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ETHICS FOR PROFESSIONAL ACCONTANTS

Aisa Tri Agustini, SE., M.Sc., CPA
LEARNING OBJECTIVES
1. Explain the three general subject areas of ethics
2. Explain what ethics means to an accountant
3. State the purpose for a professional code of ethics
4. Give the three parts of the IESBA Code and what each part covers
5. Explain purpose and content of the IESBA Code of Ethics for Professional Accountant
6. Identify and discuss the fundamental principles of ethics as described bt the IESBA Code of Ethics
7. Discuss what threats to the fundamental principles are
8. List and define the four categories of threats to the fundamental principles
9. Define safeguards and give some examples
10. Recite the different areas of ethical concern listed as headings in the IESBA Code
11. Explain the concept of independence and identify the principles-based approach for resolving the attendant issues
12. Differentiate between independence of mind an independence in appearance
13. Describe non audit services prohibited by the Code of Ethics
14. Discuss the responsibilities of an accountant in public practice in dealing with ethical conflict that apply to his clients
and colleagues
15. State the topics of guidance that are particularly relevant to professional accountants working in industry, commerce,
the public sector or education
16. Summarise the possible disciplinary action for violation of ethics codes
moral principles, rules
of conduct, or value

human conduct, with respect to

the rightness and wrongness, the
goodness and badness of the
motives
 Code of Ethics

“A distinguishing mark o
accountancy profession
acceptance of the responsib
in the public interest. Ther
PART A professional
PART B accountant’s
PART C res
re
is not exclusively to satisfy th
an individual client or emp
 Fundamental Principles of
Ethics Code
Integrity

Objectivity
PART A
Professional Competence and
Due Care

Confidentiality

Professional Behaviour
Integrity
To be straightforward and honest in all
professional and business relationship

Objectivity

To not allow bias, conflict of interest undue

influence of others to override professional or
business judgement
Professional Competence
To maintain professional knowledge and skill at the level
required to ensure that a client or employer receives
competent professional services based on current
developments in practice, legislation, and techniques and act
diligently and in accordance with applicable technical and
professional standards.
Confidentiality

To respect the confidentiality on information acquired as a result of

professional and business relationship and therefore, 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, nor use the information for the personal advantage of the
professional accountant or third parties
Professional Behaviour
To comply with relevant laws and regulation and avoid any
action that discredits the profession
CODE OF ETHICS DEVIDING THE THREATS
INTO SOME CATEGORIES
The threat that a financial or other interest will
SELF-INTEREST THREAT inappropriately influence the professional accountant’s
judgement or behaviour

The threat that a professional accountant will not

appropriately evaluate the result of the provious
SELF-REVIEW THREAT judgement made or service performed by the professional
accountant

The threat that a professional accountant will promote a

client’s or employer’s position to the point that the
ADVOCACY THREAT professional accountant’s objectivity is compromised

The threat that due to a long or close relationship with a

client or employer, a professional accountant will be too
FAMILIARITY THREAT sympathetic to their interests or too accepting of their
work

The threat that a professional accountant will be deterred

from acting objectively because of actual or perceived
INTIMIDATION THREAT pressures, including attempts to exercise undue influence
over the prosessional accountant
SAFEGUARDS
SAFEGUARDS CREATED BY
THE PROFESSION,
LEGISLATION, OR REGULATION

SAFEGUARDS IN THE WORK OF

ENVIRONMENT
 Fundamental
PART B
Principles of
Ethics Code
Professional Marketing Professional
Services
Appointment
Conflict of Interest Gifts and Hospitality

Second Opinion Custody of Client Assets

Fees and Other Remuneration Objectivity and Independence

 Fundamental
PART C
Principles of
Ethics Code
CONFLICT OF INTEREST

PREPARATION AND REPORTING

INFORMATION

ACTING WITH SUFFICIENT EXPERTISE

FINANCIAL INTEREST, COMPENSATION

AND INCENTIVES LINKED TO FINANCIAL
REPORTING AND DECISION MAKING
“Education is the“Type
passport
a quote
to the
here.”
future, for tomorrow
belongs to those who prepare for it today”

–Johnny
–Malcolm
Appleseed
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