Accounting As a Profession

• Professional Office (code of behaviour)


  The moral principles and standards that govern the conduct of those working in the profession
• Factors that influence ethical views


  • Culture
  • Law
  • Consequence
• Code of ethics


  Issued by the International Federation of Accountants (IFAC) in 2003 due to recent high-profile corporate failures (Enron, Barings Bank, etc.)
• The code of ethics has been revised recently by the International Ethics Standards Board for Accountants (IESBA)
• Fundamental Principles of Ethical Behaviour


  • Integrity - being straightforward and honest in all professional and business relationships
  • Objectivity - avoiding bias, conflicts of interest or undue influence of others when making professional judgements
  • Professional Competence and Due Care - keeping knowledge and skills at the appropriate level in order to deliver the services to clients diligently
  • Confidentiality - avoiding the disclosure of information to others without a client's permission; not using information for personal advantage (the only exception being where there are legal or ethical reasons to provide the information)
  • Professional Behaviour - adapting to the highest standards of the profession, taking responsibility for personal actions, and avoiding any action that would discredit the profession
• Users of Accounting Information


  • Owners
  • Suppliers
  • Prospective buyers/partners
  • Tax inspectors