CPA Ethics and Governance study guide
CPA Ethics and Governance · Work through your exam, one topic at a time.
Ethics and Governance is a subject area within the CPA Program, the professional qualification pathway offered by CPA Australia. CPA Australia's own website describes the CPA Program as being made up of four compulsory subjects and two electives. The CPA Ethics and Governance study guide has 5 sections and about 1,914 words.
01The Nature of Ethics and the Accounting Profession
Ethics is systematic reflection on what one ought to do; morality is the prevailing standards of a group. Expect questions at three levels: descriptive (how people actually behave), normative (how they should behave) and meta-ethics (the meaning of moral language).
402 words, about 2 min02Ethical Decision-Making and Professional Conduct in Practice
Decision models give a defensible audit trail: gather facts, identify the ethical issue, identify stakeholders and their interests, generate alternatives, evaluate against principles and consequences, decide, implement and reflect. Rest's model splits the process into moral sensitivity, judgement, motivation and character - a candidate may judge correctly but lack the courage to act.
356 words, about 2 min03Corporate Governance Concepts and Theories
Governance theories are competing assumptions about human motivation and the purpose of the firm, and questions frequently ask which theory best explains a given arrangement. Be able to match theory to prescription.
380 words, about 2 min04Governance in Practice: Boards, Committees and Accountability
Boards set strategy and oversee management, appoint and assess the CEO, oversee risk and financial reporting integrity, approve remuneration, ensure compliance and shape ethical culture. Independence turns on the absence of material relationships - a former executive, a major adviser or a substantial shareholder is not independent.
397 words, about 2 min05Corporate Social Responsibility, Sustainability and Stakeholder Accountability
CSR is the voluntary integration of social and environmental concerns into operations and interaction with stakeholders; sustainability adds intergenerational equity - meeting present needs without compromising future ones. Elkington's triple bottom line reports economic, social and environmental performance, but the three dimensions are not simply added together.
379 words, about 2 min