Syllabus A. Fundamental Ethical And Professional Principles A1. Professional Behaviour & Compliance With Accounting Standards

A1a. Ethical & Professional Issues In Advising On Corporate Reporting 1 / 4

Syllabus A1a)

Appraise and discuss the importance of ethical and professional behaviour in complying with accounting standards and corporate reporting requirements.

When giving advice be aware of:

  1. Your own Professional Competence and that company directors must keep up to date with IFRS developments

  2. Your own Objectivity

Your own Professional Competence

The issues that may threaten this are:

  • Insufficient time

  • Incomplete, restricted or inadequate information

  • Insufficient experience, training or education

  • Inadequate resources

Your own Objectivity

The issues that may threaten this are:

  • Financial interests (profit-related bonuses /share options)

  • Inducements to encourage unethical behaviour

In fact ACCA’s Code of Ethics and Conduct identifies that accountants must not be associated with reports, returns, communications where they believe that the information:
  1. Contains a materially misleading statement

  2. Contains statements or information furnished recklessly

  3. Has been prepared with bias, or

  4. Omits or obscures information required to be included where such omission or obscurity would be misleading