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Professional Ethics in Accounting Guide

This document provides an overview of professional ethics in accounting and business. It discusses key concepts like fairness, transparency, objectivity, and integrity. It also examines different ethical principles such as absolutism, relativism, and pluralism. Additionally, it explores whether accounting is a profession or occupation and lists the characteristics of a profession. The document also outlines fundamental ethical principles for members and discusses the IFAC Code of Ethics. It concludes by describing ACCA's conflict resolution procedures.

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90 views16 pages

Professional Ethics in Accounting Guide

This document provides an overview of professional ethics in accounting and business. It discusses key concepts like fairness, transparency, objectivity, and integrity. It also examines different ethical principles such as absolutism, relativism, and pluralism. Additionally, it explores whether accounting is a profession or occupation and lists the characteristics of a profession. The document also outlines fundamental ethical principles for members and discusses the IFAC Code of Ethics. It concludes by describing ACCA's conflict resolution procedures.

Uploaded by

symhout
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

ACCA Paper F1 Accountant in business

REVISION Part F

Chapter 19

Study Text Chapter 19

Professional ethics in accounting and business

Key concepts (Governance)


Fairness : equal treatment Openness/transparency: no attempt to distort Objectivity : be independent Probity/honesty: not just about the telling truth Responsibility: to all stakeholders Accountability Reputation: develop moral statue Judgment: ability to reach meaningful conclusion Integrity: consistency and create trust

Ethical Principles
Ethical absolutism (dogmatic) one set of rights and wrong which never changes. Ethical relativism (pragmatic) context dependent and subjective. Pluralism The pluralist solution is to cater for the needs of more than one stakeholder group without seriously compromising the interests of any individual group

Deontology (non-consequential) based on the concept of duty, principles of obligation, irrespective of the consequences that will follow. Teleology (consequential) whether a decision is right or wrong depends on the consequences or outcome of that decision. The end result of the action is the sole determining factor of its morality. (ends justify the means) Egoism: 'what is best for me? Utilitarianism: 'what is best for the greatest number?

Profession or occupation? A profession refers to an occupation (the


principle activity that one does to earn a living) which involves has the following characteristics:
- Significant period of academic qualification. - Requirement to pass prescribed examinations. - Extensive theoretical knowledge and skills. - Technical training and practical experience. - Certificate or license to practice. - Membership to a professional body. - Code of professional conduct and ethics.

Fundamental ethical principles


Integrit Objectiv Compete Confidenti Professi ality nce onal ity y
Members should be straightf orward and honest in all professio nal / business relations hips Informati behavio Member Duty to ur on on manage s dont clients professio Member allow not nal s must bias or comply conflict knowled disclosed without ge and with of interest skills at appropria relevant appropri te specific laws and in avoid business ate level authority actions judgmen discredit ts ing the

IFAC Code of ethics

ACCAs conflict resolution procedures


Under the ACCAs Code of Ethics and Conduct, professional accountants should consider:
The relevant facts The ethical issues involved Related fundamental principles Established procedures of the firm The action that can be followed and the probably outcome The alternative courses of action and their consequences The internal and external sources of consultation (e.g. ethics partner; audit committee) available

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