ETHICS WORKSHOP
Quiz 12th February 2025
Instructions:
1. You have 30 mins to answer and submit this quiz.
2. Answer all questions in the spaces provided below the
question.
3. Save your document as PDF and label using the KASNEB
registration number (Ignore the prefix NAC) e.g. 123456 and
not NAC123456.
4. Send your document using a new email to this email
address:
[email protected]Question One (6 Marks)
Distinguish between:
(a) Right and Good (2 Marks)
Right is being moral, ethical and truthfulness.
Good is associated with positive results, happiness or well being
(b) Morality and Values (2 Marks)
Morality is what define what is right or wrong in a human being.it is
normally shaped by the religion, society and culture
Values it defines what a person belief is important, desirable or
worthwhile in life. it is about individual’s upbringing, culture and
experience
(c) Normative Ethics and Meta Ethics (2 Marks)
Normative ethics :-Branch of ethics which focuses on moral standards
and determining what is right and what is wrong
Meta ethics :- It is a branch of ethics which studies the nature and
meaning of moral principles. It explain what does good or right mean.
1
Question Two (4 Marks)
Highlight FOUR types of organizational ethics that a professional
accountant should encourage his/her organization to observe.
1. Integrity and honesty
2. Professional competence
3.Honesty and data protection
4. Objectivity and independent ethics
Question Three (4 Marks)
Describe FOUR examples of threats to ethical and professional behaviour
in the branch of Management Accounting.
1. Self-interest threat: - It arises if an accountant has personal
interest which conflict with his professional duties
2. Intimidation threat:-This occurs when the management pressures
the accountant to unethical behaviour to adjust financial
statements to meet investors expectation
3.compromised objectivity: - an accountant defending unrealistic budget
3. Biased decision making :- this occurs when accountant evaluate
their own previous work
Use the case facts provided below to answer questions Four and
Five
Meza Limited is applying for approval from the Capital Markets Authority
and the Security Exchange to be listed (Initial Public Offer) on the local
stock market. Malema Audit Firm, the auditor of Meza, has been
requested by Meza Limited to prepare the accountant's report, in addition
to the audit report as part of the information in the prospectus.
Kiongozi, the audit partner in charge of transaction advisory services,
instructs Miriam, an audit senior in Malema, to prepare the report as soon
as possible. The accountant's report includes a summary of the past five
years' financial performance, position and cash flows of Meza Limited and
other analyses. Preparing the report took Miriam a short time as she
picked the figures from the audited financial statement of Meza, with
Malema having audited the figures for the past three years. She also
adjusted the figures for new and revised International Financial Reporting
Standards (IFRSs) to make the financial statements over the five years
comparable.
When she submitted the report to Kiongozi, Kiongozi reviewed the work
and was pleased with Miriam for taking a short time to prepare the report.
However, Kiongozi was concerned that the performance of Meza Limited
was not as good enough for Meza to obtain the relevant approvals. The
financial performance and position were dampened by the adjustments
2
made by Miriam. Kiongozi requests Miriam to revert to the previous
financials that reflected a better performance and position for Meza.
Miriam declines to make the revisions, citing professional ethics. Kiongozi
decides to do the report himself, retaining the initial audited figures and
then submitted them to Meza Limited for inclusion in the prospectus.
Kiongozi includes Miriam, as part of the team that prepared the
accountant and the audit reports.
Question Four (2 Marks)
Provide TWO principles of the code that Kiongozi may have violated.
1. intergrity
2.principal of objectivity
Question Five (4 Marks)
Discuss TWO actions that Miriam can take as per the professional code of
conduct for accountants.
1. Report to ICPAK
2. Refuse to sign the report
