IFAC CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS
In order to maintain public trust and
confidence in the accountancy profession,
professional accountants must adhere to
standards of ethical conduct standards of conduct
that embody and demonstrate integrity,
objectivity, and concern for the public rather than
self-interest. The Code of Ethics for Professional
Accountants in the Philippines is based on the
IFAC Code of Ethics for Professional
Accountants.
General Application
In acting in the public interest,
professional accountants have to
observe a number of prerequisites or
fundamental principles.
Integrity:
A professional accountant should be
straightforward and honest in
professional and business relationships.
Integrity implies not merely honesty but it
requires being brave enough to fight for
what you believe in, Not telling lies is
honesty, but a man of integrity will always
be willing to speak out and ask difficult
questions when the circumstances
warrant.
Objectivity:
The principle of objectivity imposes the
obligation on all professional
accountants to be fair, intellectually
honest and free of conflicts of interest. A
professional accountant should be fair
and should not allow prejudice or bias,
conflict of interest or influence of others
to override objectivity.
Professional Competence and due Care
A professional accountant should not
undertake any engagement or accept an
employment which he or she cannot
reasonably expect to discharge with
professional competence. A professional
accountant should continually strive to
improve his knowledge and skills to
ensure that a client or employer receives
the advantage of competent professional
service based on up-to-date
developments in practice, legislation and
techniques.
Confidentiality
A professional accountant should
respect the confidentiality of information
acquired during the course of performing
professional services and should not use
or disclose any such information without
proper and specific authority or unless
there is a legal or professional right or
duty to disclose.
Professional Behavior
A professional accountant should comply
with relevant laws and regulations and
refrain from any conduct which might
bring discredit to the profession.
Conceptual Framework Approach
It is impossible to define every situation that
creates threats to compliance with fundamental
principles. Consequently, the code establishes a
conceptual framework approach that requires a
professional accountant to:
1. Identify threats to compliance with
fundamental principles
2. Evaluate the significance of threats
identified; and
3. Apply safeguards, when necessary, to
eliminate the threats or reduce them to
an acceptable level.
This approach is aimed at assisting the
professional accountants in complying with
ethical requirements and meeting their
responsibility to act in the public interest.
Threats to Compliance with the Fundamental
Principles

The circumstances in which the professional

accountants operate may create threats to
compliance with fundamental principles. Such
threats fall into one or more of the following
categories:

1 Self-interest;
2. Self-review;
3. Advocacy;
4. Familiarity; and
5. Intimidation.

Safeguards

A professional accountant shall evaluate

any threats to compliance with the
fundamental principles. Both quantitative
and qualitative factors must be
considered in evaluating the significance
of a threat. Once a significant threat has
been identified and evaluated,
appropriate safeguards should be
considered and applied as necessary.

Safeguards fall into two broad categories:

1 Safeguards created by the profession,

legislation of regulation; and

2. Safeguards in the work environment

The firm and the members of the assurance team

should select appropriate safeguards to eliminate
or reduce threats, other than those that are
clearly insignificant, to an acceptable level.