Business Ethics

A complete set of vocabulary flashcards covering basic accounting ethics, money laundering regulations, stakeholder obligations, and the ethical use of digital tools and AI based on the Higher Nitec lecture notes.

Financial reporting

The provision of useful financial information about an organisation to internal and external users for making business decisions and assessing management.

Assurance

The expression of an opinion or conclusion by a professional accountant in public practice to enhance the confidence of intended users.

Institute of Singapore Chartered Accountants (ISCA)

The governing body for the accounting profession in Singapore.

Ethics Pronouncement (EP) 100

The Code of Professional Conduct and Ethics issued by ISCA representing the fundamental principles for accounting professionals.

Integrity

The principle that imposes an obligation on accounting professionals to be straightforward and honest in all professional and business relationships.

Objectivity

The principle requiring professional judgement not to be compromised because of bias, conflict of interest, or undue influence of others.

Professional competence and due care

The obligation to maintain professional knowledge and skill while acting diligently in accordance with applicable technical and professional standards.

Confidentiality

The obligation to refrain from disclosing or using information acquired from professional relationships for personal or third-party advantage without authority.

Professional behaviour

The principle to comply with relevant laws and regulations and avoid any conduct that may discredit or adversely affect the reputation of the profession.

Self-interest threats

Threats caused by financial or other interests that inappropriately influence an accounting professional’s judgement or behaviour.

Advocacy threats

Threats that an accounting professional will promote an employer’s position to the point that their objectivity is compromised.

Familiarity threats

Threats that a long or close relationship with a client or employer causes an accountant to be too sympathetic to their interests.

Intimidation threats

Threats where an accounting professional is deterred from acting objectively because of actual or perceived pressures.

Safeguards

Actions or measures that eliminate threats to compliance with fundamental principles or reduce them to an acceptable level.

Money laundering

An illegal process where large amounts of money generated from criminal activities is disguised to appear as proceeds from a legitimate business.

Placement

The first stage of money laundering where illegally obtained funds and assets are brought into a financial institution.

Layering

The process of disguising the origin of illegal funds through multiple accounts, banks, and intermediaries to obscure the audit trail.

Integration

The final stage of money laundering where laundered, untraceable funds are reinserted into an economy to appear as legitimate.

Skimming

A cash fraud scheme involving the theft of money before it has been recorded in the books of a business.

Kickback

An illegal commission paid to someone in exchange for preferential treatment, usually at the expense of an employer.

Suspicious Transaction Reporting Office (STRO)

Singapore’s Financial Intelligence Unit that analyzes reports to detect money laundering and terrorism financing.

Customer due diligence (CDD)

Procedures to identify and verify the identity of a customer and beneficial owners before entering a business relationship.

Tipping off

The criminal offence of disclosing information that might compromise a money laundering investigation.

Terrorism financing

The direct or indirect act of providing or collecting property for terrorist acts, purposes, or dealing with the property of terrorists.

Corporate social responsibility (CSR)

A business approach involving awareness of economic, social, and environmental impacts and carrying out voluntary responsible actions.

Whistleblowing

An act where an individual exposes wrongdoing, illegal, or unethical information within an organisation to higher management or external authorities.

Active digital footprint

Data where a user deliberately shares information about themselves online through social media or websites.

Passive digital footprint

Information left behind unintentionally when using the internet, such as an IP address or browser history.

Like-farming

A scam where attention-grabbing stories are posted on Facebook to cultivate likes and shares for malicious downloads or phishing.

Personal Data Protection Act (PDPA)

Singaporean law that regulates the collection, use, and disclosure of personal data by organizations.