Showing posts with label Ethics. Show all posts
Showing posts with label Ethics. Show all posts
Friday, August 12, 2011
Why is Auditor Independence Important?
(1) Reliability of financial information
• Reliability of financial information is a key aspect of Corporate Governance.
• S/H and other stakeholders need a trustworthy record of directors’ stewardship to be able to take decision about company.
• Assurance provided by Auditors is a key quality control on the reliability of information.
(2) Credibility of financial information
• An unqualified report by independent external auditors on the account should give credibility and enhance the appeal of the company to investors.
• This unqualified report should represent the views of independent experts who are not motivated by personal interests to give a favourable opinion.
(3) Value for money of audit work
• A lack of independence seems to mean that important audit work may not be done, and thus shareholders are not receiving value for the audit fees.
(4) Threats to professional standards
• A lack of independence may lead to a failure to fulfill professional requirements to obtain enough evidence to form the basis of an audit opinion, in this case, to obtain details of a questionable material item.
• Failure by auditors to do this undermines the credibility of the accountancy profession and standards it enforces.
*********
Kohlberg’s Cognitive Moral Development Theories
Kohlberg’s cognitive moral development theories relate to the thought processes people go through when making ethical decisions.
Three Kohlberg levels
(1) Pre-conventional Level
At the preconventional level of moral reasoning, morality is conceived of in terms of rewards, punishments and instrumental motivations. Those demonstrating intolerance of regulations in preference for self-serving motives are typical preconventionalists.
Stage 1
Individual will see ethical decisions in terms of the rewards and punishments that will result:
• How will I be rewarded if I do this?
• What punishment will I suffer if I do this?
Stage 2
Individual will see ethical decisions in the more complex terms of acting in their own best interests. They will see decision in terms of the deals they can make and whether these deals are fair for them. For example it can mean helping others when others appear over-worked, but in return expecting others to help them when the situation is reversed.
(2) Conventional Level
At the conventional level, morality is understood in terms of ompliance with either or both of peer pressure/social expectations or regulations, laws and guidelines. A high degree of compliance is assumed to be a highly moral position.
Stage 3
Individual learning to live up to what is expected of them by their immediate circle (friends, workmates or even close competitors). An individual might feel pressured into staying out for a long lunch because everybody else in his team does. On the other hand the individual may feel he has to be at work by a certain time because everybody else is, even if it is earlier than their prescribed hours.
Stage 4
The individual operates in line with social cultural accord rather than just the opinion of those around them. This certainly means complying with the law as it codifies social accord. Stage 4 reasoning underlies most behaviour by accountants, as they comply with financial reporting and corporate governance requirements.
(3) Post-conventioanl Level
At the postconventional level, morality is understood in terms of conformance with ‘higher’ or ‘universal’ ethical principles. Postconventional assumptions often challenge existing regulatory regimes and social norms and so postconventional behaviour is often costly in personal terms.
Stage 5
What Individuals believe to be right is in terms of the basic values of their society, including ideas of mutual self-interest and the welfare of others. For example, is it right to charge interest?
Stage 6
Individuals base their decisions on wider universal ethical principles such as justice, equity or rights. It also means respecting the demands of individuals consciences. Business decisions made on these grounds could be disclosure on grounds of right-to-know that isn’t compelled by law, or stopping purchasing from suppliers who test products on animals, on the grounds that animal rights to be free from suffering should be respected. Using stage 6 reasoning may involve a personal cost, since it may mean failing to comply with existing social norms and regulations as they are seen as unethical.
Level 1: Preconventional level
Stage/Plane 1: Punishment-obedience orientation
Stage/Plane 2: Instrumental relativist orientation
Level 2: Conventional level
Stage/Plane 3: Good boy-nice girl orientation
Stage/Plane 4: Law and order orientation
Level 3: Postconventional level
Stage/Plane 5: Social contract orientation
Stage/Plane 6: Universal ethical principle orientation
**********
Three Kohlberg levels
(1) Pre-conventional Level
At the preconventional level of moral reasoning, morality is conceived of in terms of rewards, punishments and instrumental motivations. Those demonstrating intolerance of regulations in preference for self-serving motives are typical preconventionalists.
Stage 1
Individual will see ethical decisions in terms of the rewards and punishments that will result:
• How will I be rewarded if I do this?
• What punishment will I suffer if I do this?
Stage 2
Individual will see ethical decisions in the more complex terms of acting in their own best interests. They will see decision in terms of the deals they can make and whether these deals are fair for them. For example it can mean helping others when others appear over-worked, but in return expecting others to help them when the situation is reversed.
(2) Conventional Level
At the conventional level, morality is understood in terms of ompliance with either or both of peer pressure/social expectations or regulations, laws and guidelines. A high degree of compliance is assumed to be a highly moral position.
Stage 3
Individual learning to live up to what is expected of them by their immediate circle (friends, workmates or even close competitors). An individual might feel pressured into staying out for a long lunch because everybody else in his team does. On the other hand the individual may feel he has to be at work by a certain time because everybody else is, even if it is earlier than their prescribed hours.
Stage 4
The individual operates in line with social cultural accord rather than just the opinion of those around them. This certainly means complying with the law as it codifies social accord. Stage 4 reasoning underlies most behaviour by accountants, as they comply with financial reporting and corporate governance requirements.
(3) Post-conventioanl Level
At the postconventional level, morality is understood in terms of conformance with ‘higher’ or ‘universal’ ethical principles. Postconventional assumptions often challenge existing regulatory regimes and social norms and so postconventional behaviour is often costly in personal terms.
Stage 5
What Individuals believe to be right is in terms of the basic values of their society, including ideas of mutual self-interest and the welfare of others. For example, is it right to charge interest?
Stage 6
Individuals base their decisions on wider universal ethical principles such as justice, equity or rights. It also means respecting the demands of individuals consciences. Business decisions made on these grounds could be disclosure on grounds of right-to-know that isn’t compelled by law, or stopping purchasing from suppliers who test products on animals, on the grounds that animal rights to be free from suffering should be respected. Using stage 6 reasoning may involve a personal cost, since it may mean failing to comply with existing social norms and regulations as they are seen as unethical.
Level 1: Preconventional level
Stage/Plane 1: Punishment-obedience orientation
Stage/Plane 2: Instrumental relativist orientation
Level 2: Conventional level
Stage/Plane 3: Good boy-nice girl orientation
Stage/Plane 4: Law and order orientation
Level 3: Postconventional level
Stage/Plane 5: Social contract orientation
Stage/Plane 6: Universal ethical principle orientation
**********
Professionalism and Public Interest
Public Interest is the collective well-being of the community of people and institutions the professional accountant serves, including clients, lenders, governments, employers, employees, investors, the business and financial community and others who rely on the work of professional accountants. (IFAC)
Professionalism means avoiding actions that bring discredit on the accountancy profession.
Professional behavior imposes an obligation on professional accountants to comply with relevant laws and regulations.
Professionalism means to:
• Maintain confidentiality and upholding ethical standards.
• Should avoid making exaggerated claims for their own services, qualifications and experience
• Dealing with professional colleagues - work well with other team members, deal appropriately with concerns they raise about the work they are doing. They set an example to junior staff.
***********
Professionalism means avoiding actions that bring discredit on the accountancy profession.
Professional behavior imposes an obligation on professional accountants to comply with relevant laws and regulations.
Professionalism means to:
• Maintain confidentiality and upholding ethical standards.
• Should avoid making exaggerated claims for their own services, qualifications and experience
• Dealing with professional colleagues - work well with other team members, deal appropriately with concerns they raise about the work they are doing. They set an example to junior staff.
***********
Public Interest in accounting profession
Public interest is the collective wellbeing of the community of people and institutions that the professional accountant serves, including the business and financial community and others who rely on the work of professional accountants.
Trust is a key issue in terms of the public interest as it relates to accountants. The working of capital markets depends upon reliable financial information, as does business decision-making affecting jobs and supply. The public has to be able to believe that accountants’ opinions are give on a basis of sufficient work and that they are unaffected by external pressures.
Accountants who provide audit or assurance services must be able to demonstrate clearly their detachment from the client. They cannot do this if they are providing other services to the client.
*******
Professional Codes
Limitation of Professional Codes
1. Treatment as Rules
Because they contain descriptions of situations that accountants might encounter, they can convey the (false) impression that professional ethics can be reduced to a set of rules contained in a code. This would be a mistaken impression, of course, as the need for personal integrity is also emphasised.
2. Cannot cover all circumstances
Ethical codes do not and cannot capture all ethical circumstances and dilemmas that a professional accountant will encounter in his or her career and this reinforces the need for accountants to understand the underlying ethical principles of probity, integrity, openness, transparency and fairness.
3. Regional differences
Although codes such as IFAC’s are intended to apply to an international ‘audience’, some may argue that regional variations in cultural, social and ethical norms mean that such codes cannot capture important differences in emphasis in some parts of the world. The oral ‘right’ can be prescribed in every situation.
4. Legal enforcement
Finally, professional codes of ethics are not technically enforceable in any legal manner although sanctions exist for gross breach of the code in some jurisdictions. Individual observance of ethical codes is effectively voluntary in most circumstances.
******************
Usefulness of Professional Codes
1 Fundamental Principles
Firstly, professional codes of ethics signal the importance, to accountants, of ethics and acting in the public interest in the professional accounting environment. They are reminded, unambiguously and in ‘black and white’ for example, that as with other professions, accounting exists to serve the public good and public support for the profession is likely to exist only as long as the public interest is supported over and above competing interests.
2. Internally expected standards
The major international codes (such as IFAC) underpin national and regional cultures with internationally expected standards that, the codes insist, supersede any national ethical nuances. The IFAC (2003) code states (in clause 4), “the accountancy profession throughout the world operates in an environment with different cultures and regulatory requirements. The basic intent of the Code, however, should always be respected.”
3. Minimum Standard
The codes prescribe minimum standards of behaviour expected in given situations and give specific examples of potentially problematic areas in accounting practice. In such situations, the codes make the preferred course of action unambiguous.
4. Building confidence in the profession
A number of codes of ethics exist for professional accountants. Prominent among these is the IFAC code. This places the public interest at the heart of the ethical conduct of accountants. The ACCA code discusses ethics from within a principles-based perspective. Other countries’ own professional accounting bodies have issued their own codes of ethics in the belief that they may better describe the ethical situations in those countries.
**********
1. Treatment as Rules
Because they contain descriptions of situations that accountants might encounter, they can convey the (false) impression that professional ethics can be reduced to a set of rules contained in a code. This would be a mistaken impression, of course, as the need for personal integrity is also emphasised.
2. Cannot cover all circumstances
Ethical codes do not and cannot capture all ethical circumstances and dilemmas that a professional accountant will encounter in his or her career and this reinforces the need for accountants to understand the underlying ethical principles of probity, integrity, openness, transparency and fairness.
3. Regional differences
Although codes such as IFAC’s are intended to apply to an international ‘audience’, some may argue that regional variations in cultural, social and ethical norms mean that such codes cannot capture important differences in emphasis in some parts of the world. The oral ‘right’ can be prescribed in every situation.
4. Legal enforcement
Finally, professional codes of ethics are not technically enforceable in any legal manner although sanctions exist for gross breach of the code in some jurisdictions. Individual observance of ethical codes is effectively voluntary in most circumstances.
******************
Usefulness of Professional Codes
1 Fundamental Principles
Firstly, professional codes of ethics signal the importance, to accountants, of ethics and acting in the public interest in the professional accounting environment. They are reminded, unambiguously and in ‘black and white’ for example, that as with other professions, accounting exists to serve the public good and public support for the profession is likely to exist only as long as the public interest is supported over and above competing interests.
2. Internally expected standards
The major international codes (such as IFAC) underpin national and regional cultures with internationally expected standards that, the codes insist, supersede any national ethical nuances. The IFAC (2003) code states (in clause 4), “the accountancy profession throughout the world operates in an environment with different cultures and regulatory requirements. The basic intent of the Code, however, should always be respected.”
3. Minimum Standard
The codes prescribe minimum standards of behaviour expected in given situations and give specific examples of potentially problematic areas in accounting practice. In such situations, the codes make the preferred course of action unambiguous.
4. Building confidence in the profession
A number of codes of ethics exist for professional accountants. Prominent among these is the IFAC code. This places the public interest at the heart of the ethical conduct of accountants. The ACCA code discusses ethics from within a principles-based perspective. Other countries’ own professional accounting bodies have issued their own codes of ethics in the belief that they may better describe the ethical situations in those countries.
**********
Integrity
The IFAC code of ethics (2005) s.110.1 explains integrity as follows:
The principle of integrity imposes an obligation on all professional accountants to be straightforward and honest in professional and business relationships. Integrity also implies fair dealing and truthfulness.
Integrity is therefore a steadfast adherence to strict ethical standards despite any other pressures to act otherwise. Integrity describes the personal ethical position of the highest standards of professionalism and probity. It is an underlying and underpinning principle of corporate governance and it is required that all those representing shareholder interests in agency relationships both possess and exercise absolute integrity at all times.
In terms of professional relationships, integrity is important for the following reasons:
Reliability
It provides assurance to colleagues of good intentions and truthfulness. It goes beyond any codes of professional behaviour and describes a set of character traits that mean a person of integrity can be trusted. For auditors such as Potto Sinter, integrity means not only observing the highest standards of professional behaviour but also maintaining the appearance of integrity to his own staff and also to the client.
Efficiency and Effectiveness
It reduces time and energy spent in monitoring when integrity and openness can be assumed (the opposite of an audit situation where the professional scepticism should be exercised). Costs will be incurred by Miller Dundas if colleagues feel that Potto Sinter is untrustworthy.
Promotion of control environment
It cultivates good working relationships in professional situations. It encourages a culture of mutual support that can have a beneficial effect on organisational effectiveness. John Wang’s professional relationship with Potto is very important to Miller Dundas. It is important, therefore, that Potto has personal integrity.
**************
Five types of Ethical Threats
(a) Self-interest
Self-interest means the accountant’s own interest being affected by the success of the client, or the continuation of the accountant-client relationship. An example would be a financial interest in a client.
If a firm providing audit and other services disagrees with the client over the accounts that it is auditing, it faces the risk of not just losing the income from the audit, but perhaps also the much greater income from providing other services.
(b) Self-review
Self-review means the accountants auditing or reviewing work that they themselves have prepared. This could include auditing work that has been prepared as part of a non-audit service, something that prompts the suggestion that firm should not provide more than one service to a client.
If the accountants provide other services that materially affect the content of the accounts, then they will have to audit figures that they themselves have prepared, for example valuations.
(c) Advocacy
Advocacy means strongly promoting the interests of the accountants’ clients and undermining the accountants’ objectivity. Accountants can be seen as acting in the clients’, rather than the public interest.
If an accountant provides legal advice to his audit client. There are two problems. Firstly providing that advice could be seen as promoting the client’s interests rather than the public interest. Secondly the accounts may need to contain provision for, or disclosure about, legal actions. This will depend on the likelihood of the success of legal action, which could in turn depend on the advice the accountant had given. Therefore there is a clear possibility of the accountant not wishing to undermine the advice he has given by taking a prudent view of the issues’ treatment in the accounts.
(d) Familiarity
Familiarity means dealing with a client’s affairs for a long time and developing a close relationship. This can lead to reliance on previous knowledge rather than a questioning approach to information supplied.
Friendships with clients may make it more likely that clients would listen to the accountant’s advice; critics, however, suggest the friendships meant that he placed excessive trust in what he was told, and would be unwilling to raise awkward issues that could jeopardize the friendships. The provision of other services may mean that accountants are less rigorous in auditing information with which their firm has been involved.
(e) Intimidation
Intimidation means conduct of the assignment or conduct towards the client being influenced by pressure exerted by the client.
This could mean that if the client wished to intimidate the accountant into giving advice that they wanted to hear, they would have a good idea of how to do so, by for example threatening to replace the firm as auditors.
*************
Deontology and Consequentialism
Deontological ethics
The deontological perspective can be broadly understood in terms of ‘means’ being more important than ‘ends’. It is broadly based on Kantian (categorical imperative) ethics. The rightness of an action is judged by its intrinsic virtue and thus morality is seen as absolute and not situational. An action is right if it would, by its general adoption, be of net benefit to society. Lying, for example, is deemed to be ethically wrong because lying, if adopted in all situations, would lead to the deterioration of society.
Consequentialist ethics
The consequentialist or teleological perspective is based on utilitarian or egoist ethics meaning that the rightness of an action is judged by the quality of the outcome.
From the egoist perspective, the quality of the outcome refers to the individual (“what is best for me?”). Utilitarianism measures the quality of outcome in terms of the greatest happiness of the greatest number (“what is best for the majority?”). Consequentialist ethics are therefore situational and contingent, and not absolute.
**********
Company Codes of Ethics
Purposes of codes of ethics
1. To convey the ethical values of the company to interested audiences including employees, customers, communities and shareholders.
2. To control unethical practice within the organisation by placing limits on behaviour and prescribing behaviour in given situation.
3. To be a stimulant to improved ethical behaviour in the organisation by insisting on full compliance with the code.
************
Contents of a corporate code of ethics
The typical contents are as follows:
(A) Values of the company
This might include notes on the strategic purpose of the organisation and any underlying beliefs, values, assumptions or principles. Values may be expressed in terms of social environmental perspectives and expressions of intent regarding compliance with best practice, etc.
(B) Shareholders and suppliers of finance
In particular, how the company views the importance of sources of finances, how it intends to communicate with them and any indications of how they will be treated in terms of transparency, truthfulness and honesty.
(C) Employees
Policies towards employees, which might include equal opportunities policies, training and development, recruitment, retention and removal of staff.
(D) Community and wider society
The manner in which the company aims to relate to a range of stakeholders with whom it does not have a direct economic relationship (eg neighbours, opinion formers, pressure groups etc).
It might include undertakings on consultation, ‘listening’. Seeking consent, partnership arrangements (eg in community relationships with local schools) and similar.
(E) Supply chain/suppliers
This is becoming important as stakeholders scrutinise where and how companies source their products (eg farming practice, GM foods, fair trade issues etc).
Ethical policy on supply chain might include undertakings to buy from certain approved suppliers only, to buy only above a certain level of quality, to engage constructively with suppliers (eg for product development purposes) or not to buy from suppliers who do not meet with their own ethical standards.
(F) Customers
How the company intends to treat its customers, typically in terms of policy of customer satisfaction, product mix, product quality, product information and complaints procedure.
********
1. To convey the ethical values of the company to interested audiences including employees, customers, communities and shareholders.
2. To control unethical practice within the organisation by placing limits on behaviour and prescribing behaviour in given situation.
3. To be a stimulant to improved ethical behaviour in the organisation by insisting on full compliance with the code.
************
Contents of a corporate code of ethics
The typical contents are as follows:
(A) Values of the company
This might include notes on the strategic purpose of the organisation and any underlying beliefs, values, assumptions or principles. Values may be expressed in terms of social environmental perspectives and expressions of intent regarding compliance with best practice, etc.
(B) Shareholders and suppliers of finance
In particular, how the company views the importance of sources of finances, how it intends to communicate with them and any indications of how they will be treated in terms of transparency, truthfulness and honesty.
(C) Employees
Policies towards employees, which might include equal opportunities policies, training and development, recruitment, retention and removal of staff.
(D) Community and wider society
The manner in which the company aims to relate to a range of stakeholders with whom it does not have a direct economic relationship (eg neighbours, opinion formers, pressure groups etc).
It might include undertakings on consultation, ‘listening’. Seeking consent, partnership arrangements (eg in community relationships with local schools) and similar.
(E) Supply chain/suppliers
This is becoming important as stakeholders scrutinise where and how companies source their products (eg farming practice, GM foods, fair trade issues etc).
Ethical policy on supply chain might include undertakings to buy from certain approved suppliers only, to buy only above a certain level of quality, to engage constructively with suppliers (eg for product development purposes) or not to buy from suppliers who do not meet with their own ethical standards.
(F) Customers
How the company intends to treat its customers, typically in terms of policy of customer satisfaction, product mix, product quality, product information and complaints procedure.
********
Thursday, August 11, 2011
Public Interest, Professionalism
Public Interest is the collective well-being of the community of people and institutions the professional accountant serves, including clients, lenders, governments, employers, employees, investors, the business and financial community and others who rely on the work of professional accountants. (IFAC)
Professionalism means avoiding actions that bring discredit on the accountancy profession.
Professional behavior imposes an obligation on professional accountants to comply with relevant laws and regulations.
Professionalism means to:
**Maintain confidentiality and upholding ethical standards.
**Should avoid making exaggerated claims for their own services, qualifications and experience.
**Dealing with professional colleagues - work well with other team members, deal appropriately with concerns they raise about the work they are doing. They set an example to junior staff.
*******
Professionalism means avoiding actions that bring discredit on the accountancy profession.
Professional behavior imposes an obligation on professional accountants to comply with relevant laws and regulations.
Professionalism means to:
**Maintain confidentiality and upholding ethical standards.
**Should avoid making exaggerated claims for their own services, qualifications and experience.
**Dealing with professional colleagues - work well with other team members, deal appropriately with concerns they raise about the work they are doing. They set an example to junior staff.
*******
Accountancy Profession - Green Ecologist?
Accounting Profession in the light of Gray, Owen & Adam’s deep green (or deep ecologist) position on social responsibility
{Green Ecologist is a concept of social responsibility – Human beings have no greater rights to resources or life than any other species and do not have the rights to subjugate social and environmental systems. Economic systems that trade off threats to the existence of species against economic objectives are immoral. Arguably business cannot be trusted to maintain something as important as the environment. Existing economic systems are beyond repair as they are based on the wrong values, privileging humans over nonhumans. A full recognition of all stakeholders would mean that business had to be conducted in a completely different way. This viewpoint is connected with the ideas of sustainability.}
(1) Economic Priority
If accountants serve the economic interests of clients, then their priorities are fundamentally flawed. The deep ecologist perspective argues that giving the economic objectives of capitalists any priority over social and environmental degradation is immoral.
(2) Environmental degradation
Environmental degradation links to the deep ecologist view that business must not threaten the habitats of other species or worsen the living conditions of humans affected by their activities.
(3) Animal rights
The emphasis on the need for accountants to address animal rights is an important distinction between the deep ecologist and other positions, as it places animal rights on an equal plane with humans.
(4) Poverty
The stress on making the relief of poverty and other social injustices a priority links in with the deep ecologist view that all humans, living and yet-to-be-born, are stakeholders in business. Businesses need to recognize the needs of all stakeholders rather than subjugating their requirements to the current economic interest of shareholders.
**********
{Green Ecologist is a concept of social responsibility – Human beings have no greater rights to resources or life than any other species and do not have the rights to subjugate social and environmental systems. Economic systems that trade off threats to the existence of species against economic objectives are immoral. Arguably business cannot be trusted to maintain something as important as the environment. Existing economic systems are beyond repair as they are based on the wrong values, privileging humans over nonhumans. A full recognition of all stakeholders would mean that business had to be conducted in a completely different way. This viewpoint is connected with the ideas of sustainability.}
(1) Economic Priority
If accountants serve the economic interests of clients, then their priorities are fundamentally flawed. The deep ecologist perspective argues that giving the economic objectives of capitalists any priority over social and environmental degradation is immoral.
(2) Environmental degradation
Environmental degradation links to the deep ecologist view that business must not threaten the habitats of other species or worsen the living conditions of humans affected by their activities.
(3) Animal rights
The emphasis on the need for accountants to address animal rights is an important distinction between the deep ecologist and other positions, as it places animal rights on an equal plane with humans.
(4) Poverty
The stress on making the relief of poverty and other social injustices a priority links in with the deep ecologist view that all humans, living and yet-to-be-born, are stakeholders in business. Businesses need to recognize the needs of all stakeholders rather than subjugating their requirements to the current economic interest of shareholders.
**********
Relativist vs Absolutist
Absolutist - DefinitionAbsolutist dogmatic assumptions are based on the idea that there are rules which should be followed in all circumstances, whatever the consequences.
This means that if an individual is facing an ethical dilemma, there should be a “right solution” to that dilemma.
Relativist - DefinitionRelativist position is there are a variety of ethical beliefs and practices. The Ethics that are most appropriate in a given situation will depend on the conditions at the time.
A pragmatic consequentialist position would be consider the consequences of the various options available, and choose the option that on balance produced the greatest benefits or the least degree of harm.
*********
This means that if an individual is facing an ethical dilemma, there should be a “right solution” to that dilemma.
Relativist - DefinitionRelativist position is there are a variety of ethical beliefs and practices. The Ethics that are most appropriate in a given situation will depend on the conditions at the time.
A pragmatic consequentialist position would be consider the consequences of the various options available, and choose the option that on balance produced the greatest benefits or the least degree of harm.
*********
5 Principles of IFAC Code
(a) Integrity - A professional accountant should be straight forward and honest in all professional and business relationships.
(b) Objectivity - A professional accountant should not allow bias, conflict of interest or undue influence of others to override professional or business judgements.
(c) Professional Competence and Due care- A professional accountant has a continuing duty to maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service based on current developments in practice, legislation and techniques. A professional accountant should act diligently and in accordance with applicable technical and professional standards when providing professional services.
(d) Confidentiality – A professional accountant should respect the confidentiality of information acquired as a result of professional and business relationships and should not disclose any such information to third parties without proper and specific authority unless there is a legal or professional right or duty to disclose. Confidential information acquired as a result of professional and business relationships should not be used for the personal advantage of the professional accountant or third parties.
(e) Professional Behaviour – A professional accountant should comply wth relevant laws and regulations and should avoid any action that discredit the profession.
(abbre: IOCCB)
********
(b) Objectivity - A professional accountant should not allow bias, conflict of interest or undue influence of others to override professional or business judgements.
(c) Professional Competence and Due care- A professional accountant has a continuing duty to maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service based on current developments in practice, legislation and techniques. A professional accountant should act diligently and in accordance with applicable technical and professional standards when providing professional services.
(d) Confidentiality – A professional accountant should respect the confidentiality of information acquired as a result of professional and business relationships and should not disclose any such information to third parties without proper and specific authority unless there is a legal or professional right or duty to disclose. Confidential information acquired as a result of professional and business relationships should not be used for the personal advantage of the professional accountant or third parties.
(e) Professional Behaviour – A professional accountant should comply wth relevant laws and regulations and should avoid any action that discredit the profession.
(abbre: IOCCB)
********
Subscribe to:
Posts (Atom)