Accounting As a Profession

Cards (6)

  • 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