Active learning ideas
Ethics is the cornerstone of the accounting profession. This topic explores the ethical responsibilities of accountants and business owners, guided by the APES 110 Code of Ethics for Professional Accountants. Students investigate core principles such as integrity, objectivity, professional competence, and confidentiality. This aligns with VCE and QCE requirements for evaluating ethical considerations and corporate social responsibility (CSR) in business decision-making.
Activity 01
In small groups, students act out a scenario where a manager pressures an accountant to 'smooth' the profit figures to meet a bonus target. The 'accountant' must use the APES 110 principles to explain why they cannot comply and propose an ethical alternative.
What are the core ethical principles for accounting professionals?
Activity 02
Divide the class into two teams. One argues that a company's only ethical duty is to its shareholders (maximising profit), while the other argues that it has a 'social license to operate' that requires prioritising the community and environment. Use recent Australian corporate examples.
How should an accountant handle a conflict of interest?
Activity 03
Display summaries of famous accounting scandals (e.g., Enron, or more recent Australian cases). Students move in pairs to identify which ethical principles were breached and discuss what the 'internal controls' should have been to prevent the lapse.
What is the role of corporate social responsibility in modern business?
A few notes on teaching this unit
Watch Out for These Misconceptions
If it's legal, it's ethical.
Students often confuse the two. Use a role-play to show that while 'tax avoidance' might be legal, it can be ethically questionable if it involves aggressive schemes that go against the spirit of the law, highlighting the accountant's duty to act with integrity.
Ethics is only about not stealing money.
Students may have a narrow view of ethics. Peer discussion can help them see that 'Professional Competence' is also an ethical duty, meaning it is unethical to take on work you aren't qualified to do, as it could lead to harmful errors for the client.
Methods used in this brief
Cost-Volume-Profit (CVP) Analysis
Students apply CVP analysis to determine break-even points and target profits. They use this management accounting tool to make informed pricing and production decisions.
8 methodologies
Capital Investment Decisions
Explores methods for evaluating long-term capital investments, including Net Present Value (NPV) and the Payback Period. Students assess the viability of proposed business projects.
8 methodologies
The Impact of ICT and Cloud Accounting
Examines the transformative effect of Information and Communication Technology (ICT) on the accounting profession. Students explore the benefits and risks of cloud-based accounting systems.
8 methodologies