Let's Analyze

1. Explain the fundamental principles and how these affect the professional accountants.

There are five fundamental principles of ethics for professional accountants: Integrity, in all
professional and business relationships it is need to be simple and honest. Objectivity, it is entails not to
allow biases, conflicts of interest or improper influence from others to affect professional decisions.
Professional Competence and Due Care are need, to achieve and refrain professional expertise and
ability. Confidentiality are used by maintaining the privacy of information. Professional Behavior
adhering to all applicable laws and regulations. The philosophical structure lays out the path that an
accountant would take in order to comply with those basic principles.

2. Explain the threats that affect the compliance of fundamental principles for accountants.

There are five threats that affect the compliance of fundamental principles that might be created by
a broad range of facts and circumstances. Those threats are the: self-interest threats, is the threat that a
licensed accountant's decision or actions may be influence improperly by a financial or other interest.
Self-review threat, are just like you are in a situation that you can review all you made in the past
transaction. Advocacy threat, the threat that a qualified accountant would support a client's or
employee's interest to the point of sacrificing the account's objectivity. Familiarity threat, the threat of
having a long or close relationship with a client or employee of an organization to a professional
accountant will be too compassionate on their interests and will be accepting as well of their work.
Intimidation threat, is a threat that your capacity to perform is being threat or intimidated by others.
And those are the threats that affect the compliance of fundamental principles to the professional
accountants.

3. Why is it important for professional accountants to adopt a code of ethics?

Because Code of Ethics are the basic principles that professionals in accounting used to follow and
enchance their knowledge and profession in accounting. It will maintain their public trust as well as
showing their honesty to the public. People who join these organizations will secure their credentials
and present themselves to the public as CPA's that strive and protect the reputation of their profession.