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Unformatted text preview: ity threats include, but are not limited to: (a) A professional accountant in business in a position to influence financial or non-financial reporting or business decisions having an immediate or close family member who is in a position to benefit from that influence. (b) Long association with business contacts influencing business decisions. 97 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants [Issued January 2007] PART I: BY-LAWS ON PROFESSIONAL ETHICS (c) Acceptance of a gift or preferential treatment, unless the value is clearly insignificant. 300.12 Examples of circumstances that may create intimidation threats include, but are not limited to: (a) Threat of dismissal or replacement of the professional accountant in business or a close or immediate family member over a disagreement about the application of an accounting principle or the way in which financial information is to be reported. (b) A dominant personality attempting to influence the decision making process, for example with regard to the awarding of contracts or the application of an accounting principle. 300.13 Professional accountants in business may also find that specific circumstances give rise to unique threats to compliance with one or more of the fundamental principles. Such unique threats obviously cannot be categorized. In all professional and business relationships, professional accountants in business should always be on the alert for such circumstances and threats. 300.14 Safeguards that may eliminate or reduce to an acceptable level the threats faced by professional accountants in business fall into two broad categories: (a) Safeguards created by the profession, legislation or regulation; and (b) Safeguards in the work environment. 300.15 Examples of safeguards created by the profession, legislation or regulation are detailed in Part A. 300.16 Safeguards in the work environment include, but are not restricted to: (a) The employing organization’s systems of corporate oversight or other oversight structures. (b) The employing organization’s ethics and conduct programs. (c) Recruitment procedures in the employing organization emphasizing the importance of employing high caliber competent staff. (d) Strong internal controls. (e) Appropriate disciplinary processes. (f) Leadership that stresses the importance of ethical behaviour and the expectation that employees will act in an ethical manner. 98 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants [Issued January 2007] PART I: BY-LAWS ON PROFESSIONAL ETHICS (g) Policies and procedures to implement and monitor the quality of employee performance. (h) Timely communication of the employing organization’s policies and procedures, including any changes to them, to all employees and appropriate training and education on such policies and procedures. (i) Policies and procedures to empower and encourage employees to communicate to senior leve...
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