BSA3104

1. Give at least five reasons why accounting profession has adopted a code of ethics.
The accounting profession adopted the code of ethics because of the following:
 The code of ethics may develop the character of an accountant. It is the core standards
that accounting professionals choose to comply with in order to enhance their profession,
preserve public trust, and demonstrate honesty and fairness.
 The code of ethics can be the safeguards of the accountants when there is an arising
threat.
 The code of ethics enlightens an individual on what principles they should do and follow.
 The code of ethics illustrates integrity, confidentiality, professional behavior, objectivity
and professional competence that should be learned by accountants.
 A professional accountant should observe the code of ethics in determining the scope and
nature of services to be provided.
2. Enumerate the parts of the Code of Ethics for Professional Accountants.
The parts of the Code of Ethics for Professional Accountants:
 Part 1 – Complying with the Code, Fundamental Principles and Conceptual Framework
- This involves compliance with the code, fundamental principles and
conceptual framework (process and procedures) to be complied by the
professional accountant.
 Part 2 – Professional Accountants in Business
- A professional accountant in business might be an employee, contractor,
partners director (executive and non-executive), owner manager, or volunteer
of an employing organization.
 Part 3 – Professional Accountants in Public Practice International Independence
Standards (Part 4A and 4B)
- This applies to all professional accountants in public practice, whether they
provide assurance services or not.
o Part 4A – Independence for Audit and Review Engagements
- This applies to professional accountants in public practice when performing
audit and review engagements.
o Part 4B – Independence for Assurance Engagements Other than Audit and
Review Engagements
- This applies to professional accountants in public practice when performing
assurance engagements other that audit and review engagements.

3. Briefly explain and give example on each fundamental principle.

There are five fundamental principles of ethics for professional accountants:
 Integrity – a professional accountant should be honest and straightforward a client’s
financial information. For example, when an accountant prepares a financial information,
it should restrict themselves to deceive and manipulate the information for the public
interest.
 Objectivity – a professional accountant must remain free from bias, conflict of interest
and undue influence of other when conducting a professional judgements and accounting
services. For example, individuals who handle general accounting functions and then
audit this information are essentially reviewing their own work. This situation may
allow an accountant to hide a company's negative financial information.
 Professional Competence and Due Care – the competence pertains to education and
experience that an accountant should acquire and eventually will result to utmost due
care. For example, an accountant continues to develop professional skills through
education, training, seminars and experience.
 Confidentiality – a professional accountant must respect the confidentiality and not
disclose any information professional and business related to the third parties without
proper authority. For example, an accountant receives message from the third parties
tells to disclose the information of the company. In this circumstance, accountant must
take control over the situation and strictly observe the policies.
 Professional Behavior – a professional accountant should comply with the relevant laws
and regulations and should avoid any action that discredits the profession. For example,
an accountant should not advertise and market themselves to the public or platform.
4. Make a diagram showing a process on how conceptual framework should be applied in
professional accountant in business

This conceptual framework is the process or procedures of eliminating the threats in

order for the professional accountant to comply with the code.