Topic

Ethics of professional

Accountant

Perspective of Bangladesh

Historical background

What is Ethics ?

Accounting ethics is primarily a field of applied ethics, the study of

moral values and judgments as they apply to accountancy. It is an

example of professional ethics.

Principals

Honesty

Fairness

Objectivity

Responsibility

Standards

Competency

Confidentiality

Integrity

Credibility

Characteristics of

professional accountant

Types of Ethics

General Ethics

Secularism

Communism

Capitalism

Islamism

Fascism on

Professional

Ethics • Ethics of an auditor

• Ethics of an accountant

• Ethics of a banker

Prominent code of conducts

Code of professional Conduct set by

International Federation of

Accountants (IFAC)

The Institute of Chartered

Accountants of Bangladesh (ICAB)

Code of Conduct

IFAC guidelines of ethics

Three parts A. Fundamental principal

and conceptual

framework

B. Professional accountant

in public practice

C. Professional accountant

in business

Fundamental Principles

PART A

• Integrity

• Objectivity

• Professional competence

• Confidentiality

• Professional behavior

Section 100.5

Conceptual framework

Different circumstances

Evaluation of threats

Factor measurements

Violation of provision

Threats

o Self interest threat

o Self review threat

oAdvocacy threat

o Familiarity threat

o Intimidation threat

Safeguards

Safeguard created by the profession,

legislation or regulation

• Educational, training and experience requirements

for entry into the profession

• Continuing professional development requirements

• Corporate governance regulations

• Professional standards

• Professional or regulatory monitoring and

disciplinary procedures

Safeguards in the work environment

PART B

Professional accountant in

public practice

Threats

• Self interest

• Self review

• Advocacy

• Familiarity

• Intimidation

Section 200.2

Safeguards • Safeguards created by

the profession,

legislation or

regulation

• Safeguards in the

work environment

Areas of attention

Professional appointment

Conflict of interest

Second opinion

Fees and remuneration

Marketing service

Hospitality and gifts

Custody of clients

Objectivity of service

ICAB Code of conducts

A A member engaged in management consultancy- • Shall not advertise for work, any circular or publicity

• Shall not issue brochures except to existing clients

• Shall not use designatory letters indicating qualifications of the

directors

• Shall not refer to associated firms of management consultants on their

letter heads

• Shall not adopt a name or associate himself as a partner or director of

a firm whose name is indicative of it’s activities

• Shall not use the designation “ Chartered Accountant(s)” for his

management consultancy firm

• Shall not share profits or remuneration on applied condition

• Shall not accept conventional accountancy work or auditing from any

client introduced to him for management consultancy service

• May write a personal letter to another member of the profession in

practice offering his firm’s service

• May only use the term “ Management Consultants” where he is

connected with an organization in management consultancy field as

owner, partner or director

• Shall abide by the rules of professional conduct of the institute and

ensure that the firm with which he is associated either as owner,

partner or director will follow those rules

• Shall be responsible from the standpoint of ethics for the conduct

• May associate with non-members for rendering of management

consultancy service until such member observe the bye-laws and

code of professional ethics

• Shall communicate as a matter of professional courtesy with the

existing professional accountant informing him of the special work

he has undertaken

• Shall not do under the guise of a company which he is not allowed

to do as an individual

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