ACCA SBL Syllabus A. Leadership - Professions and the Public Interest - Notes ^{1 / 4}

Profession

Has two essential and defining characteristics:

1. A body of theory

2. Knowledge which guides its practice and commitment to the public interest

Professionalism

Professionalism may be interpreted more as a state of mind while the profession provides the rules that members of that profession must follow.

Over time, the profession appears to be taking more of a proactive than a reactive approach. This means seeking out the public interest and positively contributing towards it

The Public Interest

Providing information that society as a whole should be aware of in many cases ‘public interest’ disclosure is used to establish that disclosure is needed although there is no law to confirm this action

A professional accountant

Society accords professional status to those that both possess a high level of technical knowledge in a given area of expertise (accounting, engineering, law, dentistry, medicine) on the understanding that the expertise is used in the public interest.

The body of knowledge is gained through passing examinations and gaining practical expertise over time. Acting in the public interest means that the professional always seeks to uphold the interests of society and the best interests of clients (subject to legal and ethical compliance).

Fundamental principles (responsibilities) as a professional

Society has reasonable expectations of all professionals. The major professional responsibilities of any professional are as follows:

1. Integrity

   The highest levels of probity in all personal and professional dealings. Professionals should be straightforward and honest in all relationships.

2. Objectivity

   Professionals should not allow bias, conflicts of interest or undue influence to cloud their judgements or professional decisions.

3. Professional competence and due care

   Professionals have a duty to ensure that their skills and competences are continually being updated and developed to enable them to serve clients and the public interest.

4. Confidentiality

   Professionals should, within normal legal constraints, respect the confidentiality of any information gained as a result of professional activity or entrusted to them by a client.

5. Professional behaviour

   Professionals should comply fully with all relevant laws and regulations whilst at the same time avoiding anything that might discredit the profession or bring it into disrepute.

Responsibilities to employer

• Acting with diligence, probity and care in all situations.

• Absolute discretion of all sensitive matters both during and after the period of employment.

• To act in shareholders’ interests as far as possible and that he or she will show loyalty within the bounds of legal and ethical good practice.

Responsibilities as a professional

• To observe the letter and spirit of the law in detail and of professional ethical codes where applicable

• If no codes, apply ‘principles-based’ ethical standards (such as integrity and probity) such that they would be happy to account for their behaviour if so required.

• To act in the public interest

• Accounting has a large potential impact on the public -  the working of capital markets – and hence the value of tax revenues, pensions and investment – rests upon accountants’ behaviour.

• The stability of business organisations – and hence the security of jobs and the supply of important products – also depends on the professional behaviour of accountants.