Professional Skills: Ethics, Communication and Controls
Ethical principles
Accounting technicians are expected to act with integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. In scenario questions, identify the threat (self-interest, self-review, advocacy, familiarity, intimidation), then the safeguard (declaration of interest, escalation, independent review, refusing the engagement). The strongest answer names the principle, the threat and the action.
Internal control and fraud
Understand the components of internal control (control environment, risk assessment, control activities, information and communication, monitoring) and the classic controls: segregation of duties, authorisation, physical safeguards, reconciliations and rotation of staff. Know the difference between error and fraud, and recognise the warning signs of fraud such as unexplained adjustments, one person controlling a whole cycle, or lifestyle inconsistent with salary.
Communication
Written and verbal communication must be clear, concise, accurate and appropriate to the audience. A report to a non-financial manager avoids jargon and leads with the conclusion; a formal letter follows house style. Spreadsheets should be structured, labelled and free from hard-coded figures where formulas are appropriate.
Worked example
A junior clerk both raises purchase orders and processes supplier payments. The threat is fraud through fictitious suppliers. The safeguard is segregation of duties: a second person authorises payments, and the bank reconciliation is performed independently.
Common traps
Describing what happened without stating the ethical principle; recommending 'tell the manager' without considering confidentiality or escalation routes; and confusing internal control weaknesses with evidence of fraud. Also beware questions asking for the first action - usually clarify facts or escalate, not resign.