The Code of Ethics for
Professional
Accountants
Introduction
• As professionals, the accountant’s responsibility
is not exclusively to protect the interest of their
clients or employers but the interest of the
public must always be their paramount concern.
• Professional accountants must adhere to
standards of ethical conduct: standards of
conduct that embody and demonstrate integrity,
objectivity, and competence that it has acquired
over its many years to maintain “public trust
and confidence”.
• PICPA is obliged and committed to support the
work of IFAC.
Part A – General Applications
1. INTEGRITY
Straightforward and honest in professional
and business relationships. The principle of
integrity requires the CPA to stand up for what he
believes is true.
2. OBJECTIVITY
Professional accountants must be fair,
intellectually honest and free of conflicts of interest.
CPA should maintain objectivity and avoid
subordination of their judgment when rendering
Part A – General Applications
3. AND DUE CARE
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.
Due care encompasses the responsibility to
perform professional services in accordance with
technical and professional standards, carefully,
thoroughly and on a timely basis.
Professional Competence:
• Attainment of professional competence
• Maintenance of Professional competence
Part A – General Applications
4. CONFIDENTIALITY
Professional accountant should respect the
confidentiality of information acquired during the
course of performing professional services and not
use or disclose information without proper and
specific authority or unless there is a legal or
professional right or duty to disclose.
Confidential information may be disclosed under the
following circumstances:
1. Disclosure is permitted by the client or
employer
2. Disclosure is required by law
3. There is a professional duty or right to
disclose confidential information
Part A – General Applications
5. PROFESSIONAL BEHAVIOR
Professional accountant should comply with
relevant laws and regulations and refrain from any
conduct which might bring discredit to the
profession.
Conceptual Framework Approach
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;
3. Apply safeguards, when necessary, to eliminate
the threats or reduce them to an acceptable level
Threats to Compliance with the
Fundamental Principles
1. SELF-INTEREST THREATS
threat that a financial or other interest will
inappropriately influence the professional
accountant’s judgment or behavior.
• Direct financial interest or material indirect
financial interest in client
• Having close relationship with a client
• Potential employment with a client
Threats to Compliance with the
Fundamental Principles
2. SELF-REVIEW THREATS
threat that a professional accountant will not
objectively evaluate the results of the previous
judgment made or service performed in forming a
conclusion about the subject matter
• A member of the engagement team being, or
having recently been, a director or officer of the
client
• Reporting on the operation of financial systems
after being involved in their design or
Threats to Compliance with the
Fundamental Principles
3. ADVOCACY THREATS
threat that a professional accountant will
promote a client’s or employers position to the
point that the professional accountant’s objectivity
is compromised
• Dealing in, or being a promoter of, share of
other securities in a client
• Acting as an advocate on behalf of client in
litigation or in resolving disputes with third
Threats to Compliance with the
Fundamental Principles
4. FAMILIARITY THREATS
threat that a professional accountant will … …
… …………………..
• A member of the engagement team having an
immediate family member or close family
member who is a director or officer of the client
• Acceptance of gifts or preferential treatment,
unless the value is clearly insignificant, from a
client, its directors, officers or employees
Threats to Compliance with the
Fundamental Principles
5. INTIMIDATION THREATS
threat that a professional accountant will be
deterred from acting objectively because of actual
or perceived pressures, including attempts to
exercise undue influence over the professional
accountant
• Being threatened with dismissal or replacement
over a disagreement with the application of an
accounting principle
• Being pressured to reduce inappropriately the
extent of work performed in order to reduce fees
