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Case Study of Ethics

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Ethical Dilemmas
Case Studies
Professional Accountants in Business
December 20112
Contents
Introduction ...............................................................................................................................3
Case Study 1...............................................................................................................................5
Pressure to overstate stock valuation ...................................................................................5
Case Study 2...............................................................................................................................7
Pressure to participate in fraudulent …show more content…

Threats may arise as a result of any of the following:4
• self-interest: the threat that a financial or other interest will inappropriately influence your judgement or behaviour
• self-review: the threat that you will not properly evaluate the results of a previous judgement made or service performed by you (or someone else within the organisation) when forming a judgement as part of providing a current service
• advocacy: the threat that you will promote a position (usually your employer’s) to the point that your objectivity is compromised
• familiarity: the threat that, due to a long or close relationship with someone, you will be too sympathetic to that person’s interests, or too accepting of their work
• intimidation: the threat that you will be deterred from acting objectively because of actual or perceived pressures, including attempts to exercise undue influence over you. When resolving an ethical conflict, consider carefully whether other parties could or should be involved in discussions and, if appropriate, how those parties should be approached. You should keep in mind confidentiality obligations. If you are facing, or think you might be facing, an ethical dilemma, you may wish to seek advice from a trusted colleague within the organisation, your professional body or an independent lawyer.
You should take care to ensure

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