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ETHICS and
GOVERNANCE
ETHICS
-- Moral principles that governs a person’s
behavior in conducting of an activity or
doing their job
-- A norms observed by a person in doing
their job
GOVERNANCE
-- Putting into action the ethical code
Level of Governance
1. Incipient - Individual
2. Ordained - Team
3. Connective - Domain
4. Coordinative – Cross functional
5. Collaborative – Organizational
Level of Governance
1. Incipient - Activities
2. Ordained - Practices / standard
3. Connective - Policies, structure
4. Coordinative – Rules, processes,
Strategic system
5. Collaborative – Vision, Relationship
Level of Governance
1. Incipient - Performance
2. Ordained - Quality
3. Connective - Systematic work
4. Coordinative – Goal Setting
5. Collaborative – Norms setting
Basically, accountants should consider the
ethical requirements as basic principle
which they should follow in performing their
work
Auditors services to clients
1. Assurance – an engagement to provide a
high level of assurance that financial
statement are free of material
misstatement, that the audit was done in
accordance with the Philippine Standard of
Audit. This also includes a statutory audit
required by legislation or other
requirements
Auditors services to clients
2. Professional services – services
requiring accountancy or related skills
which includes, but limited to financial
management, financial consultancy,
taxation, internal audit services, compilation
of financial and others information,
management consultancy, other advisory
services
ETHICAL STANDARDS FOR
ACCOUNTANTS
 Integrity and objectivity
* Honesty, fair dealing, truthfulness
* Objectivity entails one to be fair,
intellectually honest and free of
conflict of interest
ETHICAL STANDARDS FOR
ACCOUNTANTS
 Resolution of ethical conflicts
Conflict of interest infusing
independence
ETHICAL STANDARDS FOR
ACCOUNTANTS
 Professional competence
* Attainment
* Maintenance
ETHICAL STANDARDS FOR
ACCOUNTANTS
 Confidentiality
* Authorized
* Disclosure is required by law
* Professional duty or right to disclose
ETHICAL STANDARDS FOR
ACCOUNTANTS
 Tax practice
Cross Boarders Activities
 Publicity
In Public Practice
 Independence
* Independence of mind
* Independence in appearance
 Engagement period
Significant observations
1, Compiler at the same time auditor of the
cooperative
2. Signing of audited financial report without
conducting actual audit work
3. Undertake audit engagement despite of on-
going contract of service directly or
significantly relevant to audit work
4. Doing retainer work while undertaking audit
engagement
Significant observations
5. Non observance of cooperative rules,
regulations and practices.
6. No comments or non-inclusion of
management and risk level exposure of the
cooperative client.
End of presentation

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Ethics and Governance.pdf

  • 2. ETHICS -- Moral principles that governs a person’s behavior in conducting of an activity or doing their job -- A norms observed by a person in doing their job
  • 3. GOVERNANCE -- Putting into action the ethical code
  • 4. Level of Governance 1. Incipient - Individual 2. Ordained - Team 3. Connective - Domain 4. Coordinative – Cross functional 5. Collaborative – Organizational
  • 5. Level of Governance 1. Incipient - Activities 2. Ordained - Practices / standard 3. Connective - Policies, structure 4. Coordinative – Rules, processes, Strategic system 5. Collaborative – Vision, Relationship
  • 6. Level of Governance 1. Incipient - Performance 2. Ordained - Quality 3. Connective - Systematic work 4. Coordinative – Goal Setting 5. Collaborative – Norms setting
  • 7. Basically, accountants should consider the ethical requirements as basic principle which they should follow in performing their work
  • 8. Auditors services to clients 1. Assurance – an engagement to provide a high level of assurance that financial statement are free of material misstatement, that the audit was done in accordance with the Philippine Standard of Audit. This also includes a statutory audit required by legislation or other requirements
  • 9. Auditors services to clients 2. Professional services – services requiring accountancy or related skills which includes, but limited to financial management, financial consultancy, taxation, internal audit services, compilation of financial and others information, management consultancy, other advisory services
  • 10. ETHICAL STANDARDS FOR ACCOUNTANTS  Integrity and objectivity * Honesty, fair dealing, truthfulness * Objectivity entails one to be fair, intellectually honest and free of conflict of interest
  • 11. ETHICAL STANDARDS FOR ACCOUNTANTS  Resolution of ethical conflicts Conflict of interest infusing independence
  • 12. ETHICAL STANDARDS FOR ACCOUNTANTS  Professional competence * Attainment * Maintenance
  • 13. ETHICAL STANDARDS FOR ACCOUNTANTS  Confidentiality * Authorized * Disclosure is required by law * Professional duty or right to disclose
  • 14. ETHICAL STANDARDS FOR ACCOUNTANTS  Tax practice Cross Boarders Activities  Publicity
  • 15. In Public Practice  Independence * Independence of mind * Independence in appearance  Engagement period
  • 16. Significant observations 1, Compiler at the same time auditor of the cooperative 2. Signing of audited financial report without conducting actual audit work 3. Undertake audit engagement despite of on- going contract of service directly or significantly relevant to audit work 4. Doing retainer work while undertaking audit engagement
  • 17. Significant observations 5. Non observance of cooperative rules, regulations and practices. 6. No comments or non-inclusion of management and risk level exposure of the cooperative client.