340 financial interests financial interests 3401

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Unformatted text preview: ued January 2007] PART I: BY-LAWS ON PROFESSIONAL ETHICS (b) (c) Consultation, where appropriate, with superiors within the employing organization. (d) Consultation, where appropriate, with those charged with the governance of the employing organization or relevant professional bodies. (e) Internal and external audit procedures. (f) 340.4 Disclosure of all relevant interests and of any plans to trade in relevant shares to those charged with the governance of the employing organization, in accordance with any internal policies. Up-to-date education on ethical issues and the legal restrictions and other regulations around potential insider trading. A professional accountant in business should neither manipulate information nor use confidential information for personal gain. 107 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants [Issued January 2007] PART I: BY-LAWS ON PROFESSIONAL ETHICS Section 350 Inducements Receiving Offers 350.1 A professional accountant in business or an immediate or close family member may be offered an inducement. Inducements may take various forms, including gifts, hospitality, preferential treatment and inappropriate appeals to friendship or loyalty. 350.2 Offers of inducements may create threats to compliance with the fundamental principles. When a professional accountant in business or an immediate or close family member is offered an inducement, the situation should be carefully considered. Self- interest threats to objectivity or confidentiality are created where an inducement is made in an attempt to unduly influence actions or decisions, encourage illegal or dishonest behaviour or obtain confidential information. Intimidation threats to objectivity or confidentiality are created if such an inducement is accepted and it is followed by threats to make that offer public and damage the reputation of either the professional accountant in business or an immediate or close family member. 350.3 The significance of such threats will depend on the nature, value and intent behind the offer. If a reasonable and informed third party, having knowledge of all relevant information, would consider the inducement insignificant and not intended to encourage unethical behaviour, then a professional accountant in business may conclude that the offer is made in the normal course business and may generally conclude that there is no significant threat to compliance with the fundamental principles. 350.4 If evaluated threats are other than clearly insignificant, safeguards should be considered and applied as necessary to eliminate them or reduce them to an acceptable level. When the threats cannot be eliminated or reduced to an acceptable level through the application of safeguards, a professional accountant in business should not accept the inducement. As the real or apparent threats to compliance with the fundamental principles do not merely arise from acceptance of an inducement but, sometimes, merely...
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This document was uploaded on 09/23/2013.

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