(a). A business code of ethics is developed for a company and is a statement of the ethical stance of the company. It is also a statement by the company about how it expects its employees to behave, in order to uphold the ethical values of the company.

A professional code of ethics for accountants is for all individual professional accountants, and is a statement of how they are expected to behave as individuals. It includes a requirement that accountants should consider the public interest.

(b). An accountant might face an ethical dilemma in the following situations.
(1) The accountant is under pressure from a senior manager to agree with the manager’s point of view and provide formal support, even though the accountant does not agree.
Appropriate behaviour: The accountant should remain objective, base their opinion on evidence, and communicate their professional judgment respectfully, escalating to higher authority if needed.

(2) The accountant is expected to support a decision taken by management, which might also be in the accountant’s personal interests, even though the accountant knows the decision to be wrong. (For example, the accountant might be expected to keep quiet about an illegal activity by the company.)
Appropriate behaviour: The accountant should report the illegal activity to the appropriate internal or external authority, prioritizing legal and ethical standards over personal gain.

(3) The accountant is asked to do something that is contrary to an accounting standard, or other professional or technical standard, in order to present information in a more favourable way.
Appropriate behaviour: The accountant should adhere to the relevant standards, explain the importance of compliance to management, and refuse to manipulate information.

(4) The accountant is asked to keep quiet about a mistake made by a boss. The accountant might feel obliged to agree, out of loyalty to the boss.
Appropriate behaviour: The accountant should report the mistake through proper channels, ensuring transparency while maintaining professionalism and respect.

(5) The accountant misleads his boss or his client about his technical expertise and knowledge, in order to be given some work.
Appropriate behaviour: The accountant should be honest about their capabilities, seek training if needed, and only accept tasks they are competent to perform.

(c). It is a responsibility of the accountancy profession ‘not to act exclusively to satisfy the needs of a particular client or employer’. When the demands or needs of a client or employer appear to be contrary to the public interest, accountants should consider the public interest.
Professional codes of ethics do not provide a clear definition of public interest, but it is usual to associate the public interest with matters such as:

• detecting and reporting any serious misdemeanour or crime
• protecting health and public safety
• preventing the public from being misled by a statement or action by an individual or an organisation
• exposing the misuse of public funds and corruption in government
• revealing the existence of any conflict of interests of those individuals who are in a position of power or influence.