Code of Ethics for Professional Accountants
Chapter 2
Professional Ethics and Conduct
Overview
•
•
•
•
Roles and duties of professional accountants
Ethical principles of auditors
Technical and ethical competence of auditors
Essential disciplinary measures for auditors
2
Concept of a profession
• Five attributes of a profession
– a systematic body of theory
– authority of professional bodies
– community sanction for control over membership and accreditation
– ethical codes
– a professional culture
3
The duties, rights and values of a professional accountant
• Duties to sustain a fiduciary (duty of care) relationship – behaviour that espouses responsible values
– continual attention to the requirements of clients and other stakeholders
– acquire and maintain the required skills and knowledge • Overall, maintain a credible reputation for the profession 4
The duties, rights and values of a professional accountant cont ’
• Values required to carry out duties and maintain rights include the following:
–
–
–
–
–
–
honesty integrity the exercise of due care objectivity confidentiality competence • The above assumes a commitment to put the public, the client, the profession and the employer ahead of any selfinterest
5
An understanding of ethics and ethical issues
• The word ‘ethics’ is derived from the Greek word ethos, meaning ‘character’
• Whereas morality focuses on the ‘good’ and
‘bad’ of human behaviour, ethics focuses on what is ‘right’ and ‘wrong’, and how and why people act in a certain manner
• Focuses on a study of choices, standards and behaviour 6
Professional Ethics and the
Accountant
• The nature of ethics
– Teleology
– Deontology
– Virtue ethics
– Ethical relativism
Ethical Decision Making –
AAA Model
1.
What are the facts of the case?
2.
What are the ethical issues in the case?
3.
What are the norms, principles and values related to the case? 4.
What are the alternative
Professional Ethics and Conduct
Overview
•
•
•
•
Roles and duties of professional accountants
Ethical principles of auditors
Technical and ethical competence of auditors
Essential disciplinary measures for auditors
2
Concept of a profession
• Five attributes of a profession
– a systematic body of theory
– authority of professional bodies
– community sanction for control over membership and accreditation
– ethical codes
– a professional culture
3
The duties, rights and values of a professional accountant
• Duties to sustain a fiduciary (duty of care) relationship – behaviour that espouses responsible values
– continual attention to the requirements of clients and other stakeholders
– acquire and maintain the required skills and knowledge • Overall, maintain a credible reputation for the profession 4
The duties, rights and values of a professional accountant cont ’
• Values required to carry out duties and maintain rights include the following:
–
–
–
–
–
–
honesty integrity the exercise of due care objectivity confidentiality competence • The above assumes a commitment to put the public, the client, the profession and the employer ahead of any selfinterest
5
An understanding of ethics and ethical issues
• The word ‘ethics’ is derived from the Greek word ethos, meaning ‘character’
• Whereas morality focuses on the ‘good’ and
‘bad’ of human behaviour, ethics focuses on what is ‘right’ and ‘wrong’, and how and why people act in a certain manner
• Focuses on a study of choices, standards and behaviour 6
Professional Ethics and the
Accountant
• The nature of ethics
– Teleology
– Deontology
– Virtue ethics
– Ethical relativism
Ethical Decision Making –
AAA Model
1.
What are the facts of the case?
2.
What are the ethical issues in the case?
3.
What are the norms, principles and values related to the case? 4.
What are the alternative