In: Accounting
Discuss & Differentiate Industry Code of Practice, Policies & Procedures
1) A code is a set of rules that serve as generally accepted guidelines recommended for the industry to follow. They exist for the purpose of confidentiality, safety, quality or other benefit. For example, electrical codes exist to ensure system reliability and that building occupants are safe from shock risks.On its own, a code is not a law that must be followed, but can be adopted into a law or included in a business contract. Each code specifies the minimum acceptable requirements for an electrical process or for the performance of the final system itself. Codes may incorporate or refer to existing standards or specifications.
2) Policies are formal statements which is produced and supported by higher management. They can be organization-wide, issue-specific or system specific.
3) Procedures are detailed step by step instructions to achieve a given goal or mandate. They are typically intended for internal departments and should adhere to strict change control processes. Procedures can be developed as you go. If this is the route your organization chooses to take it’s necessary to have comprehensive and consistent documentation of the procedures that you are developing.