CPA 118 ETHICS NOTES
M 2
Professional ethics
Service Ideal
The wellbeing of society
The pursuit of excellence
Community service
Code of Ethics for Professional Accountants (APESB 2010)
Ensure high-quality service consistent with the reputation of the profession.
It provides guidance in conflict situations.
Conceptual framework approach
The code provides a conceptual framework approach to the application of the fundamental principles of professional conduct: 1. integrity
Honest and trust.
Accountants must not be associated with outputs that: contain materially false or misleading statements contain info furnished recklessly omit or obscure information where such would be misleading 2. objectivity
Must be impartial, honest and free from conflicts of interest
Intrinsically linked to independence, professional independence is seen to be a subset of integrity and objectivity. 3. professional competence and due care
Maintain professional knowledge and skill
Apply diligence 4. confidentiality 5. professional behavior the conceptual framework approach adopted in the Code is principles-based, setting forth the principles as well as rules of conduct.
Threats
Self-interest threats
Self-review threats
Advocacy threats - promoting a position or opinion that compromises objectivity
Familiarity threats: a close relationship where one becomes too sympathetic to others
Intimidation threats : actual or perceived and is a deterrent from acting objectively
An intimidation threat to an account's objective or competence and due care may arise where the accountant is pressured by a client.
Normative theories of ethics
Normative theories of ethics
Normative Theories of ethics
Teleological consequential
Right from wrong is determined from results or consequences of a decision or action
Identify consequences (costs and benefits) for each alternative course of action
Compare the ratio of costs and benefits (both
Professional ethics
Service Ideal
The wellbeing of society
The pursuit of excellence
Community service
Code of Ethics for Professional Accountants (APESB 2010)
Ensure high-quality service consistent with the reputation of the profession.
It provides guidance in conflict situations.
Conceptual framework approach
The code provides a conceptual framework approach to the application of the fundamental principles of professional conduct: 1. integrity
Honest and trust.
Accountants must not be associated with outputs that: contain materially false or misleading statements contain info furnished recklessly omit or obscure information where such would be misleading 2. objectivity
Must be impartial, honest and free from conflicts of interest
Intrinsically linked to independence, professional independence is seen to be a subset of integrity and objectivity. 3. professional competence and due care
Maintain professional knowledge and skill
Apply diligence 4. confidentiality 5. professional behavior the conceptual framework approach adopted in the Code is principles-based, setting forth the principles as well as rules of conduct.
Threats
Self-interest threats
Self-review threats
Advocacy threats - promoting a position or opinion that compromises objectivity
Familiarity threats: a close relationship where one becomes too sympathetic to others
Intimidation threats : actual or perceived and is a deterrent from acting objectively
An intimidation threat to an account's objective or competence and due care may arise where the accountant is pressured by a client.
Normative theories of ethics
Normative theories of ethics
Normative Theories of ethics
Teleological consequential
Right from wrong is determined from results or consequences of a decision or action
Identify consequences (costs and benefits) for each alternative course of action
Compare the ratio of costs and benefits (both