1. A code of ethics does not give right or wrong answers to ethical issues, so w

Question

1. A code of ethics does not give right or wrong answers to ethical issues, so what value does it serve? 5 marks 2. Why should backup schedules be reviewed and why is undertaking such a practice important? 8 marks 3. Select a large organisation with which you are familiar and identify the cost centres or sections. If you cannot identify a large organisation create a fictional one and describe its functions and the cost centres or sections it utilises. Using the organisation you have chosen select the cost centres or sections that you would involve in a budget planning process. If there are some that you would not involve explain why you believe that they should not be included. How would you involve those sections in the process and at what stage would their involvement begin? Detail the communication strategies that would be used with each section. What information might you require from the different sections and how will that information be used? 15 marks 2 4. 5. 6. What is the importance of collecting, maintaining and providing accurate reports? 9 marks What is the purpose of calculating overheads, and how should it be done? Provide an example. 8 marks Explain the relevance of Australian Standard: Record Management to maintaining management accounting information. 5 marks Reconciling the GST control accounts is different for accrual based accounting and cash accounting. When reconciling the GST control accounts, with what would outstanding GST be reconciled in each case? 4 marks 7. 8. Describe the process of collating, coding, and classifying data in preparation for processing.

Explanation / Answer

1.

Code of ethics is those principles that guide the professionals to undertake their business or profession in an ethical manner that blends honesty with integrity. Code of ethics in an Organization refers to the universal adherence of the principles across the Organization and therefore it shall help the management to guide them doing the right things. Agree, that there could not be any right or wrong answers to ethical issues but at least the Code of ethics could help the employees to frame an outline of what could be regarded as ethical while dealing with the issues of ethical dilemma. In fact, this set of ethics when defined as a code, could be imposed upon an Organization by way of Organizational mission and vision statement that regards in itself the overall Organizational values. This in turn, could help the employees be guided towards the ethical path even without giving no answers to the ethical issues in a direct manner.

Code of ethics could therefore serve an important value if it could be incorporated in the HR policies to govern unethical behavior apart from a definite program of Corporate Governance to take care of the legal issues pertaining into the Organizational activities. For example, Business firms have to operate profitably or they will not survive over the long term; that is their economic performance. Here, the code of ethics helps in sorting out the ethical dilemmas for the leaders undertaking this activity. Further, various types of audits could be conducted to ensure its application in the Organization in the following ways:

Draw up on ethical code in the system

Familiarize employees with the ethical code

Ensure implementation

Formation of Ethics committee

The value could also be comprehended with the fact that there has been an urgent call for laws that enforces ethical codes. In this regard, we already have Sarbanes-Oxley Act that came into existence in response to the public outcry for the financial misconduct of the Public companies as faced by the shareholders and public. Accordingly, this Act became part of the US Federal law that emphasizes upon the Corporate responsibility, transparency in business and the Auditing accountability of the Public companies, as an expansion of the already existing accounting acts that govern the activities undertaken by the Public companies. Putting into force this act does not mean that the codes of ethics are no longer necessary. Rather it shall complement the current existence of the codes in a major way. As a matter of fact, when abiding by this act, most of the part of code of ethics is formally covered in it but for the further enhancing of a Corporate image and for the implementing the strategies of Corporate Social Responsibility, putting Code of Ethics into practice shall be essential.

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