As previously noted (see Part
1, Part
2 and Part 3), the Consultative Committee
of Accountancy Bodies (CCAB) has published case studies on ethical issues
encountered by professional accountants in business, in public practice,
working as non-executive directors and working in the voluntary sector. These
case studies provide guidance for resolving ethical problems and encourage
debate. CCAB welcomes feedback on the
case studies and other ethics related issues.
The December 2011 CCAB guidance on Ethical Dilemmas Case Studies for
Professional Accountants Working in the Voluntary Sector illustrates how
the ethical codes of the CCAB bodies can be applied by professional accountants
working in the voluntary (or ‘third’) sector. These scenarios are not intended
to cover every possible circumstance, but instead to outline 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 - Disclosure of malpractice – unauthorised
payments;
Case Study 2 - School governor – fair tender policy;
Case Study 3 - Disclosure of malpractice – grant claim;
Case Study 4 - Personal reference;
Case Study 5 - Undisclosed employee benefits;
Case Study 6 - Persuading others to tell the truth.
The guidance states that: “An accountant in the voluntary
sector carries a great deal of responsibility, and may be subject to scrutiny
by the staff and members of the local community.” It further states that: “A
professional accountant working in the voluntary sector has a responsibility to
further the legitimate aims of the organisation for which he or she works. The
ethical codes of the CCAB bodies do not seek to hinder the fulfilment of that
responsibility, but address circumstances in which compliance with the
fundamental principles may be compromised. The professional accountant is
required to act in the public interest, which requires objectivity to be
exercised at all times. On occasions, it may be difficult to reconcile this
requirement with the duty to act in the interests of the voluntary sector
organisation. Therefore, it is important to understand the conceptual framework
approach to resolving ethical dilemmas.”
