The Code of Ethics for a Certified Financial Accountant (CFA) Program
The Society of Accounting Education (SOAE) Pakistan
Members of SOAE shall behave ethically. A commitment to ethical professional practice includes
overarching principles that express our values and standards that guide our conduct. Accounting is a
professional industry that offers a variety of financial services to individuals and businesses. Two
types of accounting exist in the business environment: financial and management. Financial
accountant is often found in the public accounting industry, public accountant are responsible for
reviewing a company’s financial information to ensure it is accurate and valid. Management
Accountants work for a company recording and reporting financial information. Ethics is an important
element in both the financial and management accounting professions.
(I)
FACTS
Accountants have the unique responsibility of working for an employer / specific client while being
responsible to the general public regarding company’s financial information. While this situation seems
to create a conflict of interest, many accountants are bound to ethical and professional behavior based
on their professional certification like Certified Financial Accountant (CFA). There are various accounting
certifications, which an accountant can acquire to build and strengthen their career in accordance with
the International Standards.
(II)
TECHNICAL STANDARDS
Most of us do not understand the legal regulations of the Country regarding our finances and taxes, this
is why we hire a “Certified Financial Accountant (CFA)”. Certified Financial Accountants are responsible
for knowing what they are doing, or as CFA puts it they must “carry out professional services in
accordance with the relevant technical and professional standards”.
(III)
CONFIDENTIALITY
Each member has a responsibility to:
1. Keep information confidential except when disclosure is authorized or legally required.
2. Inform all relevant parties regarding appropriate use of confidential information. Monitor
subordinates’ activities to ensure compliance.
3. Refrain from using confidential information for unethical or illegal advantage.
4. The only exception is when they have a legal obligation to reveal certain confidential
information.
(IV)
OBJECTIVITY AND INDEPENDENCE
Objectivity and independence ensures that accountants do not conduct too many accounting services in
a single financial department. Ethical dilemmas arise when accountants provide general accounting
functions along with audit, tax or management advisory services. Accounting firms or individuals CFAs
who complete too many accounting services for one client can face objectivity and independence issues.
Failing to maintain an independent opinion may allow accountants to manipulate a company’s financial
information.
(V)
PROFESSIONAL BEHAVIOUR
CFA should behave in a professional manager in their dealings. Basically, they should maintain the good
reputation of the profession by “complying with relevant laws regulations”, while “avoiding any action
they may bring discredit to the profession”.
(VI)
INTEGRITY
It is necessary that CFA be honest and straightforward in their dealings. This goes back to objectivity; if
there is a conflict of interest or any reason that they can’t remain objective, they need to tell the client.
They need to follow the law, not to mention the unwritten rules of their profession.
Accountant must ask themselves the question “Am I doing what normal person of integrity would do?”
This question is often posed when accountants come across negative financial or business information
that can create difficult business situations for a Company.
(VII)
DUE CARE
Due care refers to the professional competence of accountants. This is a profession that is constantly
changing because laws and regulations are always changing. It is the responsibility of the CFA to be upto-date on the knowledge that affects their careers. They are responsible for reading, training and doing
anything necessary to “ensure that an employer or client receives the advantage of competent
professional service based on up-to-date developments in practice, legislation and techniques.”
(VIII)
EXPERT INSIGHT
The CFA established a code of professional conduct, defining principles and responsibilities while the
SOAE is a membership organization for licensed certified financial accountants, other accountants may
adhere to this code. The SOAE also offers an ethics course so accountants can stay abreast various
ethical situations or issues in the business environment.