CIMA BA4 Syllabus A. BUSINESS ETHICS AND ETHICAL CONFLICT - Fundamental Principles - Notes ^{4 / 6}

Fundamental Principles

If a professional accountant is facing an ethical conflict with his employer, they should ensure that the resolution to this conflict is consistent with the fundamental principles provided in the CIMA Code of Ethics. 

There are 5 fundamental principles according to the CIMA Code of Ethics:

1. Integrity

   Integrity is a fundamental principle that implies fair dealing and truthfulness. 

   In order to demonstrate integrity, CIMA expects that a professional accountant should be straightforward and honest in all professional and business relationships.

2. Objectivity

   The objectivity principle requires the accountant to be intellectually honest and keep their mind free from bias. 
   To be objective, an accountant should act fairly, and not allow prejudice, bias or the influence of others to affect their judgements.

3. Professional competence and due care

   Professional competence is not accepting a role when you think that you are not suitably experienced to perform the role. 

   Professional competence and due care is maintained by carrying out Continuing Professional Development (CPD). 

   This ensures that the client or employer will receive competent professional service from the accountant.

4. Confidentiality

   Confidentiality means that a professional accountant should respect the confidentiality of information acquired as a result of a business relationship. 

   The accountant is bound to principle of confidentiality and must keep clients information confidential even after the business engagement has finished between the accountant and the client.

5. Professional behaviour

   Professional behaviour ensures that there is compliance with the relevant laws and regulations. 

   It ensures that behaviour does not bring the accountancy profession into disrepute.