Text 4 professional ethics of accountants

Exercise 4.1

Study the vocabulary:

1	belief	1	переконання, віра
2	code	2	кодекс
3	conduct	3	поведінка
4	common	4	загальний
5	competence	5	компетентність
6	confidentiality	6	конфіденційність, секретність
7	the performance of duties	7	виконання обов’язків
8	to discredit	8	дискредитувати, ганьбити
9	to differ in meaning	9	розрізнятися по значенню
10	integrity	10	чесність, непідкупність
11	guide	11	керівник, порадник, провідний принцип
12	guidance	12	керівництво
13	favour	13	підтримка, сприяння
14	to maintain	14	підтримувати, відстоювати/захищати думку
15	to outline	15	намічати (у загальних рисах)
16	obligation	16	забов’язання
17	outperform	17	обігнати за показниками, робити краще ніж хтось
18	reward	18	винагороджувати
19	to sacrifice one’s interests	19	жертвувати своїми інтересами
20	ethical behavior suggests	20	етична поведінка припускає
21	Suffice it to say	21	достатньо сказати
22	Sensitive matters	22	делікатні питання

Exercise 4.2

Read the text:

Just like any other professional group, accountants have got their own ethics code. In different countries of the world these codes are generally worked out by professional accounting bodies and used as a guide for accountants in the performance of their duties. Ethics codes are generally based on the international ethical standards set by the International Federation of Accountants. The currently used ethics code was adopted by the IFA in 1998.

Naturally, professional ethics is closely connected with the common norms of ethical behaviour. Ethical behaviour involves choosing actions that are right, proper and just. As a rule, people differ in their views of the meaning of ethical terms. However there is a common principle underlying all ethical norms, this principle is expressed by the belief that ethical behaviour suggests willingness to sacrifice one's interests.

Sacrificing one's self-interest for the well-being of other people can be good in a business sense. Suffice it to say, that companies with high ethical standards outperform on the market. The market may therefore reward integrity and ethical conduct. Ethical standards are usually affected by cultural factors and, as such, may vary across the world. That holds true for professional codes of accountants as well. However, in all the countries of the world professional codes of accountants have much in common.

The Ukrainian ethics code outlines the accountant's responsibilities and ethical standards. Thus, all the accountants have an obligation to the organization they serve, their profession, the public and themselves. They are to maintain a high level of professional competence. This is generally done by the development of their knowledge and skills. Apart from that, accountants are to perform their duties in accordance with relevant laws and regulations. The preparation of clear and complete reports must be done after analyses of relevant and reliable information and for sensitive matters they should be treated with confidentiality.

What is more important, accountants are to maintain personal integrity. They must refrain from engaging or supporting any activity that would discredit the profession. They are also to be objective, because they have a responsibility to communicate information fairly and objectively.

It should be said that most of these ethical rules are motivated by practical considerations. They are of great importance.

Exercise 4.3

Choose the best variant:

1. Like any other professional group, accountants have got …

1. very big salary

2. their own ethics code

3. their own responsibilities

2. Ethics codes are generally based on …

1. the international ethical standards

2. human consideration

3. common belief

3. Professional ethics is closely connected with…

1. personal desires and intentions

2. inclinations

3. the common norms of ethical behavior

4. Ethical standards are usually affected by …

1. national peculiarities

2. cultural factors

3. natural appearances

5. The Ukrainian ethics code outlines …

1. the accountants’ responsibilities and ethical standards

2. the accountants’ needs and wants

3. the accountants’ need in money

Exercise 4.4

Read the first part of the text again and fill in the gaps, then translate:

a)	belief	f)	common
b)	standards	g)	outperform
c)	self-interest	h)	code
d)	behavior	i)	norms
e)	views	j)	accounting bodies

Just like any other professional group, accountants have got their own ethics 1…. In different countries of the world these codes are generally worked out by professional 2… … and used as a guide for accountants in the performance of their duties. Ethics codes are generally based on the international ethical 3… set by the International Federation of Accountants. The currently used ethics code was adopted by the IFA in 1998.

Naturally, professional ethics is closely connected with the 4 … …of ethical behaviour. Ethical behaviour involves loosing actions that are right proper and just. As a rule, people differ in their …5 of the meaning of ethical terms. However there is a common principle underlying all ethical …6, this principle is expressed by the …7 that ethical …8 suggests willingness to sacrifice one's interests.

Sacrificing one's …9for the well-being of other people can be good in a business sense. Suffice it to say, that companies with high ethical standards …10 on the market.

Exercise 4.5

Read, translate and remember:

The Ukrainian ethics code outlines the accountant's responsibilities and ethical standards.

• Thus, all the accountants have an obligation to the organization they serve, their profession, the public and themselves.

• They are to maintain a high level of professional competence. This is generally done by the development of their knowledge and skills.

• Apart from that, accountants are to perform their duties in accordance with relevant laws and regulations.

• The preparation of clear and complete reports must be done after analyses of relevant and reliable information and for sensitive matters they should be treated with confidentiality.

• What is more important, accountants are to maintain personal integrity.

• They must refrain from engaging or supporting any activity that would discredit the profession.

• They are also to be objective, because they have a responsibility to communicate information fairly and objectively.

Exercise 4.6

Read the whole text again and choose the best answer:

1. What have the accountants got?

1. Their own ethic codes

2. Their own likes and dislikes

2. Do you agree that ethics codes are worked out by accounting bodies?

1. Yes;

2. No;

3. What does ethical behavior involve?

1. actions that are right, proper and just;

2. actions that are inadequate;

3. actions that are selfish and self-centered

4. What are ethical standards usually affected by?

1. natural phenomena;

2. cultural factors.

5. In all the countries of the world professional codes of accountants…

1. have nothing in common;

2. have little in common;

3. have much in common.

6. How can a high level of professional competence be maintained?

1. This can be done by getting fit.

2. This can be done by attending courses.

3. This can be done by the development of their knowledge and skills.

7. Do the accountants have to be objective and fair?

1. Yes;

2. No.