Professional Ethics in Accounting

Questions and Answers

To promote trust, integrity, and fairness in financial reporting and business practices

Objectivity

Institute of Internal Auditors (IIA)

Earnings management Signup and view all the answers

To maintain public trust Signup and view all the answers

Increased credibility Signup and view all the answers

Reporting unethical or illegal activities within an organization Signup and view all the answers

Respecting the confidentiality of information acquired during professional work Signup and view all the answers

Study Notes

A set of principles and guidelines that accountants and accounting professionals are expected to follow in their daily work
Aim to promote trust, integrity, and fairness in financial reporting and business practices

Integrity: Be honest, transparent, and fair in all professional interactions
Objectivity: Maintain independence and impartiality in providing services and making judgments
Professional Competence and Due Care: Possess and maintain professional knowledge and skills, and exercise due care in the performance of professional services
Confidentiality: Respect the confidentiality of information acquired during the course of professional work
Professional Behavior: Avoid any conduct that could bring discredit to the profession

American Institute of Certified Public Accountants (AICPA): Develops and enforces the AICPA Code of Professional Conduct
Institute of Internal Auditors (IIA): Develops and enforces the IIA Code of Ethics
International Federation of Accountants (IFAC): Develops and enforces the IFAC Code of Ethics for Professional Accountants

Conflict of Interest: When personal interests conflict with professional obligations
Earnings Management: Manipulating financial reports to achieve desired results
Whistleblowing: Reporting unethical or illegal activities within an organization
Gifts and Bribes: Accepting or offering gifts or bribes that could influence professional judgment

Maintains Public Trust: Ensures that financial information is reliable and trustworthy
Enhances Credibility: Demonstrates a commitment to integrity and professionalism
Supports Good Governance: Promotes accountability and transparency in business practices

Set of principles and guidelines for accountants and accounting professionals to promote trust, integrity, and fairness in financial reporting and business practices

Integrity: Honesty, transparency, and fairness in all professional interactions
Objectivity: Independence and impartiality in providing services and making judgments
Professional Competence and Due Care: Possessing and maintaining professional knowledge and skills, and exercising due care in professional services
Confidentiality: Respecting confidentiality of information acquired during professional work
Professional Behavior: Avoiding conduct that could discredit the profession

American Institute of Certified Public Accountants (AICPA): Develops and enforces the AICPA Code of Professional Conduct
Institute of Internal Auditors (IIA): Develops and enforces the IIA Code of Ethics
International Federation of Accountants (IFAC): Develops and enforces the IFAC Code of Ethics for Professional Accountants

Conflict of Interest: Personal interests conflicting with professional obligations
Earnings Management: Manipulating financial reports to achieve desired results
Whistleblowing: Reporting unethical or illegal activities within an organization
Gifts and Bribes: Accepting or offering gifts or bribes that could influence professional judgment

Maintains Public Trust: Ensuring reliable and trustworthy financial information
Enhances Credibility: Demonstrating commitment to integrity and professionalism
Supports Good Governance: Promoting accountability and transparency in business practices