Is ethics important for professional accountants?

May 22, 2018 | By admin4u | Filed in: Uncategorized.

The ethics of professional accounting is extremely important. Now that the business and financial world adopts international accounting and auditing standards, compliance with the Code of Conduct for International and National Accounting Bodies is becoming increasingly necessary. Before we argue for the subject, let's look at some basic concepts:


A profession is a profession that requires extensive training and requires the study and acquisition of special knowledge and is generally a professional federation, ethics, certification and licensing code and process ; Computer Science, Medicine, Social Work, Teaching, Law, Finance, Military, Care and Accounting, etc. Classically, there were only three professions: military, medical science and law. All these professions hold a specific code of ethics and members are almost universally obliged to swear an oath to observe these ethics and thus to "raise a higher level of accountability". All these professions provide extensive training and extensive training in the importance, value and significance of the oath of the profession in question


The practitioner of accounting is known as Accounting. Qualified accountant, accountant, accountant or accountant is a legally certified accountant and financial expert. Accountants are not only working in the public sector, but many are working within private companies, the financial sector and various government departments. The accounting (profession) or accounting (methodology) is to ensure the authentication, disclosure or securing of financial information that helps managers, investors, tax authorities, creditors and other stakeholders and decision-makers to allocate resource allocation and decision-making Making Decisions

In many other professions there are many professional organizations for accountants around the world. Some of them are legally recognized, for example British certified accountants, including the Chartered Certified Accountant (ACCA or FCCA), certified accountants (CA, ACA or FCA), Canadian Certified Accountants such as Chartered Accountant and Certified General Accountants (CA or CGA) and US Certified Accountants such as Certified Accountants (CPAs), etc. Some lawful and non-compulsory accounting qualifications: Certified Management Accountant (CMA), Associated Cost and Management Accountant (ACMA), Certified Financial Analyst (CFA) and Certified Fraud Examiner (CFE)

In Pakistan, the Pakistani Auditor's Office is the only professional and accounting body authorized to appoint the accountant in charge. ICAP is a member of IFAC (International Accounting Association, IASB, ASA) and member of the South Asian Accounting Association (SAFA). ICAP members reach 4.089 in March 1, 2007 data [19659002] The role of professional accountants:

Accountants are Independent Business Advisers Accountants Offer Broad Services Accountants can be registered auditors, create customer accounting systems, design or fraud and victim detectives, budget and financial statements, give advice to clients financing decisions, skills and the maintenance of a moral environment.

After discussing the underlying concepts and roles of professional accountants, we are looking at more about what professional ethics and why it is important in accounting.

Definition of Ethics

The word "ethics" comes from the ancient Greek word "ethics"; habits and customs. One of the most important branches of philosophy that is studying the value and habits of a person or group, and analyzing and applying concepts such as right and wrong, good and bad, as well as things to do and not.

Code of Ethics: 19659002] In the framework of a code adopted by a profession or by a government organization to regulate the profession, the Code of Ethics should be formulated as a code of professional responsibility that can reject the difficult questions of ethical behavior. The Code of Ethics is often a formal statement about the values ​​of the organization in certain ethical and social issues related to the profession and practice of professional knowledge. This includes the principles and procedures of specific ethical situations.

Ethics of Professional Accounting:

The general ethical norms of society relate to professions such as medicine, law, care and accounting, and so on. other. However, society has even greater expectations for professionals. People need trust in the quality of complex services provided by professionals

The ethics of accounting profession is invaluable for accounting professionals and those relying on their services. Stakeholders, including clients, lenders, governments, tax authorities, workers, investors, business and financial communities, etc. Highly competent, reliable, objective and neutral. Professional accountants should therefore not only have the skills, but also have a high level of professional integrity. Because of these great expectations, the experts have adopted ethical codes; also known as the Professional Code of Conduct. These ethical codes urge their members to maintain the level of self-discipline that goes beyond the requirements of laws and regulations. Each of the major professional associations of accountants has an ethical code.

As mentioned earlier, professional accountants can be in two ways. A company that works in companies or independently carries out accounting, auditing and other consulting services to clients; these are called public servants. Others are staff members of the organizations and can serve as internal auditors, executive accountants, financial managers and financial analysts. Regardless of the role of accountants, they apply ethical codes that apply to their professional conduct, although there are special provisions for public education participants.

International Federation of Accountants – IFAC:

The International Federation of Accountants (IFAC) is an association of all accounting bodies around the world. All relevant international and national organizations such as ACCA, AICPA, ICMA, ICAP, IASB, etc. Members of. The mission of IFAC in its constitution is to "develop and develop an accounting profession with harmonized standards that continuously provides high quality services for the public good" [Ref: Code of Ethics for Professional Accountants-IFAC]. During the implementation of the mission, the IFAC Board established the IFAC Ethics Committee to develop and issue high-quality ethical standards and other statements for professional accountants worldwide. The Code of Ethics sets ethical requirements for professional accountants. A member organization or undertaking may not apply more stringent requirements than those contained in this Code.

The purpose of the Code of Conduct is to harmonize these standards and practices from a global perspective. Publicity can only rely on these highly qualified professionals if it compels the observance and observance of the world's strict rules and rules. A professional accountant must comply with the following principles in the code of ethics: [Ref: Section 100.4 Code of Ethics for Professional Accountants]

· Integrity: A professional accountant must be fair and unambiguous in all professional and business relationships.

· Objective: A professional accountant should not allow the professional occupation of others or distortion of business, conflicts of interest or the unjustified influence of others.

· Professional Competence and Care: A professional accountant is constantly required to maintain professional knowledge and skills to ensure that the client or employer is provided with the appropriate professional service. A professional accountant must strictly comply with professional and professional standards when providing professional services.

· Confidentiality: A professional accountant must respect the confidentiality of the information obtained as a result of professional and business relationships and should not disclose such information. unless otherwise provided for by law and / or professional law or obligation.

· Professional Behavior: A professional accountant must comply with applicable laws and regulations and avoid any activity that hinders craftsmanship.

The "Members" Manual "for ICAP Pakistan Members:

· IFAC Code of Ethics and International Standards for Auditing

· International Accounting Standards

· Pakistan Issued Accounting Institute – ICAP

· Relevant Legislation For example, there are clear guidelines on the ban on the acceptance of gifts, long relationship with customers, advertising of a company beyond the specified limit, customer's money preservation, to disclose client records (except permissions), to accept less than the number of customers on the market.

After discussing the importance of ethics in the accounting profession, the subject is ended with the final remark that mvitel acceptable as a profession and can only rely on when they exercise professional judgment based on ethical grounds capability; A wide but profound technical excellence and strategic awareness is practiced by a professional accountant. Only then can the public trust this profession.

Source by Ghazala Saeed

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