Professional accountancy bodies issue codes of ethics

Question

Briefly describe why professional accountancy bodies issue codes of the ethics for their members.

Answer 1

The Code of Ethics for the Professional Accountants states and describe that ‘a distinguishing mark of accounting profession is its acceptance of accountability to act in public interest. Thus, a professional accountant’s accountability is not exclusively to satisfy the wants of the individual client or employer’ (IESBA, 2009, Para. 100.1). The major merits of IFAC Code of Ethics for Professional Accounts are:

• It offers explicit guidance to accountants and assists their understanding of expectations placed on them in terms of their ethical behavior.

• It allows clients know what they can anticipate from their professional accountants.

• It allows a standard for disciplining professional accountants who espouse poor accounting practices.

• It improves standing of professional accountants.

• It promotes commitment to best practice in profession.