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Chapter 14: Introduction of Ethics - Coggle Diagram
Chapter 14: Introduction of Ethics
Professional Ethics
Need for ethics
Responsibilities
Maintain reputation of act profession
Consider the public interest
Personal self-interest MUST NOT prevail over these duties
Acting in public interest involves having regard to the legitimate interest of fin comm relying on ojectivity and integrity of act professional in making decision
Key reason accountant to have ethic code - pp rely on them and their expertise
Accountant deal w/ range of issue on behalf of client: access confidential and sensitive info => independent view
Ethics protect accountant - cannot be accused of behaving differently form others
Source of ethical guidance
ICAEW mems n employees of the firms: ICAEW Code of Ethics and IESBA
UK auditors: FRC's Ethica Standard
Rules-/Principles-based distinctions
Rules-based: thường sẽ có hẳn các list để follow theo và áp dụng một cách cố định về từng trường hợp khác nhau chứ không thể thay đổi hoặc giải quyết cách khác
Principles-based: thường sẽ là những quy định chung chung cho tất cả các trường hợp, KTV sẽ linh hoạt và chủ động đưa ra xét đoán nghề nghiệp khi gặp phải những trường hợp như vậy.
Advantages of principles-based
Active consideration n demonstration of conclusion
Broad interpretation of ethical situations
Flexible to changing situation
Can incorporate prohibitions
IESBA Code of Ethics
Fundamental principles
Integrity: straightforward, honest (chính trực)
Objectivity: not bias, conflict of interest (khách quan)
Professional competence and due care
Obtain and maintain professional knowledge and skills at level required
Act diligently w/ applicable technical and professioanl standard
Confidentiality (tính bảo mật thông tin)
Professional behavior: comply w/ law and regulations
Independence
Step 1: Indentify threats to compliance w/ fundamental principles
Step 2: Evaluate threats
Address threat by eliminating/reducing them to acceptable levels, applying safeguard. If no safeguard is available => eliminate the interest/activity causing threat - decline the engagement
Independence of mind: độc lập trong suy nghĩ
Independence in appearance: độc lập trong các tình huống
=> Đảm bảo độ tin cậy
Threats
Self-interest: lquan ttiep đến lợi ích cá nhân
Self-review: tự làm tự kiểm tra
Advocancy: tự đảm bảo/bảo lãnh cho clients
Familarity: mqh lâu năm thân thiết
Intimidation: bị đe doạ từ client
ICAEW Code
P.A shall follow guidance in the fundamental principles in all of professional and act whether or not carried out w/ or w/out situation failed to do
Not only apply for job of P.A but also all life of P.A
Require to follow the spirit as well as letter of guidance - matter not include have to determine what spirit would apply instead of not thinking of it
FRC Ethical Standard:
Only UK auditor must comply w/ this
=> Not ICAEW mem: only FRC
=> ICAEW mem: both ICAEW Code and FRC if workin in UK