Case Study: 'Unsupported Expenses'. You are the Finance Director of an organisation. You become concerned that the Chief Executive is making frequent overseas trips and charging the expense to the organisation, including a recent trip to Hawaii. The relevance of the destinations and the nature of the activities undertaken appear to have only partial relevance to your organisation's activities. You raise your concerns with the Chief Executive, who gives assurances that the nature and purpose of these trips is covered by an 'understanding' with the organisation's Chairman. This is not evidenced in writing, and no further justification for the expenses is forthcoming.
Problem 1: As the Finance Director, explain how you would act to resolve this situation, by referring to at least three of the following key fundamental principles from the IESBA Code of Ethics:
- Integrity
- Objectivity
- Professional Competence and Due Care
- Professional Behaviour
- There is no formal word limit for problem 1
- Your written response should be approximately 300 - 500 words
Problem 2: For exchange listed companies, discuss the importance of maintaining professional ethics in the workplace. Your answer must refer to appropriate professional sources and academic theory.
- Your written response for problem 2 must be between 850 - 1,000 words
- Your answer should refer to Agency Theory and/or Stakeholder Theory
APA 6TH edition referencing
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