Professional ethics
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Provide rules on how a person should act
Not to take advantage of good conduct and solution to a co-ordination problem
Increase confidence of end-users of information by reducing the level of risk
Pursue common ideal to minimize personal cost and present care about public
To be sufficiently competent and diligent to complete their assignment satisfactory
Supervise the behavior of a person or business environment
Benefits
1. Build confidence in the profession’s trustworthiness in public
2. Provide greater transparency and certainty about how their affairs will be handled
to clients
3. Provide a supporting framework and make for acceptable decisions
4. Provide a common understanding of acceptable practice building collegiality and
allowing for fairer disciplinary procedures
5. Deal with the profession which will be seen as more reliable and easier to deal
with.
Ethical principles (across all professions)
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honesty
trustworthiness
loyalty
respect for others
adherence to the law
doing good and avoiding harm to others
accountability
Code of ethics
1. Conceptual framework
 Code of ethics establishes a conceptual framework that requires a professional
accountant to identify, evaluate, and address threats to compliance with the
fundamental principles. The conceptual framework approach assists
professional accountants in complying with the ethical requirements of this
code and meeting their responsibility to act in the public interest.
2. General overview of acceptable and expected conduct

Code of ethics states the principles and expectations governing the conduct of
individuals and organizations.
3. Acceptable behavior of a member
 Code of ethics sets out specific behavior standards for members. This section
usually covers potential ethical issues such as confidentiality, partisanship, or
misuse of information. In addition to addressing theoretical ethical minefields,
a code of ethics often contains a section which outlines the procedures for
handling grievances, both outside and inside the organization.
4. Fundamental principle
 Code of ethics is made up of five fundamental principles. A professional
accountant shall comply with these principles. Each of these fundamental
principles is discussed in more detail in following part.
5. Subscribed to and required of person within certain groups of professions
 Code of ethics is a set of guidelines which are designed to set out acceptable
behaviors for members of a particular group, association, or profession.
Therefore, a professional accountant’s responsibility is not exclusively to
satisfy the needs of an individual client or employer. In acting in the public
interest, a professional accountant shall observe and comply with this Code.
6. Increase confidence of organization
 Code of ethics can also increase confidence in an organization by showing
outsiders that members of the organization are committed to following basic
ethical guidelines in the course of doing their work.
Fundamental Principles
The Code establishes a conceptual framework for all members to ensure compliance
with the five fundamental principles of ethics:
1.
Integrity
 To be straightforward and honest in all professional and business
relationships. You should not be associated with any information that you
believe contains a materially false or misleading statement, or which is
misleading by omission.
2.
Objectivity
 To not allow bias, conflict of interest or undue influence of others to
override professional or business judgments.
3.
Professional competence and due care
 An ongoing commitment to your level of professional knowledge and skill.
Base this on current developments in practice, legislation and techniques.
Those working under your authority must also have the appropriate training
and supervision.
4.
Confidentiality
 Not disclose professional information unless you have specific permission
or a legal or professional duty to do so.
5.
Professional Behavior
 To comply with relevant laws and regulations. You must also avoid any
action that could negatively affect the reputation of the profession.