Ms. Uzma is the chief accountant of Shine Events LLC. The company is involved in managing events in the Sultanate of Oman. As an accountant she should follow the code of professional ethics that are prescribed by the law. She has always been a sincere and honest employee. In her daily work, she is facing many situations which challenges her policy of following the code of professional ethics. Given below are few situations she faced in her profession.
You are required to read the situation given in Column: A and identify the principle of code of professional ethics and mention it in Column: B and explain the principle in Column: C (10 Marks)
(Note: Copy the table below in your answer sheet and then write your answers in Column: B and Column: C)
Column: A
Situation
Column: B
Principle
Column: C
Explanation
The management of the company informed about the details of bonus and incentives to be paid to employees to Ms. Uzma.
Mr. Khan the cousin brother of Ms.Uzma was working as the Sales executive in the same company.
Mr. Khan asked Ms.Uzma about details of his bonus and incentives but she did not give the details and told him that he can come to know about it, when the management informs him.


Shine Events LLC is planning to introduce a new accounting software in the company and asks Ms. Uzma to attend one-week training in UAE. She readily accepted to go for the training and learn the working with the new accounting software.


The company management is asking Ms. Uzma to make some changes in the financial statements of the company in the current year. Profits of the company during the year was OMR 1.1 Million The management wanted Ms.Uzma to show the profits as OMR 0.9 Million so that that company can pay less taxes to the government. But she did not agree to make such false statements and cheat the government.


Ms.Uzma always followed the accounting standards issued by IFRS and all the relevant laws and regulations related to the Sultanate of Oman with regards to event management companies in preparing the financial statements of the company.


As the company management asked her to make some changes in the financial statements to show less profits and Ms.Uzma did not agree, the management of the company threatened her that she will be terminated if she disagrees to do so.
Ms.Uzma replied the management that she will not do any activities against law and she does not mind to resign if she is forced to do such malpractices.

Answer rating: 100% (QA)

Column B Principle The basic principles of professional ethics are as follows Honesty In... View the full answer