Page 155 - F1 - AB Integrated Workbook STUDENT 2018-19

Professional ethics in accounting and business

Professional ethics

2.1 What is a profession?

A profession, as opposed to other types of occupation, is
characterised by the following factors:

 the mastering of specialised skills during a period of training

 governance by a professional organisation

 compliance with an ethical code

 a process of certification before being allowed to practice

2.2 Professional code of ethics

Both the International Federation of Accountants (IFAC) and the ACCA have
developed codes of ethics for their members.

The ACCA Code is based on the IFAC code and takes a similar conceptual
framework approach, listing an identical set of Fundamental Ethical Principles that
must be followed.

Principle Description

Integrity Members should be straightforward and honest in all
professional/business relationships.

Objectivity Members do not allow bias or conflict of interest in
business judgements.

Professional competence There is a duty to maintain professional knowledge and
and due care skill at an appropriate level and to follow professional
standards.

Confidentiality Information on clients must not be disclosed without
appropriate authority, or used for personal advantage.

Professional behaviour Members must comply with relevant laws and avoid
actions that would discredit the profession.

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