlines key principles and processes that could be considered when attempting to identify, assess and resolve ethical problems in line with the ethical codes. Six case studies address the following matters:

·       Case Study 1 - Pressure to overstate stock valuation;

·       Case Study 2 - Pressure to participate in fraudulent activity;

·       Case Study 3 - Suspicion of false accounting;

·       Case Study 4 - Company restructure – working with limited resources;

·       Case Study 5 - Confidentiality when bidding for a contract; and

·       Case Study 6 - Non-disclosure to auditors.