BE

• Financial reporting

  Provision of useful financial information about the organisation to internal and external users for making appropriate and timely business decisions and assessing the organisation's management
• Assurance

  Expression of an opinion or conclusion by a professional accountant in public practice to enhance the confidence of intended users
• importance of Professional ethics

  reliese on shareholders,investors and other users to make financial decision

  Helps to protect the public and gain their confidence, induces members to behave in a manner that reflects credibility to the profession by enforcing proper conduct and reprimand those that misconduct
• principles of professional ethics for accounting professionals

  • Integrity
  • Objectivity
  • Professional competence and due care
  • Confidentiality
  • Professional behaviour
• Integrity

  Accounting professionals must be straightforward and honest in all professional and business relationships,and implies fair dealing amd truthfulness and not knowingly be associated with reports, returns, communications or other information that contains false or misleading statements, statements or information furnished recklessly, or omits or obscures required information
• Objectivity

  Accounting professionals must not compromise their professional judgement due to bias, conflict of interest, or undue influence of others
• Professional competence and due care

  Accounting professionals must maintain professional knowledge and skill, and act diligently in accordance with applicable technical and professional standards
• Confidentiality

  Accounting professionals must refrain from disclosing or using confidential information acquired through professional and business relationships for personal advantage or the advantage of third parties
• Professional behaviour

  Accounting professionals must comply with relevant laws and regulations and avoid any conduct that may discredit or adversely affect the reputation of the accounting profession
• Threats to compliance of professional principles

  • Self-interest threats
  • Advocacy threats
  • Familiarity threats
  • Intimidation threats
• Self-interest threats

  Threats caused by financial or other interest that will inappropriately influence the accounting professional's judgement or behaviour
• Advocacy threats

  Threats that an accounting professional will promote their employer's position to the point that their objectivity is compromised
• Familiarity threats

  Threats that due to a long or close relationship with a client or employer, an accounting professional will be too sympathetic to their interests or too accepting of their work
• Intimidation threats

  Threats that an accounting professional will be deterred from acting objectively because of actual or perceived pressures, including attempts to exercise undue influence
• Safeguards against threats

  • Educational, training and experience requirements upon hiring
  • Continuing professional development
  • Corporate governance regulations
  • Professional standards
  • Regulatory monitoring and disciplinary procedures
• reasons for upholding values for accountant

  • safeguard integrity of financial info
  • ensure proper reporting in compliance with finanical reporting standards
• Money laundering

  Illegal process where large amounts of money generated from criminal activities is disguised to appear to be proceeds from a legitimate business
• Examples of money laundering crimes

  • Drug trafficking
  • Weapons trafficking
  • Human trafficking
  • Bribery
  • Tax evasion
  • Fraud (accounting fraud, commercial fraud, insider trading, smuggling of cigarettes and liquor and many more)
• Money laundering process

  1. Placement

  2. Layering

  3. Integration
• Customer due diligence measures

  • Identifying the customer
  • Identifying the beneficial owner
  • Verifying customer's identity using reliable, independent source documents, data or information and taking reasonable measures to verify the identity of the beneficial owner
  • Understanding and obtaining information (where appropriate) on the purpose and intended nature of business relationship
  • Conducting ongoing due diligence on any continuing business relationship and scrutiny of transactions undertaken throughout the course of that relationship
• Supporting documents required

  • Passport/NRIC details of individuals
  • Documents such as utility bills, bank statements, etc of individuals
  • Details of company's business and ownership structure (for corporate customers)
  • Recent and current financial statements (for corporate customers)
• Whistleblowing

  The act of an employee reporting misconduct, illegal activities, or unethical behaviour within an organization to the public or to those in positions of authority
• AML/CFT committee

  • Permanent Secretary of the Ministry of Home Affairs
  • Permanent Secretary of the Ministry of Finance
  • Managing Director of the Monetary Authority of SG
• List of industries that comply with the AML/CFT L&R

  • Bank
  • casino operator
  • finance company
  • law practice
  • moneylender
  • Money changing and remittance Business
  • pawnbroker
  • Auditor
• Fair business practice

  • Market base on the truth and integrity of products
  • efficient after sales service
  • Invest and develop to improve product quality and make new ones
  • Charge reasonable price on goods sold
  • Facilitate contact with customers through online
  • Ensure products offering do not have any adverse affect on consumers
• unethical practice to customers

  • making false products items
  • products sold in poor working condition
  • Hidden term and condition
• Fair treatment to employees

  • provide fair salary in relation to their position
  • Safe and clean workspace
  • Fair and equal treatment
  • Show respect and courtesy
  • Provide opportunities for promotion
• unenthical Behavior

  • Unpaid overtime
  • Verbal Harassment
  • Undue Pressure
  • nepotism - overlooking hardworking ones
• Employee morals

  • Have responsibility to take proper action in workspace
  • Loyalty to the organization by not badmouthing
  • Proper use of funds
  • Showing respect to workspace
• Types of accounting fraud

  • cash fraud
  • accounts receivables fraud schemes
  • inventory fraud schemes
  • payable and disbrusment fraud schemesdisbursement
• Cash fraud schemes

  • Skimming of cash sales
  • Fraud using voids and sales returns
  • stealing cash
• Accounts receivables fraud schemes

  • False credits, discounts and other write-off
  • kickbacks- Illegal commissions paid to someone in exchange for preferential treatment.
• inventory fraud

  • Theft of inventory
  • sales return schemes
• Payables and disbursement fraud schems

  • false invoices from vendors
  • duplicate payments
• social responsibility of business

  • Environmental
  • philanthropic
  • economic
• Integration


  laundered money is then made available to appear legitimate
• implementation of AML controls

  • Criminalisation -makes money laundering illegal
  • Know your customer- monitoring the activities of customers and know the types transactions that should raise the flag
  • Record management- Keep detailed records of transactions and implyment software that flag suspicious activities