Question

Q2a) State and explain three (3) principles of ethical responsibilities in the accountancy working environment.​​

Answer 1

1. The principle of Objectivity

This principle requires accounting and finance professionals to stick to there professional and financial judgments. They should not allow bias , conflicting interest or undue influence of others to override there business judgments . They should communicate information fairly and objectively in such a way that the communication with the end user is complete and transparent.

2. The principle of confidentiality

This principle requires practitioners of accounts and financial to refrain from disclosing confidential information related to their work. Such information may be however may be disclosed to their subordinates and care should be taken that the latter maintains confidentiality. The only exception to this principle is when there are requirements to disclose the information under legal obligation or because of some statutory ruling.

3. The principle of professional behavior

This principle requires accounting and financial professionals to comply with relevant laws and regulations and avoid such actions which may result into discrediting the professionals

4. The principle of Integrity

The dictionary meaning of integrity is veracity. Accordingly the principle calls upon the accounting and financial professionals to adhere to honest to straight forwardness while discharging their respective professional duties.

5. The principle of professional competence and due care

Financial and accounting professionals have to need to update to their professional skills from time to time. This was assumed a greater significance in the modern day competitive environment where updated knowledge and skills ensure that the client or employer may receive competent professional services based upon current and contemporary developments in the related areas