Discuss the roles of professional accountants in

relation to their compliance to the By Laws of the

Malaysian Institute of Accountants as in this case.

In this case, all the accountants of EPM are considered professional members in
business and public practice which both must comply with the fundamental principles in Section
100 in the MIA By-Law. It also stated that all professional members of the public and business
must eliminate or reduce the threats to at acceptable levels. Encik Selamat is a Chartered
Professional Accountant According to Section 100.8 of the MIA By-Law, he is actually facing the
self-interest threat situation as he made benefit for its own personal benefit. This conflict can be
seen when he extended the credit of Gold Cold Sdn.Bhd. Self-interest threat can be in term of
financial or other interest that will inappropriately influence the professional accountant judgment.

Encik Selamat need to avoid or eliminate or reduce this threat as he can. According to
Section 320 of MIA By-Law which regards to the preparation and reporting of information, a
professional accountants responsibility to take reasonable steps to maintain information which
clearly need to describe the true nature of business transactions, assets or liabilities. Secondly,
classifies and records information in a timely and proper manner. Thirdly, represents the facts
accurately and completely in all material respects. It also stated that threats to compliance with
the fundamental principles. For example in this case, intimidation threats to objectivity or
professional competence due care.

On the other hand, Ms.Choy a credit controller of the company is being pressured to
decide whether or not to raise the case of Encik Selamats personal interest. The significance of
the threats will depends on factors such as the source of the pressure and the degree of
information is, or may be misleading. It is the duty of Ms.Choy and Puan Azura to reduce the
significant threats to an acceptable level. If Ms.Choy and other professional professional
accountants still cannot eliminate the threat of intimidation to the GM, they should diassociate
themselves from the information that can create the threat. As for the first way, they should
obtain legal information to report the actions of Encik Selamats personal interesy with Cold Gold
Sdn.Bhd. Or another way is to consider the resignation from company.