PROFESSIONAL ETHICS OF ACCOUNTANTS
Exercise 4.1
Study the vocabulary:
| belief | переконання, віра | ||
| code | кодекс | ||
| conduct | поведінка | ||
| common | загальний | ||
| competence | компетентність | ||
| confidentiality | конфіденційність, секретність | ||
| the performance of duties | виконання обов’язків | ||
| to discredit | дискредитувати, ганьбити | ||
| to differ in meaning | розрізнятися по значенню | ||
| integrity | чесність, непідкупність | ||
| guide | керівник, порадник, провідний принцип | ||
| guidance | керівництво | ||
| favour | підтримка, сприяння | ||
| to maintain | підтримувати, відстоювати/захищати думку | ||
| to outline | намічати (у загальних рисах) | ||
| obligation | забов’язання | ||
| outperform | обігнати за показниками, робити краще ніж хтось | ||
| reward | винагороджувати | ||
| to sacrifice one’s interests | жертвувати своїми інтересами | ||
| ethical behavior suggests | етична поведінка припускає | ||
| Suffice it to say | достатньо сказати | ||
| Sensitive matters | делікатні питання |
Exercise 4.2
Read the text:
Just like any other professional group, accountants have got their own ethics code. In different countries of the world these codes are generally worked out by professional accounting bodies and used as a guide for accountants in the performance of their duties. Ethics codes are generally based on the international ethical standards set by the International Federation of Accountants. The currently used ethics code was adopted by the IFA in 1998.
Naturally, professional ethics is closely connected with the common norms of ethical behaviour. Ethical behaviour involves choosing actions that are right, proper and just. As a rule, people differ in their views of the meaning of ethical terms. However there is a common principle underlying all ethical norms, this principle is expressed by the belief that ethical behaviour suggests willingness to sacrifice one's interests.
Sacrificing one's self-interest for the well-being of other people can be good in a business sense. Suffice it to say, that companies with high ethical standards outperform on the market. The market may therefore reward integrity and ethical conduct. Ethical standards are usually affected by cultural factors and, as such, may vary across the world. That holds true for professional codes of accountants as well. However, in all the countries of the world professional codes of accountants have much in common.
The Ukrainian ethics code outlines the accountant's responsibilities and ethical standards. Thus, all the accountants have an obligation to the organization they serve, their profession, the public and themselves. They are to maintain a high level of professional competence. This is generally done by the development of their knowledge and skills. Apart from that, accountants are to perform their duties in accordance with relevant laws and regulations. The preparation of clear and complete reports must be done after analyses of relevant and reliable information and for sensitive matters they should be treated with confidentiality.
What is more important, accountants are to maintain personal integrity. They must refrain from engaging or supporting any activity that would discredit the profession. They are also to be objective, because they have a responsibility to communicate information fairly and objectively.
It should be said that most of these ethical rules are motivated by practical considerations. They are of great importance.
Exercise 4.3
Choose the best variant:
1. Like any other professional group, accountants have got …
a) very big salary
b) their own ethics code
c) their own responsibilities
2. Ethics codes are generally based on …
a) the international ethical standards
b) human consideration
c) common belief
3. Professional ethics is closely connected with…
a) personal desires and intentions
b) inclinations
c) the common norms of ethical behavior
4. Ethical standards are usually affected by …
a) national peculiarities
b) cultural factors
c) natural appearances
5. The Ukrainian ethics code outlines …
a) the accountants’ responsibilities and ethical standards
b) the accountants’ needs and wants
c) the accountants’ need in money
Exercise 4.4
Read the first part of the text again and fill in the gaps, then translate:
| a) | belief | f) | common |
| b) | standards | g) | outperform |
| c) | self-interest | h) | code |
| d) | behavior | i) | norms |
| e) | views | j) | accounting bodies |
Just like any other professional group, accountants have got their own ethics 1…. In different countries of the world these codes are generally worked out by professional 2… … and used as a guide for accountants in the performance of their duties. Ethics codes are generally based on the international ethical 3… set by the International Federation of Accountants. The currently used ethics code was adopted by the IFA in 1998.
Naturally, professional ethics is closely connected with the 4 … …of ethical behaviour. Ethical behaviour involves loosing actions that are right proper and just. As a rule, people differ in their …5 of the meaning of ethical terms. However there is a common principle underlying all ethical …6, this principle is expressed by the …7 that ethical …8 suggests willingness to sacrifice one's interests.
Sacrificing one's …9for the well-being of other people can be good in a business sense. Suffice it to say, that companies with high ethical standards …10 on the market.
Exercise 4.5
Read, translate and remember:
The Ukrainian ethics code outlines the accountant's responsibilities and ethical standards.
Ø Thus, all the accountants have an obligation to the organization they serve, their profession, the public and themselves.
Ø They are to maintain a high level of professional competence. This is generally done by the development of their knowledge and skills.
Ø Apart from that, accountants are to perform their duties in accordance with relevant laws and regulations.
Ø The preparation of clear and complete reports must be done after analyses of relevant and reliable information and for sensitive matters they should be treated with confidentiality.
Ø What is more important, accountants are to maintain personal integrity.
Ø They must refrain from engaging or supporting any activity that would discredit the profession.
Ø They are also to be objective, because they have a responsibility to communicate information fairly and objectively.
Exercise 4.6
Read the whole text again and choose the best answer:
1. What have the accountants got?
a) Their own ethic codes
b) Their own likes and dislikes
2. Do you agree that ethics codes are worked out by accounting bodies?
a) Yes;
b) No;
3. What does ethical behavior involve?
a) actions that are right, proper and just;
b) actions that are inadequate;
c) actions that are selfish and self-centered
4. What are ethical standards usually affected by?
a) natural phenomena;
b) cultural factors.
5. In all the countries of the world professional codes of accountants…
a) have nothing in common;
b) have little in common;
c) have much in common.
6. How can a high level of professional competence be maintained?
a) This can be done by getting fit.
b) This can be done by attending courses.
c) This can be done by the development of their knowledge and skills.
7. Do the accountants have to be objective and fair?
a) Yes;
b) No.
TEXT 5
WHAT SHOULD A MODERN
ACCOUNTANT BE LIKE?
Exercise 5.1
Study the vocabulary:
| 1. solution | 1. рішення (проблеми і. т.д.) |
| 2. current | 2. поточний |
| 3. horizon on the horizon | 3. горизонт; на горизонті |
| 4. urgent | 4. терміновий; настійний, наполегливий |
| 5. a poll to conduct a poll | 5. опитування; соціологічне дослідження; проводити соціологічне опитування |
| 6. to reveal | 6. виявляти; відкривати |
| 7. controller assistant controller(A.C.) | 7. контролер, головний бухгалтер – контролер; замісник головного бухгалтера – контролера |
| 8. the latter the former | 8. останній, інший (з двох перерахованих); перший (перший) з перерахованих |
| 9. concise | 9. стислий, скорочений |
| 10. favour in favour of | 10. підтримка, допомога; на користь когось, чогось |
Exercise 5.2 Match the words with their meanings:
| 1. solution | a) перший з перерахованих |
| 2. current | b) підтримка, допомога |
| 3. urgent | c) останній, інший (з двох перерахованих) |
| 4. a poll | d) виявляти; відкривати |
| 5. to reveal | e) опитування; соціологічне дослідження |
| 6. controller | f) терміновий; настійний, наполегливий |
| 7. the latter | g) контролер, головний бухгалтер – контролер |
| 8. the former | h) рішення (проблеми і. т.д.) |
| 9. concise | i) стислий, скорочений |
| 10. favour | j) поточний |
Exercise 5.3
Read and translate the text:
In all countries of the world the complexity of economic activity is gradually growing. And this, in its turn, leads to an increasingly important role of accounting as a function of economic management. At present the necessity of improving accounting through raising its operational utility and quality is regarded as one of the most important tasks.
The main condition for the solution of this task is improving the quality of accounting personnel. To attract able young people to the study of accounting, to raise its prestige and demonstrate its importance is an urgent task in many countries of the world.
What do accountants think of the current state of accounting education? How well are students prepared for the profession? What changes are on the horizon and will these changes produce better educated accountants? To answer these questions a poll was conducted in the USA.
A lot of the US professionals have been asked to share their views on these issues and to comment on the value of accountancy programmes. In all about 140 accountants have been interviewed. Their positions ranged from higher level management accountants to assistant controllers. The interviews revealed that the majority favoured radical reconstruction of accounting education. All agreed that there should be new programmes setting the foundation for understanding all aspects of accounting. Most respondents were concerned with the fact that the majority of accounting graduates lack computer skills and oral and written communication skills. Several respondents stated that inadequate computer skills are becoming more noticeable as the demand for computer knowledge grows. Many respondents emphasised that the lack of good communication skills is the most serious deficiency of graduates. Students in accounting are sure to submit short papers to develop writing skills because as future managers they must be able to write concise reports. Other respondents dealt with personality characteristics of the graduates. Many respondents indicated that graduates lack self-motivation and enthusiasm. Some stated that graduates have a lack of common sense.
Many spoke in favour of strong conceptual over a practical approach to learning because understanding concepts is critical to coping with the dynamic nature of accounting problems. All academics (78%) agree that there should be additional emphasis on conceptual knowledge. However accounting managers favoured a practical approach as did most low level participants.
Exercise 5.4
Read the text again and choose the best variant:
1. In all countries of the world the complexity of economic activity…
a) is gradually growing.
b) is gradually declining.
c) is practically the same.
2) At present the necessity of improving accounting is regarded as…
a) one of the least important tasks.
b) the last task.
c) one of the most important tasks.
3) An urgent task in many countries of the world is…
a) to attract able young people to the study of cybernetics.
b) to attract able young people to the study of accounting.
c) to attract able young people to the study of national traditions.
4) The interviews revealed that the majority favoured…
a) radical reconstruction of accounting education.
b) slight reconstruction of accounting education.
c) no reconstruction of accounting education.
5)Many respondents indicated that graduates lack…
a) self registering and enthusiasm.
b) sense of humor and enthusiasm.
c) self-motivation and enthusiasm.
Exercise 5.5
Fill in the gaps. Then read and translate:
1. enadequate - недостатній
2. deficiency - нестача
| deficiency reports computer skills managers communication inadequate accounting |
Most respondents were concerned with the fact that the majority of accounting graduates lack …1… and oral and written …2…skills. Several respondents stated that …3… computer skills are becoming more noticeable as the demand for computer knowledge grows. Many respondents emphasised that the lack of good communication skills is the most serious …4…of graduates. Students in …5… are sure to submit short papers to develop writing skills because as future …6…they must be able to write concise …7….
Exercise 5.6
Read the text again to find out which of the following statements are correct:
1. In Eastern Europe the complexity of economic activity is gradually growing.
2. At present the necessity of improving accounting through raising its operational utility and quality is regarded as one of the most important tasks.
3. The main condition for the solution of this task is improving the quality of accounting computer programs.
4. In all about 140 accountants have been interviewed.
5. The interviews revealed that the majority favored radical reconstruction of accounting education.
6. Most respondents were concerned with the fact that the majority of accounting graduates have excellent computer skills and oral and written communication skills.
7. Many respondents emphasised that the lack of good communication skills is the most serious deficiency of graduates.
8. Many respondents indicated that graduates are self-motivated and full of enthusiasm.
Exercise 5.7
Read the text again and put the sentences into a chronological order:
1. The positions of respondents ranged from higher level management accountants to assistant controllers.
2. Several respondents stated that inadequate computer skills are becoming more noticeable as the demand for computer knowledge grows.
3. At present the necessity of improving accounting through raising its operational utility and quality is regarded as one of the most important tasks.
4. A lot of the US professionals have been asked to share their views on these issues and to comment on the value of accountancy programmes.
5. However accounting managers favoured a practical approach as did most low level participants.
6. To attract able young people to the study of accounting, to raise its prestige and demonstrate its importance is an urgent task in many countries of the world.
TEXT 6
WHAT KINDS OF PEOPLE
MAKE GOOD ACCOUNTANTS?
Exercise 6.1
Study the vocabulary:
| comprehension | розуміння | ||
| figure | цифра | ||
| basic mathematical concepts | основні математичні поняття | ||
| reasonably | розумно, прийнятно | ||
| sufficient | достатній, обґрунтований | ||
| to keep track | відслідковувати | ||
| strand | нитка, напрямок | ||
| to disentangle | виплутувати, звільняти | ||
| crucial | ключовий, значущий, важливий | ||
| confidence | впевненість | ||
| professional judgement | професійна думка (оцінка, погляд) | ||
| a sweat-shirt | бавовняна трикотажна сорочка | ||
| self-assured | самовпевнений syn. self-confident | ||
| spiky hair | кудлате волосся | ||
| be swayed | бути під впливом | ||
| coherent | логічний, послідовний | ||
| consistent | послідовний |
Exercise 6.2
Read and translate the text:
You are unlikely to make a good accountant if you think that arithmetic and maths are beyond your comprehension. But that does not mean that mathematical geniuses make the best accountants. They almost certainly do not, as you have to be interested in other things besides figures and calculations. If you are reasonably at home with basic mathematical concepts, and know how to use a calculator, that should be sufficient.
Another important quality is the ability to think clearly, and keep track of many different strands in what may be a confused mass of figures. If you can keep hold of the various strands, and disentangle them so as to present a coherent picture that is consistent, you should be able to acquire the necessary techniques for compiling and presenting accounts. A liking of crosswords and other puzzles is probably a good indication of analytical skills which are crucial for accountants.
Then you must be able to put down your thoughts and conclusions simply and clearly, so that they can be understood not only by other accountants, but also clients or management without accountancy training. All the accountancy qualifications lay great stress on this skill, perhaps because it is rather unexpected. Figures alone are no use, but it is essential for the message they carry to be communicated properly.
Traditions are known to die hard in most professions, and accountancy is no exception as far as appearance is concerned. You are most likely to be expected to wear a suit at work rather than jeans and a sweat-shirt, and you would have to be extraordinarily brilliant or self-assured, to get away with spiky hair in an office. But paradoxically, good accountants should not be too conformist in their thinking. They have to know their own mind and have confidence in their professional judgment. It is essential that the advice they give should be impartial like their accounts. They should not be swayed by what their clients may want to hear.
In a word, it is not easy to put the qualities of a good accountant in a nutshell. Some of them are inborn; others must be acquired by education and experience. Among the most important of that sort of qualities are the following: a good knowledge of accounting and the ability to apply its principles in practical life; a broad general outlook and understanding of economic trends and events; responsibility, decision-making ability, the knowledge of accounting techniques; the ability to get on with colleagues, personnel and people in general.
Exercise 6.3
Read the text again and choose the best variant:
1. Mathematical geniuses…
a) make the best accountants
b) don’t make the best accountants
c) always make the best accountants
2. A good accountant must be able to put down his thoughts and conclusions…
a) quickly
b) slowly
c) simply and clearly
3) An accountant is expected to wear …
a) jeans and a sweat-shirtat work
b) a suit at work
c) it doesn’t matter what at work
4) Accountants have to…
a) know their own mind and have confidence in their professional judgment
b) be conformists in their thinking
c) to be swayed by what their clients may want to hear
5) It is essential that the advice the accountants give…
a) should be partial
b) should be impartial
Exercise 6.4
Read the first part of the text again and fill in the gaps. Then read and translate:
You are unlikely to make a good …1… if you think that arithmetic and maths are beyond your …2… . But that does not mean that …3… geniuses make the best accountants. They almost certainly do not, as you have to be interested in other things besides figures and …4… . If you are reasonably at home with basic mathematical concepts, and know how to use a calculator, that should be …5… .
Another important quality is the …6… to think clearly, and keep track of many different …7… in what may be a confused mass of figures. If you can keep hold of the …8… strands, and disentangle them so as to present a coherent picture that is consistent, you should be able to acquire the necessary …9… for compiling and presenting accounts. A liking of crosswords and other puzzles is probably a good indication of analytical skills which are …10…for accountants.
Exercise 6.5
Read, translate and remember:
In a word, it is not easy to put the qualities of a good accountant in a nutshell. Some of them are inborn; others must be acquired by education and experience. Among the most important of that sort of qualities are the following:
Ø a good knowledge of accounting and the ability to apply its principles in practical life;
Ø a broad general outlook and understanding of economic trends and events;
Ø responsibility, decision-making ability, the knowledge of accounting techniques;
Ø the ability to get on with colleagues, personnel and people in general.
Exercise 6.6
Read the whole text again and choose the best answer:
1. Do you think that mathematical geniuses always make the best accountants?
a) yes
b) no
2. What should you know well enough to work as an accountant?
a) You should be reasonably at home with basic mathematical concepts, and know how to use a calculator
b) You should know the philosophical concepts well
c) You should know a foreign language well
3. What should a person possess to acquire the necessary techniques for computing and presenting accounts?
a) if you can keep hold of the various political trends
b) If you can keep hold of the various strands, and disentangle them so as to present a coherent picture that is consistent
4. Why is the ability to put down your thoughts and conclusions clearly so important for accountants?
a) They should be understood not only by other accountants, but also clients or management without accountancy training
b) They should be understood by mathematicians
5. What tradition is there in accountancy as far as appearance is concerned?
a) You are most likely to be expected to wear a suit at work rather than jeans and a sweat-shirt, and you would have to be self-assured
b) You are most likely to wear jeans and a sweat-shirt at work and to have spiky hair
6. Why can't accountants be too conformist?
a) They have to know their own mind and have confidence in their professional judgment
b) They have to know their boss’s mind and have confidence in their professional judgment
7. What qualities should people acquire by education and experience to be good accountants?
a) a good knowledge of physics and chemistry and the ability to apply its principles in practical life; a broad general outlook and understanding of political trends and events; responsibility, decision-making ability, the knowledge of methodological techniques; the ability to get on with the press, personnel and people in general.
b) a good knowledge of accounting and the ability to apply its principles in practical life; a broad general outlook and understanding of economic trends and events; responsibility, decision-making ability, the knowledge of accounting techniques; the ability to get on with colleagues, personnel and people in general.
TEXT 7