How the principles of ethical behaviour impact the behaviour of accounting professionals and organisations: role of accountant in business and public practice; role and composition of board of directors; role of auditors and the audit report; role and composition of remittance committee; corporate governance; corporate social responsibility
Ethical principles shape how accountants, auditors, and company boards behave. Structures like corporate governance and social responsibility keep organisations honest and accountable.
Real World
After the 2008 financial crisis, RBS's board was criticised for poor corporate governance — directors had approved excessive risk-taking without adequate challenge, showing how a weak board composition can allow ethical principles to break down at the highest level.
Exam Focus
Questions on corporate governance often ask you to 'evaluate' — make sure you argue both how structures enforce ethical behaviour and their limitations when directors act in self-interest.
Essay Framework
Use PEEL to structure every paragraph. Tap each step for guidance and an example.
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