But are not limited to a threat of dismissal or

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Unformatted text preview: ls within the employing organization any ethical issues that concern them without fear of retribution. (j) Consultation with another appropriate professional accountant. 300.17 In circumstances where a professional accountant in business believes that unethical behaviour or actions by others will continue to occur within the employing organization, the professional accountant in business should consider seeking legal advice. In those extreme situations where all available safeguards have been exhausted and it is not possible to reduce the threat to an acceptable level, a professional accountant in business may conclude that it is appropriate to resign from the employing organization. 99 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 310 Potential Conflicts Potential Conflicts 310.1 A professional accountant in business has a professional obligation to comply with the fundamental principles. There may be times, however, when their responsibilities to an employing organization and the professional obligations to comply with the fundamental principles are in conflict. Ordinarily, a professional accountant in business should support the legitimate and ethical objectives established by the employer and the rules and procedures drawn up in support of those objectives. Nevertheless, where compliance with the fundamental principles is threatened, a professional accountant in business must consider a response to the circumstances. 310.2 As a consequence of responsibilities to an employing organization, a professional accountant in business may be under pressure to act or behave in ways that could directly or indirectly threaten compliance with the fundamental principles. Such pressure may be explicit or implicit; it may come from a supervisor, manager, director or another individual within the employing organization. A professional accountant in business may face pressure to: (a) Act contrary to law or regulation. (b) Act contrary to technical or professional standards. (c) Facilitate unethical or illegal earnings management strategies. (d) Lie to, or otherwise intentionally mislead (including misleading by remaining silent) others, in particular, the auditors of the employing organization or regulators. (e) Issue, or otherwise be associated with, a financial or non-financial report that materially misrepresents the facts, including statements in connection with, for example: − − Tax compliance; − Legal compliance; or − 310.3 The financial statements; Reports required by securities regulators. The significance of threats arising from such pressures, such as intimidation threats, should be evaluated and, if they are other than clearly insignificant, safeguards should be considered and applied as necessary to eliminate them or reduce them to an acceptable level. Such safeguards may include: 100 By-Laws (On Professional Ethics, Condu...
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