80 Accounting: Business Reporting for Decision Making
2.17 Are ethics and corporate governance important topics in the study of accounting and the
business environment? Why or why not? LO3
2.18 List the qualities needed in providing external audit and assurance services to organisations
in relation to CSR reports. LO2
2.19 Comment on the approach put forward by the St James Ethics Centre in deliberations of an
ethical issue. LO6
2.20 Identify five stakeholders of the business community, and give reasons as to why they
would have an interest. LO1
2.21 Outline activities that accountants could take to help corporations discharge their social
obligations. LO2
2.22 Identify and discuss five fundamental principles of the Code of Professional Conduct. LO6
2.23 What is stewardship theory and how is it related to corporate governance? LO1
2.24 What is risk management and why is it included in the ASXCGC corporate governance
principles and recommendations? LO4
2.25 Give some examples of each of Carroll’s four key responsibilities of business. Have any of
these changed from one responsibility grouping to another over the last decade? LO5
2.26 List some of the reasons given to explain why businesses act in a socially responsible
manner. LO1
2.27 What is meant by the term ‘shareholder value’? LO1
2.28 Explain the following: LO3
a. triple bottom line reporting
b. corporate governance
c. the relationship of stakeholders to corporate governance.2.29 Discuss the relevance of legitimacy theory to corporations. LO1
2.30 Outline the possible consequences for an entity that breaches its ‘social contract’. LO1
2.31 Outline the corporate governance principles and recommendations. LO4
2.32 Discuss the arguments for and against a single goal of increasing shareholder value. LO1
2.33 Outline the legal duties that directors have to their company. LO3
2.34 Identify some social performance aspects on which entities report. LO2
2.35 Compare and contrast the professional code of ethics for individuals and the guidelines
for corporations. LO6
2.36 What is the difference between business ethics and social and environmental responsibility? LO5
2.37 Compare the principles underlying the GRI sustainability reporting framework with the
principles underlying the preparation of general purpose financial reports (that were
presented in chapter one). LO2Exercises
BASIC | MODERATE | CHALLENGING
2.38 Business sustainability LO1
Consider your personal environmental impact by accessing one of the many websites that has
a personal ecological footprint calculator. One such website is http://www.epa.vic.gov.au/ecological-
footprint/calculators. Compare your ecological footprint with those of your classmates. List some
strategies you could easily undertake to reduce your ecological footprint.2.39 Fraud LO5
A survey conducted by CPA Australia shows that at least one in four small busi-
nesses are affected by fraud. Employee fraud was the most common type reported,
with 10 per cent of small entities indicating they had suffered as a result of employee
fraud. Other fraud incidences suffered by small entities included loss of funds from bank