ACCA 2014 All rights reserved.
1
Governance, Risk and
Ethics (P1) December
2014 & June 2015
This syllabus and study guide is designed to help
with planning study and to provide detailed
information on what could be assessed in
any examination session.
THE STRUCTURE OF THE SYLLABUS AND
STUDY GUIDE
Relational diagram of paper with other papers
This diagram shows direct and indirect links
between this paper and other papers preceding or
following it. Some papers are directly underpinned
by other papers such as Advanced Performance
Management by Performance Management. These
links are shown as solid line arrows. Other papers
only have indirect relationships with each other
such as links existing between the accounting and
auditing papers. The links between these are shown
as dotted line arrows. This diagram indicates where
you are expected to have underpinning knowledge
and where it would be useful to review previous
learning before undertaking study.
Overall aim of the syllabus
This explains briefly the overall objective of the
paper and indicates in the broadest sense the
capabilities to be developed within the paper.
Main capabilities
This paper’s aim is broken down into several main
capabilities which divide the syllabus and study
guide into discrete sections.
Relational diagram of the main capabilities
This diagram illustrates the flows and links between
the main capabilities (sections) of the syllabus and
should be used as an aid to planning teaching and
learning in a structured way.
Syllabus rationale
This is a narrative explaining how the syllabus is
structured and how the main capabilities are linked.
The rationale also explains in further detail what the
examination intends to assess and why.
Detailed syllabus
This shows the breakdown of the main capabilities
(sections) of the syllabus into subject areas. This is
the blueprint for the detailed study guide.
Approach to examining the syllabus
This section briefly explains the structure of the
examination and how it is assessed.
Study Guide
This is the main document that students, learning
and content providers should use as the basis of
their studies, instruction and materials.
Examinations will be based on the detail of the
study guide which comprehensively identifies what
could be assessed in any examination session.
The study guide is a precise reflection and
breakdown of the syllabus. It is divided into sections
based on the main capabilities identified in the
syllabus. These sections are divided into subject
areas which relate to the sub-capabilities included
in the detailed syllabus. Subject areas are broken
down into sub-headings which describe the detailed
outcomes that could be assessed in examinations.
These outcomes are described using verbs
indicating what exams may require students to
demonstrate, and the broad intellectual level at
which these may need to be demonstrated
?。?see intellectual levels below)。
INTELLECTUAL LEVELS
The syllabus is designed to progressively broaden
and deepen the knowledge, skills and professional
values demonstrated by the student on their way
through the qualification.
The specific capabilities within the detailed
syllabuses and study guides are assessed at one of
three intellectual or cognitive levels:
LevelⅠ: Knowledge and comprehension
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LevelⅡ: Application and analysis
LevelⅢ: Synthesis and *uation
Very broadly, these intellectual levels relate to the
three cognitive levels at which the Knowledge
module, the Skills module and the Professional level
are assessed.
Each subject area in the detailed study guide
included in this document is given a 1, 2, or
3 superscript, denoting intellectual level, marked at
the end of each relevant line. This gives an
indication of the intellectual depth at which an area
could be assessed within the examination. However,
while level 1 broadly equates with the Knowledge
module, level 2 equates to the Skills module and
level 3 to the Professional level, some lower level
skills can continue to be assessed as the student
progresses through each module and level. This
reflects that at each stage of study there will be a
requirement to broaden, as well as deepen
capabilities. It is also possible that occasionally
some higher level capabilities may be assessed at
lower levels.
LEARNING HOURS AND EDUCATION
RECOGNITION
The ACCA qualification does not prescribe or
recommend any particular number of learning hours
for examinations because study and learning
patterns and styles vary greatly between people and
organisations. This also recognises the wide
diversity of personal, professional and educational
circumstances in which ACCA students find
themselves.
As a member of the International Federation of
Accountants, ACCA seeks to enhance the education
recognition of its qualification on both national and
international education frameworks, and with
educational authorities and partners globally. In
doing so, ACCA aims to ensure that its qualifications
are recognized and valued by governments,
regulatory authorities and employers across all
sectors. To this end, ACCA qualifications are
currently recognized on the education frameworks in
several countries. Please refer to your national
education framework regulator for further
information.
Each syllabus contains between 23 and 35 main
subject area headings depending on the nature of
the subject and how these areas have been broken
down.
GUIDE TO EXAM STRUCTURE
The structure of examinations varies within and
between modules and levels.
The Fundamentals level examinations contain
100% compulsory questions to encourage
candidates to study across the breadth of each
syllabus.
The Knowledge module is assessed by equivalent
two-hour paper based and computer based
examinations.
The Skills module examinations F5-F9 are all paper
based
three-hour papers containing a mix of objective and
longer type questions. The Corporate and
Business
Law (F4) paper is a two- hour computer based
objective test examination which is also
available as a paper based version from the
December 2014 examination session.
The Professional level papers are all three-hour
paper based examinations, all containing two
sections. Section A is compulsory, but there will be
some choice offered in Section B.
For all three hour examination papers, ACCA has
introduced 15 minutes reading and planning time.
This additional time is allowed at the beginning of
each three-hour examination to allow candidates to
read the questions and to begin planning their
answers before they start writing in their answer
books. This time should be used to ensure that all
the information and exam requirements are properly
read and understood.
During reading and planning time candidates may
only annotate their question paper. They may not
write anything in their answer booklets until told to
do so by the invigilator.
The Essentials module papers all have a Section A
containing a major case study question with all
requirements totalling 50 marks relating to this
case. Section B gives students a choice of two from
three 25 mark questions.
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Section A of both the P4 and P5 Options papers
contain one 50 mark compulsory question, and
Section B will offer a choice of two from three
questions each worth 25 marks each.
Section A of each of the P6 and P7 Options papers
contains 60 compulsory marks from two questions;
question 1 attracting 35 marks, and question 2
attracting 25 marks. Section B of both these
Options papers will offer a choice of two from three
questions, with each question attracting 20 marks.
All Professional level exams contain four
professional marks.
The pass mark for all ACCA Qualification
examination papers is 50%.
GUIDE TO EXAMINATION ASSESSMENT
ACCA reserves the right to examine anything
contained within the study guide at any examination
session. This includes knowledge, techniques,
principles, theories, and concepts as specified.
For the financial accounting, audit and assurance,
law and tax papers except where indicated
otherwise, ACCA will publish examinable
documents once a year to indicate exactly
what regulations and legislation could potentially be
assessed within identified examination sessions
For paper based examinations regulation issued or
legislation passed on or before 31st August annually,
will be examinable from 1st September of the
following year to 31st August t of the year after that.
Please refer to the examinable documents for the
paper (where relevant) for further information.
Regulation issued or legislation passed in
accordance with the above dates may be
examinable even if the effective date is in the future.
The term issued or passed relates to when
regulation or legislation has been formally approved.
The term effective relates to when regulation or
legislation must be applied to an entity transactions
and business practices.
The study guide offers more detailed guidance on
the depth and level at which the examinable
documents will be examined. The study guide
should therefore be read in conjunction with the
examinable documents list.
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4
Syllabus
AIM
To apply relevant knowledge, skills and exercise
professional judgement in carrying out the role of
the accountant relating to governance, internal
control, compliance and the management of risk
within an organisation, in the context of an overall
ethical framework.
MAIN CAPABILITIES
On successful completion of this paper, candidates
should be able to:
A Define governance and explain its function in
the effective management and control of
organisations and of the resources for which
they are accountable
B Evaluate the Professional Accountant’s
role in internal control, review and compliance
C Explain the role of the accountant in identifying
and assessing risk
D Explain and *uate the role of the accountant
in controlling and mitigating risk
E Demonstrate the application of professional
values and judgement through an ethical
framework that is in the best interests of
society and the profession, in compliance with
relevant professional codes, laws and
regulations.
RELATIONAL DIAGRAM OF MAIN CAPABILITIES
AB (F1)
GRE
?。≒1)
Professional
Ethics Module
Professional
papers
AA (F8)
Professional values, ethics and social responsibility (E)
Governance and responsibility (A)
Internal control and
review (B)
Identifying, assessing and
controlling risk (C and D)
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RATIONALE
The syllabus for Paper P1, Governance, Risk and
Ethics, acts as the gateway syllabus into the
professional level. It sets the other Essentials and
Options papers into a wider professional,
organisational, and societal context.
The syllabus assumes essential technical skills and
knowledge acquired at the Fundamentals level
where the core technical capabilities will have been
acquired, and where ethics, corporate governance,
internal audit, control, and risk will have been
introduced in a subject-specific context.
The GRE syllabus begins by examining the whole
area of governance within organisations in the broad
context of the agency relationship. This aspect of
the syllabus focuses on the respective roles and
responsibilities of directors and officers to
organisational stakeholders and of accounting and
auditing as support and control functions.
The syllabus then explores internal review, control,
and feedback to implement and support effective
governance, including compliance issues related to
decision-making and decision-support functions.
The syllabus also examines the whole area of
identifying, assessing, and controlling risk as a key
aspect of responsible management.
Finally, the syllabus covers personal and
professional ethics, ethical frameworks – and
professional values – as applied in the context of the
accountant’s duties and as a guide to appropriate
professional * and conduct in a variety of
situations.
DETAILED SYLLABUS
A Governance and responsibility
1. The scope of governance
2. Agency relationships and theories
3. The board of directors
4. Board committees
5. Directors’ remuneration
6. Different approaches to corporate governance
7. Corporate governance and corporate social
responsibility
8. Governance: reporting and disclosure
9. Public sector governance
B Internal control and review
1. Management control systems in corporate
governance
2. Internal control, audit and compliance in
corporate governance
3. Internal control and reporting
4. Management information in audit and internal
control
C Identifying and assessing risk
1. Risk and the risk management process
2. Categories of risk
3. Identification, assessment and measurement of
risk
D Controlling risk
1. Targeting and monitoring risk
2. Methods of controlling and reducing risk
3. Risk avoidance, retention and modelling
E Professional values, ethics and social
responsibility
1. Ethical theories
2. Different approaches to ethics and social
responsibility
3. Professions and the public interest
4. Professional practice and codes of ethics
5. Conflicts of interest and the consequences of
unethical *
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6. Ethical characteristics of professionalism
7. Social and environmental issues in the conduct
of business and of ethical *
APPROACH TO EXAMINING THE SYLLABUS
The syllabus will be assessed by a three-hour paperbased
examination. The examination paper will be
structured in two sections. Section A will be based
on a case study style question comprising a
compulsory 50 mark question, with requirements
based on several parts with all parts relating to the
same case information. The case study will usually
assess a range of subject areas across the syllabus
and will require the candidate to demonstrate high
level capabilities to *uate, relate and apply the
information in the case study to several of the
requirements.
Section B comprises three questions of 25 marks
each, of which candidates must answer two. These
questions will be more likely to assess a range of
discrete subject areas from the main syllabus
section headings, but may require application,
*uation and the synthesis of information
contained within short scenarios in which some
requirements may need to be contextualised.
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Study Guide
A GOVERNANCE AND RESPONSIBILITY
1. The scope of governance
a) Define and explain the meaning of corporate
governance.[2]
b) Explain, and analyse the issues raised by the
development of the joint stock company as the
dominant form of business organisation and
the separation of ownership and control over
business activity.[3]
c) Analyse the purposes and objectives of
corporate governance.[2]
d) Explain, and apply in context of corporate
governance, the key underpinning concepts
of: [3]
i) fairness
ii) openness/transparency
iii) innovation
iv) scepticism
iii) independence
iv) probity/honesty
v) responsibility
vi) accountability
vii) reputation
viii)judgment
ix) integrity
e) Explain and assess the major areas of
organisational life affected by issues in
corporate governance.[3]
i) duties of directors and functions of the
board (including setting a responsible ‘tone’
from the top and being accountable for the
performance and impacts of the
organisation)
ii) the composition and balance of the board
?。╝nd board committees)
iii) relevance and reliabilityof corporate
reporting and external auditing
iv) directors’ remuneration and rewards
v) responsibility of the board for risk
management systems and internal control
vi) the rights and responsibilities of
shareholders, including institutional
investors
vii) corporate social responsibility and business
ethics.
f) Compare, and distinguish between public,
private and non-governmental organisations
?。∟GO) sectors with regard to the issues raised
by, and scope of, governance.[3]
g) Explain and *uate the roles, interests and
claims of, the internal parties involved in
corporate governance.[3]
i) Directors
ii) Company secretaries
iii) Sub-board management
iv) Employee representatives (e.g. trade
unions)
h) Explain and *uate the roles, interests and
claims of, the external parties involved in
corporate governance.[3]
i) Shareholders (including shareholders’ rights
and responsibilities)
ii) Auditors
iii) Regulators
iv) Government
v) Stock exchanges
vi) Small investors (and minority rights)
vii) Institutional investors (see also next point)
i) Analyse and discuss the role and influence of
institutional investors in corporate governance
systems and structures, for example the
roles and influences of pension funds,
insurance companies and mutual funds.[2]
2. Agency relationships and theories
a) Define and explore agency theory.[2]
b) Define and explain the key concepts in agency
theory.[2]
i) Agents
ii) Principals
iii) Agency
iv) Agency costs
v) Accountability
vi) Fiduciary responsibilities
vii) Stakeholders
c) Explain and explore the nature of the principalagent
relationship in the context of corporate
governance.[3]
d) Analyse and critically *uate the nature of
agency accountability in agency relationships.[3]
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e) Explain and analyse the following other
theories used to explain aspects of the agency
relationship.[2]
i) Transaction costs theory
ii) Stakeholder theory
3. The board of directors
a) Explain and *uate the roles and
responsibilities of boards of directors.[3]
b) Describe, distinguish between and *uate the
cases for and against, unitary and two-tier
board structures.[3]
c) Describe the characteristics, board composition
and types of, directors (including defining
executive and non-executive directors (NED)。[2]
d) Describe and assess the purposes, roles and
responsibilities of NEDs.[3]
e) Describe and analyse the general principles of
legal and regulatory frameworks within which
directors operate on corporate boards:[2]
i) legal rights and responsibilities,
ii) time-limited appointments
iii) retirement by rotation,
iv) service contracts,
v) removal,
vi) disqualification
vii) conflict and disclosure of interests
viii)insider dealing/trading
f) Define, explore and compare the roles of the
chief executive officer and company
chairman.[3]
g) Describe and assess the importance and
execution of, induction and continuing
professional development of directors on
boards of directors.[3]
h) Explain and analyse the frameworks for
assessing the performance of boards and
individual directors (including NEDs) on
boards.[2]
i) Explain the meanings of ‘diversity’ and
critically *uate issues of diversity on boards
of directors.[3]
4. Board committees
a) Explain and assess the importance, roles and
accountabilities of, board committees in
corporate governance.[3]
b) Explain and *uate the role and purpose of
the following committees in effective corporate
governance:[3]
i) Remuneration committees
ii) Nominations committees
iii) Risk committees.
iv) Audit committees
5. Directors’ remuneration
a) Describe and assess the general principles of
remuneration. [3]
i) purposes
ii) components
iii) links to strategy
iv) links to labour market conditions.
b) Explain and assess the effect of various
components of remuneration packages on
directors’ *. [3]
i) basic salary
ii) performance related
iii) shares and share options
iv) loyalty bonuses
v) benefits in kind
vi) pension benefits
c) Explain and analyse the legal, ethical,
competitive and regulatory issues associated
with directors’ remuneration.[3]
6. Different approaches to corporate governance
a) Describe and compare the essentials of ‘rules’
and ‘principles’ based approaches to corporate
governance. Includes discussion of ‘comply or
explain’。[3]
b) Describe and analyse the different models of
business ownership that influence different
governance regimes (e.g. family firms versus
joint stock company-based models)。[2]
c) Describe and critically *uate the reasons
behind the development and use of codes of
practice in corporate governance
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(acknowledging national differences and
convergence)。[3]
d) Explain and briefly explore the development of
corporate governance codes in principles-based
jurisdictions.[2]
i) impetus and background
ii) major corporate governance codes
iii) effects of
e) Explain and explore the Sarbanes-Oxley Act
?。?002) as an example of a rules-based
approach to corporate governance.[2]
i) impetus and background
ii) main provisions/contents
iii) effects of
f) Describe and explore the objectives, content
and limitations of, corporate governance codes
intended to apply to multiple national
jurisdictions.[2]
i) Organisation for economic cooperation and
development (OECD) Report (2004)
ii) International corporate governance network
?。↖CGN) Report (2005)
7. Corporate governance and corporate social
responsibility
a) Explain and explore social responsibility in the
context of corporate governance.[2]
b) Discuss and critically assess the concept of
stakeholders and stakeholding in organisations
and how this can affect strategy and corporate
governance.[3]
c) Analyse and *uate issues of ‘ownership,’
‘property’ and the responsibilities of ownership
in the context of shareholding.[3]
d) Explain the concept of the organisation as a
corporate citizen of society with rights and
responsibilities.[3]
8. Governance: reporting and disclosure
a) Explain and assess the general principles of
disclosure and communication with
shareholders.[3]
b) Explain and analyse ‘best practice’ corporate
governance disclosure requirements.[2]
c) Define and distinguish between mandatory and
voluntary disclosure of corporate information in
the normal reporting cycle.[2]
d) Explain and explore the nature of, and reasons
and motivations for, voluntary disclosure in a
principles-based reporting environment
?。╟ompared to, for example, the reporting
regime in the USA)。[3]
e) Explain and analyse the purposes of the annual
general meeting and extraordinary general
meetings for information exchange between
board and shareholders.[2]
f) Describe and assess the role of proxy voting in
corporate governance.[3].
9. Public sector governance
a) Describe, compare and contrast public sector,
private sector, charitable status and nongovernmental
?。∟GO and quasi-NGOs) forms of
organisation, including purposes and
objectives, performance, ownership and
stakeholders (including lobby groups)[2]
b) Describe, compare and contrast the different
types of public sector organisations at
subnational, national and supranational level[2]
c) Assess and *uate the strategic objectives,
leadership and governance arrangements
specific to public sector organisations as
contrasted with private sector[3].
d) Discuss and assess the nature of democratic
control, political influence and policy
implementation in public sector organisations
including the contestable nature of public
sector policy[3].
B INTERNAL CONTROL AND REVIEW
1. Management control systems in corporate
governance
a) Define and explain internal management
control.[2]
b) Explain and explore the importance of internal
control and risk management in corporate
governance.[3]
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c) Describe the objectives of internal control
systems.[2]
d) Identify, explain and *uate the corporate
governance and executive management roles in
risk management (in particular the separation
between responsibility for ensuring that
adequate risk management systems are in
place and the application of risk management
systems and practices in the organisation)。[3]
e) Identify and assess the importance of the
elements or components of internal control
systems.[3]
2. Internal control, audit and compliance in
corporate governance
a) Describe the function and importance of
internal audit.[1]
b) Explain, and discuss the importance of, auditor
independence in all client-auditor situations
?。╥ncluding internal audit)。[3]
c) Explain, and assess the nature and sources of
risks to, auditor independence. Assess the
hazard of auditor capture.[3]
d) Explain and *uate the importance of
compliance and the role of the internal audit
function in internal control.[3]
e) Explore and *uate the effectiveness of
internal control systems.[3]
f) Describe and analyse the work of the internal
audit committee in overseeing the internal
audit function.[2]
g) Explain and explore the importance and
characteristics of, the audit committee’s
relationship with external auditors.[2]
3. Internal control and reporting
a) Describe and assess the need to report on
internal controls to shareholders.[3]
b) Describe the content of a report on internal
control and audit.[2]
c) Explain and assess how internal controls
underpin and provide information for
accurate financial reporting.[3]
4. Management information in audit and internal
control
a) Explain and assess the need for adequate
information flows to management for the
purposes of the management of internal control
and risk.[3]
b) Evaluate the qualities and characteristics
of information required in internal control and
risk management and monitoring.[3]
C IDENTIFYING AND ASSESSING RISK
1. Risk and the risk management process
a) Define and explain risk in the context of
corporate governance.[2]
b) Define and describe management
responsibilities in risk management.[2]
c) Explain the dynamic nature of risk
assessment.[2]
d) Explain the importance and nature of
management responses to changing risk
assessments.[2]
e) Explain risk appetite and how this affects risk
policy.[2]
2. Categories of risk
a) Define and compare (distinguish between)
strategic and operational risks.[2]
b) Define and explain the sources and impacts of
common business risks.[2]
i) market
ii) credit
iii) liquidity
iv) technological
v) legal
vi) health, safety and environmental
vii) reputation
viii)business probity
ix) derivatives
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c) Describe and *uate the nature and
importance of business and financial risks.[3]
d) Recognise and analyse the sector or industry
specific nature of many business risks.[2]
3. Identification, assessment and measurement
of risk
a) Identify, and assess the impact upon, the
stakeholders involved in business risk.[3]
b) Explain and analyse the concepts of assessing
the severity and probability of risk events.[2]
c) Describe and *uate a framework for board
level consideration of risk.[3]
d) Describe the process of and importance of,
externally reporting on internal control and
risk.[2]
e) Explain the sources, and assess the importance
of, accurate information for risk management.[3]
f) Explain and assess the ALARP (as low as
reasonably practicable) principle in risk
assessment and how this relates to severity
and probability.[3]
g) Evaluate the difficulties of risk perception
including the concepts of objective and
subjective risk perception.[3]
h) Explain and *uate the concepts of related
and correlated risk factors.[3]
D CONTROLLING AND MANAGING RISK
1. Targeting and monitoring of risk
a) Explain and assess the role of a risk manager
in identifying and monitoring risk.[3]
b) Explain and *uate the role of the risk
committee in identifying and monitoring risk.[3]
c) Describe and assess the role of internal or
external risk auditing in monitoring risk.[3]
2. Methods of controlling and reducing risk
a) Explain the importance of risk awareness at all
levels in an organisation.[2]
b) Describe and analyse the concept of
embedding risk in an organisation’s systems
and procedures.[3]
c) Describe and *uate the concept of
embedding risk in an organisation’s culture and
values.[3]
d) Explain and analyse the concepts of spreading
and diversifying risk and when this would be
appropriate.[2]
e) Identify and assess how business organisations
use policies and techniques to mitigate various
types of business and financial risks.[3]
3. Risk avoidance, retention and modelling
a) Explain, and assess the importance of, risk
transference, avoidance, reduction and
acceptance.[3]
b) Explain and *uate the different attitudes to
risk and how these can affect strategy.[3]
c) Explain and assess the necessity of incurring
risk as part of competitively managing a
business organisation.[3]
d) Explain and assess attitudes towards risk and
the ways in which risk varies in relation to the
size, structure and development of an
organisation [3]
E PROFESSIONAL VALUES, ETHICS AND
SOCIAL RESPONSIBILITY
1. Ethical theories
a) Explain and distinguish between the ethical
theories of relativism and absolutism.[2]
b) Explain, in an accounting and governance
context, Kohlberg’s stages of human moral
development.[3]
c) Describe and distinguish between deontological
and teleological/consequentialist approaches to
ethics.[2]
d) Apply commonly used ethical decision-making
models in accounting and professional
contexts [2]
i) American Accounting Association model
ii) Tucker’s 5-question model
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2. Different approaches to ethics and social
responsibility.
a) Describe and *uate Gray, Owen & Adams
(1996) seven positions on social
responsibility.[2]
b) Describe and *uate other constructions of
corporate and personal ethical stance:[2]
i) short-term shareholder interests
ii) long-term shareholder interests
iii) multiple stakeholder obligations
iv) shaper of society
c) Describe and analyse the variables determining
the cultural context of ethics and corporate
social responsibility (CSR)。[2]
d) Explain and *uate the concepts of 'CSR
strategy' and 'strategic CSR' [2].
3. Professions and the public interest
a) Explain and explore the nature of a
‘profession’ and ‘professionalism’。[2]
b) Describe and assess what is meant by ‘the
public interest’。[2]
c) Describe the role of, and assess the
widespread influence of, accounting as a
profession in the organisational context.[3]
d) Analyse the role of accounting as a profession
in society.[2]
e) Recognise accounting’s role as a value-laden
profession capable of influencing the
distribution of power and wealth in society.[3]
f) Describe and critically *uate issues
surrounding accounting and acting against the
public interest.[3]
4. Professional practice and codes of ethics
a) Describe and explore the areas of *
covered by corporate codes of ethics.[3]
b) Describe and assess the content of, and
principles behind, professional codes
of ethics.[3]
c) Describe and assess the codes of ethics
relevant to accounting professionals such as
the IESBA (IFAC) or professional body codes.[3]
5. Conflicts of interest and the consequences of
unethical *
a) Describe and *uate issues associated with
conflicts of interest and ethical conflict
resolution.[3]
b) Explain and *uate the nature and impacts of
ethical threats and safeguards.[3]
c) Explain and explore how threats to
independence can affect ethical *.[3]
d) Explain and explore 'bribery' and 'corruption' in
the context of corporate governance, and
assess how these can undermine confidence
and trust. [3]
e) Describe and assess best practice measures for
reducing and combating bribery and
corruption, and the barriers to implementing
such measures.[3]
6. Ethical characteristics of professionalism
a) Explain and analyse the content and nature of
ethical decision-making using content from
Kohlberg’s framework as appropriate.[2]
b) Explain and analyse issues related to the
application of ethical * in a
professional context.[2]
c) Describe and discuss ‘rules based’ and
‘principles based’ approaches to resolving
ethical dilemmas encountered in professional
accounting.[2]
7. Integrated reporting and sustainability issues in
the conduct of business
a) Explain and assess the concept of integrated
reporting and *uate the issues
concerning accounting for sustainability
?。╥ncluding the alternative definitions of
capital:.[3]
?。╥) Financial
?。╥i) Manufactured
? ACCA 2014 All rights reserved.
13
(iii) Intellectual
?。╥v) Human
?。╲) Social and relationship
?。╲i) Natural
b) Describe and assess the social and
environmental impacts that economic activity
can have (in terms of social and environmental
‘footprints’ and environmental reporting))。[3]
c) Describe the main features of internal
management systems for underpinning
environmental and sustainability accounting
such as EMAS and ISO 14000.[1]
d) Explain and assess the typical content
elements and guiding principles of an
integrated report, and discuss
the usefulness of this information to
stakeholders.[3]
e) Explain the nature of social and environmental
audit and *uate the contribution it can make
to the assurance of integrated reports .[3]
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14
SUMMARY OF CHANGES TO P1
ACCA annually reviews its qualification so that they fully meet the needs of stakeholders including employers,
students, regulatory and advisory bodies and learning providers. These syllabus changes are effective from
December 2014 and thereafter will be updated with effect from 1st September each year, from September 2015
onwards.
The changes are introduced to the syllabus to reflect the latest business and educational developments affecting
this paper. These are summarised in the table below.
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15
Section and subject area Syllabus content
A1d) Addition of new (iii) and (iv) Explain, and apply in context of corporate governance,
the key underpinning concepts
of: [3]
i) fairness
ii) openness/transparency
iii) innovation
iv) scepticism
iii) independence
iv) probity/honesty
v) responsibility
vi) accountability
vii) reputation
viii)judgment
ix) integrity
A1e) Amended to add references to integrated
reporting principles
Explain and assess the major areas of organisational life
affected by issues in corporate governance.[3]
i) duties of directors and functions of the board
?。╥ncluding setting a responsible ‘tone’ from the
top and being accountable for the performance
and impacts of the organisation)
ii) the composition and balance of the board
?。╝nd board committees)
iii) relevance and reliability of corporate reporting
and external auditing
iv) directors’ remuneration and rewards
New A9 subject area added on public sector
governance.
9. Public sector governance
a) Describe, compare and contrast public sector,
private sector, charitable status and nongovernmental
?。∟GO and quasi-NGOs) forms of
organisation, including purposes, ownership and
stakeholders (including lobby groups)[2]
b) Describe, compare and contrast the different
types of public sector organisations at
subnational, national and supranational level[2]
c) Assess and *uate the strategic objectives and
governance arrangements specific to public sector
organisations as contrasted with private sector[3].
d) Discuss and assess the nature of democratic
control, political influence and policy
implementation in public sector organisations
including the contestable nature of public sector
policy[3]
Section E title amended to specifically mention social
responsibility and to reflect greater emphasis on
integrated reporting principles in E7 of this section
see below:
E PROFESSIONAL VALUES, ETHICS AND SOCIAL
RESPONSIBILITY
E2d added to cover strategic aspects of CSR d) Explain and *uate the concepts of 'CSR
strategy' and 'strategic CSR' [2].
Heading of E7 changed to specifically refer to
integrated reporting
7. Integrated reporting and sustainability issues in
the conduct of business
? ACCA 2014 All rights reserved.
16
Section and subject area b) Syllabus content
E7a added to reflect integrated reporting aspects of
sustainability
c) Explain and assess the concept of integrated
reporting and *uate the issues concerning
accounting for sustainability (including the
alternative definitions of capital:.[3]
?。╲ii) Financial
(viii) Manufactured
?。╥x) Intellectual
(x) Human
?。▁i) Social and relationship
?。▁ii) Natural
E7b) amended to refer to impacts of an organisation b) Describe and assess the social and
environmental impacts that economic activity can
have (in terms of social and environmental
‘footprints’ and environmental reporting))。[3]
Old E7b) Deleted b) Explain and assess the concept of sustainability
and *uate the issues concerning
accounting for sustainability (including the
contribution of ‘full cost’ accounting)。[3
New E7c) amended to include reference to
sustainability accounting
c) Describe the main features of internal
management systems for underpinning
environmental and sustainability accounting such
as EMAS and ISO 14000.[1]
New E7d) amended to include specific reference to
integrated reporting
d) Explain and assess the typical content elements
and guiding principles of an integrated report, and
discuss
the usefulness of this information to
stakeholders.[3]
New E7e) amended to include reference to integrated
reporting implications for audit
e) Explain the nature of social and environmental
audit and *uate the contribution it can make to
the assurance of integrated reports.
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