With any internal policies up to date education on

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Unformatted text preview: from the fact of the offer having been made, additional safeguards should be adopted. A professional accountant in business should assess the risk associated with all such offers and consider whether the following actions should be taken: (a) Where such offers have been made, immediately inform higher levels of management or those charged with governance of the employing organization; 108 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants [Issued January 2007] PART I: BY-LAWS ON PROFESSIONAL ETHICS (b) Inform third parties of the offer – for example, a professional body or the employer of the individual who made the offer; a professional accountant in business should, however, consider seeking legal advice before taking such a step; (c) Advise immediate or close family members of relevant threats and safeguards where they are potentially in positions that might result in offers of inducements, for example as a result of their employment situation; and (d) Inform higher levels of management or those charged with governance of the employing organization where immediate or close family members are employed by competitors or potential suppliers of that organization. Making Offers 350.5 A professional accountant in business may be in a situation where the professional accountant in business is expected to, or is under other pressure to, offer inducements to subordinate the judgment of another individual or organization, influence a decision-making process or obtain confidential information. 350.6 Such pressure may come from within the employing organization, for example, from a colleague or superior. It may also come from an external individual or organization suggesting actions or business decisions that would be advantageous to the employing organization possibly influencing the professional accountant in business improperly. 350.7 A professional accountant in business should not offer an inducement to improperly influence professional judgment of a third party. 350.8 Where the pressure to offer an unethical inducement comes from within the employing organization, the professional accountant should follow the principles and guidance regarding ethical conflict resolution set out in Part A. 109 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants [Issued January 2007] PART II: BY-LAWS ON PROFESSIONAL CONDUCT AND PRACTICE EXPLANATORY FOREWORD 1. Part II of the By-Laws of the Institute consists of the By-Laws on Professional Conduct and Practice. The By-Laws on Professional Conduct and Practice sets out the obligations applicable to all members as professional accountants or to member firms in respect of their professional conduct or the practice of their firms. 2. Part II of the By-Laws has been framed with the objective that members exhibit the highest standards of professionalism and professional conduct that are expected of the profession, when dealing with...
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