Integity

Current Practice     | Principle Breached     | Recommended Practice     |
  Finance Director has decided that payments to suppliers should not be paid in the months ending quarter. As a result of his actions quarterly reports look better by reducing the company's overdraft at the end of the quarter.     | Integrity   The principle of the integrity of the states that member of the accountant will be a simple and honest in all professional and business relationships. This means that the professional accountant shall not knowingly be associated with reports, messages and other information contained in the reports prepared by him.     |   Chic Paint Ltd should manage sincerely drawn up reports on the financial situation and look for complying with ethical ways to reduce the overdraft     |
      | Objectivity   The principle of objectivity determines that the information of accounting and financial reporting should be independent and impartial substantiated. This means that the accounting information must be based on research and facts and not on the opinion of the person preparing it. The principle of objectivity makes the resulting financial statements are more relevant and reliable.     |       |
    The Accounts Receivable Clerk and Credit Controller does not have the necessary qualifications to perform their duties with regard to credit control. The employee cannot guarantee the duties performed by him are supported by theoretical and practical knowledge     | Professional competence   and due care   This principle means that the professional accountant has an obligation to maintain professional knowledge and skill at the level required to ensure a professional service based on current developments in the field of legal and technical. This means that the professional accountant should act fairly and in accordance with applicable technical and professional standards.     |     Accounts Receivable Clerk and Credit Controller should consider the possibility of...