Question

Discuss the fundamental principles in the International Ethics Standards Board of Accountants’ (IESBA) Code of Ethics for Professional Accountants.

Answer 1

The fundamental principles as set in the International Ethics Standards Board of Accountants’ (IESBA) are:

(a) Integrity : The Accountants should be to be straightforward and honest in all professional and business relationships. They should not misuse the information provided by the owner of the business. Accountants functions should be strictly towards their recording, summarizing, finalizing and analyzing of records.

(b) Objectivity : The Accountants should not compromise his/her professional judgments and business ethics under any pressure or influence of any authority.

(c) Professional Competence and have Due Care : Each Accountant must possess the professional and technical knowledge and skill, also keep on updating the same. Should ensure recording of the accounts on the latest rules and regulations. The international standards should be followed in drawing the accounts.

(d) Confidentiality : The Accountants should protect the business secrets and respect the confidentiality of information provided by the owner of business while having business relation and maintenance of accounts.

(e) Professional Behavior : Each Accountant should ensure the complying with relevant laws and regulations of the land. The personal and professional ethics should not come under conflict with each other.

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