3.2 Professional ethics/code of ethics for professional accountants

Professional ethics, also known as a code of ethics, provide a set of principles and guidelines that professional accountants are expected to follow. These ethics are established by various professional bodies and organizations, such as the International Federation of Accountants (IFAC) and national professional accounting bodies. While specific codes of ethics may vary across jurisdictions and organizations, they generally include the following fundamental principles:

1. Integrity: Professional accountants should be straightforward, honest, and truthful in all professional and business relationships. They should act with integrity to maintain public trust and confidence in the accounting profession.
2. Objectivity: Professional accountants should maintain objectivity and avoid conflicts of interest in their professional activities. They should not allow bias, undue influence, or personal interests to compromise their professional judgment and decision-making.
3. Professional Competence and Due Care: Professional accountants have a responsibility to perform their professional duties with competence, knowledge, and skills expected of a professional accountant. They should continually develop and update their expertise to ensure the provision of high-quality services.
4. Confidentiality: Professional accountants should respect the confidentiality of information acquired during the course of their professional work. They should not disclose such information to others unless there is a legal or professional duty to do so.
5. Professional Behavior: Professional accountants are expected to comply with relevant laws, regulations, and professional standards. They should act in a manner that upholds the reputation and image of the accounting profession. Professional behavior also encompasses treating others with respect and avoiding any conduct that may bring discredit to the profession.
6. Professional Skepticism: Professional accountants should exercise professional skepticism, maintaining an attitude of questioning and critical assessment. They should critically evaluate audit evidence and be alert to any signs of potential misstatement or irregularities.