The professional accountant is exposed to demands caused by globalization, the fundamental role he/she plays in corporate houses and its role in preparing financial - accounting information (Jaijairam, 2017). Therefore, the professional accountants should exercise their professional activity according to the rules of conduct laid down by the Code of Ethics for Professional Accountants, and according to national and international professional regulations.
According to the National Code of Ethics for Professional Accountants (2009), the fundamental ethical principles respected and applied by professional accountants, and financial manager are:
The principle of integrity: The principle of integrity imposes an obligation on all professional accountants to be straightforward and honest in professional and business relationships. Integrity also implies fair dealing and truthfulness.
The principle of objectivity: The principle of objectivity imposes an obligation on all professional accountants not to compromise their professional or business judgment because of bias, conflict of interest or the undue influence of others.
The principle of confidentiality: A professional accountant should not disclose or use, for themselves, confidential information obtained from the exercise of its duties. A professional accountant should maintain confidentiality even in a social environment. The professional accountant should be alert to the possibility of inadvertent disclosure, particularly in circumstances involving long association with a business associate (Copeland, 2015).
The principle of professionalism: Requires professional accountant’s compliance with laws and regulations in force and avoidance of any action that may discredit the profession (Louwers, 2007). The principle of professionalism imposes an obligation on professional accountants to comply with relevant laws and regulations and avoid any action that may bring discredit to the profession.
The principle of professional competence: Imposes a number of obligations of professional accountants such as: maintaining skills and professional knowledge to an acceptable level so that corporate governance to benefit of adequate professional services, and the exertion of professional services in concordance with the technical and professional standards.
The principle of respect for professional norms and standards: Professional accountants are required to comply with professional, quality and education standards, this representing a guarantee for the protection of public interest.
By applying the fundamental principles of integrity, objectivity, professional competence, confidentiality and professional behavior, professional accountants directly contribute to establishing a climate of confidence and normalcy to draining the economy, but also to improve the relationship between the entity’s board and the external environment (customers, credit institutions, investors, suppliers and so on).
References
ACCOUNTANT, N. C. (2009). Code of Ethics for Professional Accountants. The 5th Edition, revised and supplemented according to the International Code of Ethics for Professional Accountants issued by IFAC , 7-51.
Copeland, M. K. (2015). The importance of ethics and ethical leadership in the accounting profession. Bingley: Emerald Group Publishing Limited , 61-67.
Jaijairam, P. (2017). Ethics in Accounting. Journal of Finance and Accountancy.
Louwers, T. J. (2007). Auditing and assurance services. USA: New York, NY: McGraw-Hill Press.
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The professional accountant is exposed to demands caused by globalization, the fundamental role he/she plays in corporate houses and its role in preparing financial - accounting information (Jaijairam, 2017). Therefore, the professional accountants should exercise their professional activity according to the rules of conduct laid down by the Code of Ethics for Professional Accountants, and according to national and international professional regulations.
According to the National Code of Ethics for Professional Accountants (2009), the fundamental ethical principles respected and applied by professional accountants, and financial manager are:
The principle of integrity: The principle of integrity imposes an obligation on all professional accountants to be straightforward and honest in professional and business relationships. Integrity also implies fair dealing and truthfulness.
The principle of objectivity: The principle of objectivity imposes an obligation on all professional accountants not to compromise their professional or business judgment because of bias, conflict of interest or the undue influence of others.
The principle of confidentiality: A professional accountant should not disclose or use, for themselves, confidential information obtained from the exercise of its duties. A professional accountant should maintain confidentiality even in a social environment. The professional accountant should be alert to the possibility of inadvertent disclosure, particularly in circumstances involving long association with a business associate (Copeland, 2015).
The principle of professionalism: Requires professional accountant’s compliance with laws and regulations in force and avoidance of any action that may discredit the profession (Louwers, 2007). The principle of professionalism imposes an obligation on professional accountants to comply with relevant laws and regulations and avoid any action that may bring discredit to the profession.
The principle of professional competence: Imposes a number of obligations of professional accountants such as: maintaining skills and professional knowledge to an acceptable level so that corporate governance to benefit of adequate professional services, and the exertion of professional services in concordance with the technical and professional standards.
The principle of respect for professional norms and standards: Professional accountants are required to comply with professional, quality and education standards, this representing a guarantee for the protection of public interest.
By applying the fundamental principles of integrity, objectivity, professional competence, confidentiality and professional behavior, professional accountants directly contribute to establishing a climate of confidence and normalcy to draining the economy, but also to improve the relationship between the entity’s board and the external environment (customers, credit institutions, investors, suppliers and so on).
References
ACCOUNTANT, N. C. (2009). Code of Ethics for Professional Accountants. The 5th Edition, revised and supplemented according to the International Code of Ethics for Professional Accountants issued by IFAC , 7-51.
Copeland, M. K. (2015). The importance of ethics and ethical leadership in the accounting profession. Bingley: Emerald Group Publishing Limited , 61-67.
Jaijairam, P. (2017). Ethics in Accounting. Journal of Finance and Accountancy.
Louwers, T. J. (2007). Auditing and assurance services. USA: New York, NY: McGraw-Hill Press.