Ethically speaking
by student accountant
01 Jun 2006
Professionalism, ethics and workplace achievements are at the heart of the new ACCA Qualification. This reflects the high importance that society - both business and the public at large - places on the ethical behaviour of accountancy professionals.
To give ethics greater prominence in the new qualification, ACCA has taken a unique three-pronged approach, comprising:
a dedicated paper at the Professional level
a unique online module that will present students with challenging real-life ethical dilemmas
tailored practical experience requirements.
This approach to students’ ethical development means ACCA’s professional qualification meets the educational standards and guidelines set out by the International Federation of Accountants (IFAC). These stipulate that professional accountants should first acquire ethics knowledge, then develop ethical sensitivity, then use ethical judgement to evaluate situations, and finally should demonstrate ethical behaviour through implementing
decisions appropriately.
Commenting on ACCA’s new approach to ethics, Clare Minchington, managing director of education, learning and development at ACCA, said: ‘The ACCA Qualification will provide the knowledge, skills, and professional values for finance professionals working in both the public and private sectors. It contains a challenging mix of performance objectives, concentrating on professional values, ethics, and governance. These are the essential skills needed for the finance profession as it moves towards strengthened codes of conduct, regulation, and legislation.
‘After the accounting scandals of recent years, it’s vital for the accountants and finance professionals of tomorrow to be equipped to operate in an industry subject to ever-closer scrutiny. Our new qualification prepares the way for the professional accountant and I’m especially delighted with the online Professional Ethics module because it is a unique offering from a professional accountancy body.’
Ethical development through the syllabus
Ethical theoretical knowledge will be developed through Paper P1, Professional Accountant, a completely new exam and the first paper that students take at the
The Professional Accountant syllabus begins by examining the whole area of governance within organisations, in the broad context of the agency relationship. This aspect of the syllabus focuses on the respective roles and responsibilities of directors and officers in relation to organisational stakeholders. It also examines the role of accounting and auditing as support and control functions. The syllabus explores internal review, control, and feedback to implement and support effective governance, including compliance issues related to decision-making and decision-support functions. The recognition, assessment, and control of risk as a key aspect of responsible management is also examined. Finally, the syllabus covers personal and professional ethics, ethical
frameworks, and professional values as applied in the context of the accountant’s duties, and as a guide to appropriate professional behaviour and conduct in a variety of
situations.
Professional Ethics module
The new ACCA Qualification also requires students to undertake a unique online
Professional Ethics module, and students gain access to this module on completion of the Fundamentals level. It is recommended that students take the Professional Ethics module at the same time as, or before, the Professional Accountant exam. However, students have the option to complete the Professional Ethics module at their own convenience. Completion of the module is a requirement before applying for membership.
Although the Professional Ethics module is not mandatory for students registered at 31 December 2006, they will be encouraged to complete it. All students registering on the new ACCA Qualification after this date, including CAT students transferring to the ACCA Qualification, will be required to complete the Professional Ethics module.
The online Professional Ethics module provides students with an interactive means of exploring and practising their own ethical attitudes. It starts by asking students to examine their ethical response to a variety of situations. They then learn about alternative ethical theories before applying their learning to a work-based case study. After completing this module, students will be able to:
recognise well-known branches of ethics
understand the ACCA Code of Conduct, and correctly identify the principles in the code understand and apply the ACCA framework for solving ethical dilemmas
determine their own ethical maturity and see if it has changed as a result of taking the module
apply the framework to a business situation and arrive at a generally acceptable solution experience an ethical situation from another point of view
communicate what they have learned to a third person in an evidence record.
a crucial element in ethical development. An electronic bookmark system will record which sections have been completed.
The module uses current best practices in online learning. For example, after reading a few pages of text, knowledge can be tested by taking a short quiz. There is no pass or fail for the Professional Ethics module - students only need to show that they have completed it.
The centrepiece of this module is an animated case study allowing the student to experience a dilemma from two points of view - that of the auditor and of the corporate financial accountant. The case study is based on an auditor being asked to sign off an audit where some questionable decisions have been made by the client. It requires the student to apply ethical knowledge and enhanced sensitivity to ethical issues by
demonstrating ethical judgement and behaviour through decision making.
Practical approach to ethics
Ethical values and behaviour will also be assessed through the practical experience requirements (PER). There are specific performance objectives associated with ethics and professional values, and trainees will need to demonstrate that these have been achieved. These include the ability to:
demonstrate the application of professional ethics, values, and judgement contribute to the effective governance of an organisation
raise awareness of non-financial risk.
The aim of the PER is to ensure that trainees - students and affiliates - are fully aware of the ethics, values, and standards that apply to the professional accountant, and to make these standards a consistent feature in all aspects of their work. This will include taking personal responsibility for actions, and regularly reflecting on experiences to inform future actions and decision making. This is essential to ensure that ACCA members act, and are seen to act, ethically and with the utmost integrity.
Summary
Through its new professional qualification, ACCA demonstrates its strong commitment to ensuring that ethics and professional values are assessed and demonstrated. This is achieved through the introduction of a completely new Essentials module paper at the Professional level of the syllabus, which emphasises the importance of professional values and attitudes when carrying out accountancy work. It helps students to think about their overriding responsibilities to stakeholders - their clients, their employers, their
colleagues, and to themselves. In addition, ACCA will require students to take a flexible, online Professional Ethics module that will develop ethical knowledge, sensitivity,
judgement, and behaviour. Finally, ACCA enables the integration and demonstration of the ethical capabilities acquired. This is achieved by requiring trainees to demonstrate ethical ability through meeting specific ethics-related performance objectives, which will in turn be reflected in their practical experience record.
