Download - Ethics of professional accounting
Topic
Ethics of professional
Accountant
Perspective of Bangladesh
Historical background
What is Ethics ?
Accounting ethics is primarily a field of applied ethics, the study of
moral values and judgments as they apply to accountancy. It is an
example of professional ethics.
Principals
Honesty
Fairness
Objectivity
Responsibility
Standards
Competency
Confidentiality
Integrity
Credibility
Characteristics of
professional accountant
Types of Ethics
General Ethics
Secularism
Communism
Capitalism
Islamism
Fascism on
Professional
Ethics • Ethics of an auditor
• Ethics of an accountant
• Ethics of a banker
Prominent code of conducts
Code of professional Conduct set by
International Federation of
Accountants (IFAC)
The Institute of Chartered
Accountants of Bangladesh (ICAB)
Code of Conduct
IFAC guidelines of ethics
Three parts A. Fundamental principal
and conceptual
framework
B. Professional accountant
in public practice
C. Professional accountant
in business
Fundamental Principles
PART A
• Integrity
• Objectivity
• Professional competence
• Confidentiality
• Professional behavior
Section 100.5
Conceptual framework
Different circumstances
Evaluation of threats
Factor measurements
Violation of provision
Threats
o Self interest threat
o Self review threat
oAdvocacy threat
o Familiarity threat
o Intimidation threat
Safeguards
Safeguard created by the profession,
legislation or regulation
• Educational, training and experience requirements
for entry into the profession
• Continuing professional development requirements
• Corporate governance regulations
• Professional standards
• Professional or regulatory monitoring and
disciplinary procedures
Safeguards in the work environment
PART B
Professional accountant in
public practice
Threats
• Self interest
• Self review
• Advocacy
• Familiarity
• Intimidation
Section 200.2
Safeguards • Safeguards created by
the profession,
legislation or
regulation
• Safeguards in the
work environment
Areas of attention
Professional appointment
Conflict of interest
Second opinion
Fees and remuneration
Marketing service
Hospitality and gifts
Custody of clients
Objectivity of service
ICAB Code of conducts
A A member engaged in management consultancy- • Shall not advertise for work, any circular or publicity
• Shall not issue brochures except to existing clients
• Shall not use designatory letters indicating qualifications of the
directors
• Shall not refer to associated firms of management consultants on their
letter heads
• Shall not adopt a name or associate himself as a partner or director of
a firm whose name is indicative of it’s activities
• Shall not use the designation “ Chartered Accountant(s)” for his
management consultancy firm
• Shall not share profits or remuneration on applied condition
• Shall not accept conventional accountancy work or auditing from any
client introduced to him for management consultancy service
• May write a personal letter to another member of the profession in
practice offering his firm’s service
• May only use the term “ Management Consultants” where he is
connected with an organization in management consultancy field as
owner, partner or director
• Shall abide by the rules of professional conduct of the institute and
ensure that the firm with which he is associated either as owner,
partner or director will follow those rules
• Shall be responsible from the standpoint of ethics for the conduct
• May associate with non-members for rendering of management
consultancy service until such member observe the bye-laws and
code of professional ethics
• Shall communicate as a matter of professional courtesy with the
existing professional accountant informing him of the special work
he has undertaken
• Shall not do under the guise of a company which he is not allowed
to do as an individual
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