Accrual accounting provides opportunities for unethical behaviour’ (Nobles et al 2016, page 127) (i.e., the prescribed textbook).Guidance on ethical behaviour, in particular, on the fundamental principles of professional ethics for accountants, can be found in authoritative documents such as APES 110 Code of Ethics for Professional AccountantsRequirements1. Explain what is meant by unethical behaviour for accountants in general and specifically in relation to accrual accounting. (6 marks)2. Identify two cases as appearing in either the media (i.e., newspapers, e.g., The Financial Review), professional accounting journals (e.g., the CPA’s In the Black) or academic accounting/business ethics journals (e.g.,Australian Accounting Review) that show how accrual accounting can be used for unethical behaviour. Your two cases do not need to relate to two separate business entities. Your must reference your sources in your list of references – which will be checked by the marker. (2 x 5 marks = 10 marks).
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