1 Accounting as a profession

Illustration 2

Objectivity

Referring again to the situation in Illustration 1, you should resist any

pressure to make the business’s performance look better than it is. You

should point out that it is your professional duty to apply accounting

concepts (such as consistency, accruals, prudence, etc.) to ensure that

you provide reliable information.

Accountants must not allow bias, conflict of interest or the undue

influence of others to override professional and business judgments.

Key terms

Illustration 3

Professional

Professional competence and due care competence and

due care: Keeping

One of your clients has asked your advice about a tax issue. It appears

knowledge and skills

that the legislation on this issue has recently changed but you are not

at the appropriate
familiar with the changes in legislation.

level in order to deliver

You should not provide any advice at this stage. You should identify

the ser vices to clients

someone in the firm who has the knowledge to answer the quer y.

diligently.

If time permits, you should seek to update your own knowledge in

Confidentiality:
this specialist field, perhaps asking permission to go on a training

avoiding the disclosure

programme or making use of online support.

of information to others

To exercise sound judgment an accountant must stay abreast with

without permission;

relevant laws, regulations and technical standards. Practising due care

not using a client’s

means when an accountant does not have expertise in an area they

information for personal

should consult with other professionals.

advantage. (The only

exceptions being where

Illustration 4

there are legal or ethical

Condentiality reasons to provide the

information.)
One of your clients, a local business, has recently been advertising for

new sta. A friend of yours has applied for one of the posts and has
Professional behaviour :

asked you if you think the business is financially stable.

taking personal

responsibility for
You should decline to comment on the financial stability of your

adopting the highest

client. You would point out that this information is confidential. You

standards of the
might suggest to your friend that they ask the question directly at

profession by complying
the inter view with the potential employer.

with legal requirements

An accountant must not disclose any financial information of a client

and regulations and

to third parties without proper and specific authority, unless there is a

avoiding any action

legal or professional right or duty to disclose. Also the accountant must

that would discredit the

not use the information for his or her personal advantage or for the

profession.

advantage of third parties.

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