Chapter 1 - Principles Flashcards
Professional ethics
The moral principles or standards that govern the conduct of the members of an organisation.
Codes of professional ethics
Documents issued by the accounting bodies providing guidance to full and student members regarding professional ethics.
Integrity
Accountants should be straightforward and honest in performing professional ethics.
Honesty
Being truthful and trustworthy
Transparency
Operating in a way that is easy for others to see what is being done or said
Fairness
Acting reasonably and without bias
Continuing professional development
Members of professional accounting bodies are expected to keep their technical knowledge up-to-date through relevant study, training and by attending courses.
Objectivity
Decisions should be made based on true facts and accountants must not let their own bias or prejudice, or pressure from others affect decisions that they make
Conflict of interest
There arise where the business or personal interests of an accountant may influence the accountant giving an objective opinion.
Professional competence and due care
Accountants have a duty to ensure that they have the necessary skills to carry out any work that is assigned to them and that they always take sufficient care to ensure that the quality of their work meets the high standards expected of them.
Confidentiality
Information obtained during the course of professional work should not be disclosed without proper and specific authority or unless there is a legal duty to do so
Professional behaviour
Accountants should maintain the good reputation of the profession and should not do anything to discredit the profession
Probity
The quality of having strong moral principles of honesty and decency
What are the 5 ethical principles?
Integrity Confidentiality Objectivity Professional behaviour Professional competence and due care
What is the AAT Code of Ethics based on?
IESBA’s code of ethics
