Tutorial 2

1) What is the definition of accounting?

2) What is the purpose of accounting?
3) What are financial statements?
4) Give 3 examples of financial statements and list out their objectives
5) List out the types of accounting and their purposes
6) What is auditing and why is it an integral part of accounting?
7) Briefly explain the 2 types of auditing and their functions
8) Who are the users of accounting information and why do they require such information?
9) What is the definition of ethics in accounting?
10) Why is ethics important in accounting?
11) What are the five fundamental ethical principles that every accounting professional should
practise?
12) Here is a list of 28 examples of morals and ethics.
Morals and ethics are intertwined concepts that deal with principles and guidelines for human
behaviour and decision-making. Morals are personal beliefs and values that help individuals
distinguish between right and wrong, while ethics provide a broader framework that evaluates and
guides conduct within a specific context, such as a profession or society.
Different societies have different standards of moral values. This means there’s no clear set of rules
of morals that suits every situation. But below are some moral values examples that most people
adhere to across cultures and societies.

The following is a list of morals most of us can agree on:

1. Telling the Truth

2. Do Not Hurt Others’ Feelings
3. Fair Play
4. Hard Work
5. Paying a Fair Price
6. Respect for Others
7. Do Unto Others as you would have Done to Yourself
8. Forgive Others
9. Admit Fault
10. Use Manners
11. Be Kind
12. Wait your Turn
13. Express Gratitude
14. Respect Yourself
15. Respect your Parents
16. Return Favors
17. Ask for Permission
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 18. Keep Promises
20. Be Humble
21. Do Not Gossip
22. Respect Difference
23. Do Not be Jealous
24. Do Not Swear
25. Respect the Rules in Others’ Houses
26. Turn the Other Cheek
27. Do not Take Bribes
28. Use Non-Violence

How many of them have you practiced and do you intend to practise the rest?
13) Write out your personal code of ethics

There are examples of morals in literature, religious texts, and our cultural upbringing that help us
to lead a good life.

By establishing a personal moral code based on our own critical thinking, learning from others, and
listening to people we respect, we can ensure we are good and ethical people throughout our
lives.

A good personal code of ethics details an individual's value system, moral standards and
professional background in a readable format. It highlights different principles an individual can
use for their personal life and professional career. People can also use a code of ethics to make
important decisions and increase their overall motivation. Some examples of these guiding
principles may include respecting the viewpoints of others or maintaining a person's integrity in all
situations.

Here is an example of personal codes of ethics you can refer to:

Medical doctor example

Dr. Joshua Brodsky, M.D.

My personal code of ethics

• Care: I have a duty of care to everyone I encounter in my day-to-day life, including patients,
peers and family members. When possible, I plan to dedicate my time and energy to
ensuring other people are safe and happy because it's important that people stay
accountable to each other.
• Honesty: I maintain integrity in all situations, particularly when informing patients about
their health care status. I prefer peers and colleagues to know I am a reliable person who
always says exactly what I mean. It's important to speak honestly so people can learn to
trust each other.
• Excellence: I promise to render high-quality medical services to every patient I meet. I aim
to use this principle in other aspects of my life, including family endeavors and hobby
projects, so I can maintain high standards in every situation and better achieve my goals.
• Fairness: I strive to treat every person I encounter equally and reflect upon situations
before judging others. I plan to apply the same code of ethics to all patients and
colleagues. I promise to think about external factors in a person's life so I can approach
their situation with openness and a neutral perspective
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(14) Powerful question
There are unethical people who are successful in life and making a lot of money
Hence, are ethics still important in life?

Although unethical people may be successful in life, ethics are still very important in life for
the following reasons
1) The law of cause and effects never fails for you reap what you sow.
Sooner or later the ones who do bad things will experience bad outcomes. It could
happen directly to them, their family members or those close to them
2) Outwardly they may appear successful but their success will not be sustainable for
in the internet age, bad news spread fast and stakeholders (SCREW) can boycott
them and cause their downfall
3) They may be wealthy by doing bad things, but will they be healthy and happy? They
may lose their health, physically and mentally, and have no close family ties and
genuine friends while building their wealth using unscrupulous ways.
4) They are unlikely to have peace of mind as they are always suspicious of others
finding out their cheating ways and suspicious of others cheating him
5) A business has to be ethical in order that its financial statements are able to show
that it is profitable, stable and sustainable via its P&L, B/S and cashflow respectively.
Likewise, a person has to be ethical in order to be healthy, wealthy and happy.
6) Do not be deluded that one has to be bad to be rich. Always build your wealth using
SQ (Be good, do good and be rich to do more good)

Powerful rules
Always balance compassion with wisdom

Wisdom without compassion is ruthlessness and

compassion without wisdom is folly/foolish Fred Kofman

Ruthlessness – bully others, no mercy, use and take advantage of others, no empathy

Folly – Easily taken advantage of, easily get cheated

(e.g donate to dubious body/ love scam/syndicate of beggars)

Wisdom is knowing what is right or wrong

R = Right or wrong
I = Important or not important (Impact short or long-term)
G = Good or bad
H = High (Light) or low (Darkness)
T = True or false/fake

To be kind is more important than to be right. Many times, what people need is not a
brilliant mind that speaks but a special heart that listens --Scott Fitzgerald
However, always balance compassion with wisdom for compassion always goes with
wisdom.
Compassion without wisdom is not understood to be true compassion,
and wisdom without compassion is not true wisdom
Hence, you have to apply both of them in resolving ethical dilemma
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(15) Group Activities
Students to form into groups of 5
Each group to do 2 of the following questions and to appoint a team leader to present them,
including their personal codes of ethics.
Ethical dilemma in real life

What Are Ethical Dilemmas?

Ethical dilemmas are all about difficulty in choosing between two courses of action, in which
either choice involves disobeying a moral principle.

Hence, if you’re facing an ethical dilemma, it can affect you emotionally as you may struggle
between

1) what you consider to be right against

2) what you consider to be necessary for a certain situation.

An ethical dilemma occurs when your moral principles are challenged. Some instances of the
moral tenets are honesty, abstaining from and not promoting violence, caring for others,
respecting the privacy of others, aiding people in trouble, and not harming others, whether
humans or animals.

You may have heard of ethical dilemma examples called moral dilemmas or ethical paradoxes. In
some instances, any choice you make is wrong in some sense.

In each ethical dilemma, the options are at odds with each other; they conflict with each other,
causing a contradiction or paradox.

There are situations where you might have two choices; if you choose one, it would be impossible
to choose the other.

Real-World Ethical Dilemma Examples

Often, the best way to mitigate ethical dilemmas is to learn about and seek understanding with
real-world examples. Here are 16 examples of real-world ethical dilemmas we trust you’ll find
useful.

1. Monitoring Teens on social media.

Should a teenager using Facebook, Instagram, or TikTok have their social media use monitored?
This is an ethical dilemma many parents of teens face as teenagers spend many hours engaging in
online activities daily. For some parents, the question may be: Do I trust my child to use social
media responsibly or not?

For others, they may be asking themselves: From a safety standpoint as a parent, should I monitor
my teenager’s online activities, or are they old enough to use social media responsibly?

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Whichever ethical dilemma they are facing, a parent’s fear of cyberbullying and safety for their
children is not unfounded. According to 2018 Pew Research, 21% of 13-15-year-olds, 16% of 16-
17-year-olds, and 12% of 18-20-year-olds experienced cyberbullying.

While anyone utilizing the Internet risks cyberbullying, teens are ill-equipped to deal with such
treatment as their brains are not yet fully developed. Therefore, it is a parent’s duty to protect
their child from online attacks.

However, since the close monitoring of a teenager’s activities, online or otherwise, may be
construed as a lack of trust toward the teen, it can potentially damage or at least put a strain on
the parent-child relationship. Therein lies the ethical dilemma and the choices each parent must
make.

2) Internet dilemmas

The Internet is full of ethical dilemmas.

Do I post a picture of a lunch I’ve been invited to, even though I know my friends in the class who
were left out will see these posts?

Do I download a song or video that I have not purchased the rights to?

Do I copy and paste the work of another and include it in my school assignment without crediting
the author?

3. Ghosting.

This is when you end a relationship by not responding to the other person at all, by just ignoring
them, rather than telling them you would like to end the relationship. While ghosting someone is
not the nicest of ways to end a relationship, is it morally wrong?

If you believe in kindness, you may struggle as to whether you can live with your decision to ghost
someone. Ghosting seems like the easy way out for the one ghosting, but it's hard for the one
being ghosted to find closure and move on.

Other inappropriate way in dealing with a relationship include breadcrumbs, gaslighting

Breadcrumbs
A person who gives you just enough “crumbs” of attention or affection to give you hope and keep
you on the hook – but not enough to make you feel comfortable or assured the relationship is
going well

Gaslighting
Gaslighting is the action of repetitively and often brazenly lying to someone to manipulate them to
make them feel unstable, irrational and not credible, making them feel like what they’re seeing or
experiencing isn’t real, that they’re making it up, that no one else will believe them.

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4. Intentionally Misinterpreting Data.

There are several instances you may find yourself in where you’re tempted to fudge the numbers.
Maybe you’re in the corporate world and are tempted or encouraged to share the data in such a
way that will cause stockholders to believe their investments are more secure than they are.

Your ethical dilemma may be whether you misinterpret the data and secure your career or share
the true numbers and risk losing your job.

5. Selling a Car Without Disclosing All Known Negative Details.

Let's say you're selling your car to upgrade to a newer model. Nothing much is wrong with it, so
you fail to disclose the fact that it has trouble starting from time to time; or, that it was involved
in an accident.

Should you disclose whatever is wrong with it to potential buyers or do you consider purchasing a
used car to be a ‘buyer beware' situation? Uphold your moral standards and make sure you aren’t
the subject of someone’s used car sales gone bad story.

6. Cheat on Your Significant Other.

Your relationship has gone south but you're still considered a couple. You meet someone that,
well, if you weren't married… But you are; and you stood before an entire congregation of people
promising fidelity “til death do us part'.

7. Should You Lie to a Sick Loved One?

Usually, if someone considers lying, whether they do it or not, it goes against their belief system
and in their heart, they know that it's wrong. However, whenever the truth would hurt someone
you love, it often presents a grey area or a moral dilemma.

There have been instances where family members have either lied or withheld the truth in order
to spare the feelings of a sick loved one, particularly in cases of Alzheimer's patients.

If an Alzheimer's patient asks about a loved one, and that loved one is deceased, finding out about
their death all over again can cause them pain. Because of that, some family members will lie to
spare their loved one's feelings. Is it ever compassionate to withhold information from your loved
one with Alzheimer's?

8. To Share or Not to Share Political Leanings.

Have you noticed how passionate people are about politics? If you choose to share your political
leanings online or in person, you would lose followers, friends, and/or family members.

Some people weigh the options and decide it's not worth it to speak what's on your mind and lose
the close contact of others.

Some say it's best to be real, to be authentic, and share any and all beliefs, loud and proud. Before
choosing either option, weigh your options. Which choice can you live with? Which one could you
not live with?

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No matter what you decide, take time to consider the consequences of each choice before firmly
making your decision. Then, be prepared to live with those consequences.

9. Whether to Report an Accident.

Many of us have been involved in situations where we scratch another car on the way out of a
tight spot in a parking area. The ethical question is whether to inform the owner of the car and, if
so, how to do it.

These incidents create ethical dilemmas because the way we deal with them says a lot about our
character and whether we act in our own interests or the interests of others.

As the following situation illustrates, the way we react may depend on whether anyone was
watching.

Consider the following facts to get started. You pulled out of a tight space in a parking lot and
dented the car next to you. You’re quite sure no one saw you. What would you do?

Some people may be tempted to simply leave and avoid the hassle of reporting the incident. This
is especially true if the accident will cause insurance rates to go up. Ignoring the situation may be
the easiest solution but is it the most ethically appropriate?

Let’s change the facts now and you think someone may have witnessed the incident. Should you
report the accident now? One reason for doing so is if you leave the scene without reporting it to
the police or at least leaving a note for the driver you may have violated the law.

Still not sure what you would do? Imagine that your child is in the car. She is aware that you
scratched the other car on the way out of the parking lot. Would that change what you would do?

Most people now say they would at least leave a note for the other driver with contact
information. After all, you want to send the right ethical message to your kid and take
responsibility for your action.

Ethically speaking, it shouldn’t matter whether someone witnessed what you did or not.

10. To Share or Not to Share Religious Beliefs.

It's been said to never discuss politics or religion. Yet there comes a time in close relationships
where the question of whether to share what your beliefs are may come to mind, bringing you
face to face with a moral dilemma.

If you know the person you'll be sharing with has beliefs that are different from yours, you may
wonder if sharing your beliefs will push them away.

Withholding the information as you grow closer in a relationship may cause several problems: the
other person in the relationship may feel you haven't been as open and honest as you should have
been, or you may feel conflicted as you want to share but are hesitant to do so.

However, if you feel a kinship with a person on a spiritual level, you may consider sharing your
religious views.

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If the question of whether you should share your religious views at work arises, you may want to
ask yourself why you would consider sharing.

While there are employment laws against discrimination of religion, you need to be careful not to
proselytize, which is to try to convert someone, and would be frowned upon in the workplace.

11. Should You Lie to Your Boss?

Being less than truthful with your boss can have repercussions, depending on the lie. The moral
dilemma you may face may be whether you should lie about your experience and education,
which could easily be verified. If the lie is less impactful, as in, you call in sick but aren't, you are
less likely to get caught in the lie.

In employing your critical thinking skills you may find that you agree its fine to lie to your boss in
certain situations. However, does lying to your boss on any level go against your personal moral
beliefs? If so, that will create your moral dilemma.

12. Recalling a Faulty Product.

Let's say you own a business, and it has come to your attention that the product you've shipped
and sold has a faulty part.

What would you do? If the part's faultiness would cause harm to someone using the product,
that's a serious consideration. If, however, the faultiness may not be noticed and would not cause
harm, that may cause you to consider not recalling the product.

The moral dilemma is presented as you determine how you feel about not making the product
right and looking out for the best interests of your customers. There is also the legal side of
recalling a product.

13. Taking Credit for Your Coworker’s Work.

You've collaborated on a project at work. Your team members have given valuable input that has
drawn attention from your management team. You know this recognition could move you closer
to a promotion.

Although one of your teammates had the most eye-catching input, should you claim credit for it?
After all, it was a team effort, and you'd really like that promotion.

The moral dilemma is doing what's right by giving your teammates the credit they deserve, which
would preserve your working relationship or risk your working relationship by claiming the credit
for yourself.

To help you make your decision ask yourself whether taking credit for someone else's work is
ethical. It would be more beneficial to pursue your own path to promotion without detracting
from someone else.

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14. Should You Tell Your Friend if Her Husband is Cheating?

It's a heavy burden to carry and keep a secret from a friend, especially if you feel that she will be
hurt by finding out the truth. You may also be worried about how the information you're intending
to share will be received.

If not received well, you could lose a friend. At best, it would likely be an emotional conversation.

Or your moral dilemma might be: should you speak to your friend about the situation or speak to
her husband or just do nothing?

No matter what your choice is according to your moral beliefs, I think you can agree this is a sticky
situation. If you do decide to tell your friend, do it with finesse.

15. Is It Okay to Take Supplies from Your Office?

Many people work in office settings and for their job functions to be fulfilled, their companies
supply tools they need. These tools may be something as simple as paper clips to pens, notebooks,
office chairs, and computers.

The moral dilemma becomes when you question whether you should take some of these office
supplies home for your own personal use.

According to your belief system, would that be stealing from the company or would it be
acceptable? Would it matter if the item you'd like to take is a small item or do you believe, right or
wrong, any item would carry the same weight in your decision?

16) Explore the following ethical scenarios and consider what would you do?

i. Fast food dilemma:

You are an employee at a fast-food restaurant in charge of the grill. It’s busy today, and a lot of
orders are coming in fast. In the process of cooking, you drop a hamburger patty on the floor. Your
manager is passing by and says “Just pick it up and serve it.” What would you do?

ii. Easy A?
You have a research paper due in a few days for your English class. If you don’t do well in this class,
your financial aid will be compromised—you cannot afford school otherwise. A friend tells you
about a website that creates custom papers for a small fee. You are guaranteed an “A” on the
essay, and guaranteed you won’t be caught. What would you do?

iii. Too much alcohol:

You are at a party with all of your friends and everyone is having a great time. You notice that one
of your underage friends has had too much to drink and is on the verge of passing out. What
would you do?

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iv. Loyalty or honesty?
Your friend tells you in the strictest confidence that she is cheating on her boyfriend. A few months
later, her boyfriend asks you straight out: "Is___ cheating on me?" What would you do?
v. Insurance fraud?
Your apartment was burglarized, and many things were stolen, including a television in your living
room. That television, however, had been broken down, irreparably, and was worthless—you just
haven’t had the time or money to replace it. Luckily you have renter’s insurance to cover your
losses. Do you include the television in your insurance claim? What would you do?

While ethical dilemma examples may go from two difficult choices, to almost impossible choices,
I'm sure you and I can agree that it helps to arm yourself with the knowledge of how others have
faced similar situations.

Conclusion

In reading through the ethical dilemma examples we've provided, you may have found a pathway
to your own answers.

When making your choices, it's in your best interest to keep honesty, integrity, and morality
paramount. The ability to weigh each choice and try to objectively choose for the greater good
is beneficial.

Your critical thinking skills will come into play and possibly be challenged when making difficult
choices. As you can see from the examples we've provided in this article, some moral dilemmas
are quite difficult and the answers are not always clear-cut choices.

The bottom line is that the examples detailed in this article may help you in making decisions as
they arise in your own life, especially when you find them challenging.

A good starting point is to get yourself in the right mindset, consider all the facts, then figure
out whether you have the control to make the decision needed before moving forward. Having
done that, once you've made your choice, you'll have the satisfaction that you've chosen wisely.

Always remember to balance compassion with wisdom.

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