Ethics is a system or code based on moral duties obligations that indicate how an individual should behave. A professional accountant should observe and comply with the ethical requirement of the By-Laws that have been framed with the objective that members exhibit the highest standards of professionalism and professional conduct that are expected of the profession.
One of the roles of professional accountants in relation to their compliance to the By-Laws of the Malaysian Institute of Accountants as in this Chicken Run case is integrity. Integrity means members of accountants shall at all time be straightforward, honest and sincere. They must perform their work with diligence, responsibility, and complete sincere truthfulness. Auditor should not involve in any illegal activities that could bring down their reputation. Based on this case, the professional accountants should always check the financial statement of the company so that the information in the financial statement has fairly presented. This can be seen where Encik Munir, one of the former staff at the finance department, did not do his work honestly. He may have taken the money paid by the customer to him as he is the only person in charge in receiving payment from customer. This is said so because the confirmation letters from the creditors figures did not tie up with the balances in the accounts.
Secondly is objectivity. Objectivity is also one of the roles of professional accountants in relation to their compliance to the By-Laws of the Malaysian Institute of Accountants. Objectivity means that an auditor must be independent in appearance and in fact, and also to be unbiased and impartial. In order for the auditor to be independent, they should not have any financial or managerial relationship with anyone or anything that has to do with the company being audited. As in this case, the professional accountants have to be objectivity in evaluating the going concern issue. They must...
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