Cima Code of Ethics
For professional accountants
CIMA CODE OF ETHICS
October 2010
CIMA CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS CIMA PREFACE As Chartered Management Accountants CIMA members (and registered students) throughout the world have a duty to observe the highest standards of conduct and integrity, and to uphold the good standing and reputation of the profession. They must also refrain from any conduct which might discredit the profession. Members and registered students must have regard to these guidelines irrespective of their field of activity, of their contract of employment or of any other professional memberships they may hold. CIMA upholds the aims and principles of equal opportunities and fundamental human rights worldwide, including the handling of personal information. The Institute promotes the highest ethical and business standards, and encourages its members to be good and responsible professionals. Good ethical behaviour may be above that required by the law. In a highly competitive, complex business world, it is essential that CIMA members sustain their integrity and remember the trust and confidence which is placed on them by whoever relies on their objectivity and professionalism. Members must avoid actions or situations which are inconsistent with their professional obligations. They should also be guided not merely by the terms but by the spirit of this Code. CIMA members should conduct themselves with courtesy and consideration towards all with whom they have professional dealings and should not behave in a manner which could be considered offensive or discriminatory. To ensure that CIMA members protect the good standing and reputation of the profession, members must report the fact to the Institute if they are convicted or disqualified from acting as an officer of a company or if they are subject to any sanction resulting from disciplinary action taken by any other body or authority. CIMA has adopted the following code of ethics. This code is
CIMA CODE OF ETHICS
October 2010
CIMA CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS CIMA PREFACE As Chartered Management Accountants CIMA members (and registered students) throughout the world have a duty to observe the highest standards of conduct and integrity, and to uphold the good standing and reputation of the profession. They must also refrain from any conduct which might discredit the profession. Members and registered students must have regard to these guidelines irrespective of their field of activity, of their contract of employment or of any other professional memberships they may hold. CIMA upholds the aims and principles of equal opportunities and fundamental human rights worldwide, including the handling of personal information. The Institute promotes the highest ethical and business standards, and encourages its members to be good and responsible professionals. Good ethical behaviour may be above that required by the law. In a highly competitive, complex business world, it is essential that CIMA members sustain their integrity and remember the trust and confidence which is placed on them by whoever relies on their objectivity and professionalism. Members must avoid actions or situations which are inconsistent with their professional obligations. They should also be guided not merely by the terms but by the spirit of this Code. CIMA members should conduct themselves with courtesy and consideration towards all with whom they have professional dealings and should not behave in a manner which could be considered offensive or discriminatory. To ensure that CIMA members protect the good standing and reputation of the profession, members must report the fact to the Institute if they are convicted or disqualified from acting as an officer of a company or if they are subject to any sanction resulting from disciplinary action taken by any other body or authority. CIMA has adopted the following code of ethics. This code is
References: are to paragraph number. acceptance clients 210.1-210.5 engagements 210.6-210.8 advocacy threats 100.12 public practice 200.6 appointments see professional appointments association with false or misleading information 110.2 behaviour, professional 100.5, 150.1-150.2 breaches of ethical requirements duty to report 100.16 business, professional accountants in competence and due care 330.1-330.4 conflicts of interest 310.1-310.3 ethics-based culture 300.5 financial interests 340.1-340.3 legal form of relationship with employing organization 300.3 offers of inducements making 350.5-350.8 receiving 350.1-350.4 preparation and reporting of information 320.1-320.6 promoting the organization 300.10 responsibilities 300.2, 300.4 safeguards 300.13-300.15 threats 300.7-300.13 client acceptance 210.1-210.4 periodical reviews of recurring client engagements 210.5 client assets, custody of 270.1-270.3 client consent to act for another party 220.6 commission 240.5- 240.7 competence see professional competence and due care complaints systems 100.16 confidentiality 100.5, 140.1-140.6 disclosure of confidential information 140.7-140.8 use of confidential information for personal advantage 100.5 conflicts of interest business, professional accountants in 310.1-310.3 public practice 220.1-220.5 client consent to act for another party 220.6 contingent fees 240.3- 240.4 36 continuing professional development 130.3 CIMA CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS custody of client assets 270.1-270.3 diligence see professional competence and due care disclosure of confidential information 140.7-140.8 due care see professional competence and due care duty to report breaches of ethical requirements 100.16 engagement acceptance 210.6-210.8 engagement period see period of engagement ethical conflict resolution 100.17-100.22 ethics-based culture professional accountants in business 300.5 expert advice 210.8, 330.1 false information 110.2 familiarity threats 100.12 business, professional accountants in 300.11 public practice 200.7 fees 240.1-240.8 contingent fees 240.3 -240.4 referral fees and commission 240.5-240.7 business, professional accountants in 340.1-340.3 fundamental principles 100.5 compliance with ethical conflict resolution 100.16-100.22 see also confidentiality; integrity; objectivity; professional behaviour; professional competence and due care; threats gifts from clients 260.1-260.3 guarantees see loans and guarantees hospitality from clients 260.1-260.3 inadvertent violations 100.10 documentation 200.12 see also fees; gifts from clients; hospitality from clients inducements making offers 350.5-350.8 receiving offers 350.1-350.4 integrity 100.5, 110.1-110.2 intimidation threats 100.12 business, professional accountants in 300.12 public practice 200.8 marketing 150.2, 250.1-250.2 37 CIMA CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS misleading information 110.2 modified reports 110.2 objectivity 100.5, 120.1-120.2 public practice 280.1-280.4 offers of inducements see inducements preparation and reporting of information professional accountants in business 320.1-320.6 professional accountants in business see business, professional accountants in professional accountants in public practice see public practice, professional accountants in professional appointments changes in 210.9-210.14 client acceptance 210.1-210.5 complimentary work to that of existing accountant 210.12 engagement acceptance 210.6-210.8 professional behaviour 100.5, 150.1-150.2 professional competence and due care 100.5 130.1-130.2, 130.6 awareness of limitations inherent in professional services 130.6 business, professional accountants in 330.1-330.3 maintenance of professional competence 130.3 training and supervision of subordinates 130.5 professional development, continuing 130.3 promoting the organization professional accountants in business 300.10 public interest, acting in 100.1 public practice, professional accountants in 200.1-200.2 conflicts of interest 220.1-220.6 custody of client assets 270.1-270.3 fees 240.1-240.8 gifts and hospitality 260.1-260.3 marketing professional services 250.1-250.2 objectivity 280.1-280.4 professional appointments 210.1-210.14 safeguards 200.9-200.15 second opinions 230.1-230.3 threats 200.3-200.10 purchase of another firm 240.8 referral fees 240.5-240.7 safeguards 100.13-100.16 business, professional accountants in 300.13- 300.15 documented policies 200.12 professional, legislative and regulatory 100.14 public practice 200.11-200.15 38 CIMA CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS second opinions 230.1- 230.2 communication with existing accountants 230.3 self-interest threats 100.12 business, professional accountants in 300.8 public practice 200.4 self-review threats 100.12 business, professional accountants in 300.9 public practice 200.5 subordinates training and supervision of 130.5 supervision of subordinates 130.5 terms of engagement client awareness 240.2 threats 100.12 business, professional accountants in 300.7 - 300.12 obligation to evaluate 100.8-100.9 public practice 200.3-200.10 see also advocacy threats; familiarity threats; intimidation threats; safeguards; self-interest threats; self-review threats training of subordinates 130.5 work environment safeguards 200.11 business, professional accountants in 300.14 clients’ systems and procedures 200.14-200.15 engagement-specific safeguards 200.13 firm-wide safeguards 200.12 39 CIMA CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS Chartered Institute of Management Accountants 26 Chapter Street London SW1P 4NP United Kingdom T. +44 (0)20 7663 5441 E. contact@cimaglobal.com www.cimaglobal.com © October 2010, Chartered Institute of Management Accountants PS002V0910