2- 2014 code of ethics & key principles_no background.ppt

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    CODE OF ETHICS

    & Key Principles

    ROS LIND EV NGELIST

    Resource Person

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    ETHICAL REQUIREMENTS

    To provide

    guidance on the

    fundamentalprinciples

    which defineprofessional

    ethics

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    11.11.2014 3

    Code of Ethics for Professional Accountants

    This Code of Ethics for Professional Accountants (IESBA Code) establishes ethicalrequirements for professional accountants.

    A member body of IFAC or firm shall not apply less stringent standards

    than those stated

    in this Code.

    However, if a member body or firm is prohibited from complying with certain parts of

    this Code by law or regulation, they shall comply with all other parts of this Code.

    Some jurisdictions may have requirements and guidance that differ from those

    contained in this Code.

    Professional accountants in those jurisdictions need to be aware of those differences

    and comply with the more stringent requirements and guidance unless prohibited by

    law or regulation.

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    11.11.2014 4

    Code of Ethics for Professional Accountants:

    Introduction

    A distinguishing mark of the accountancy profession is its acceptance of theresponsibility to act in the public interest.

    Therefore, a professional accountant's responsibility is not exclusively t

    o satisfy the

    needs of an individual client or employer.

    In acting in the public interest, a professional accountant shall observe and comply

    with this Code of Ethics.

    This Code contains three parts:

    Part A establishes the fundamental principles of professional ethics for

    professional accountants and provides a conceptual framework for

    professional accountants.

    Parts B and Cdescribe how the conceptual framework applies in certain

    situations. They provide examples of safeguards that may be appropriate to

    address threats to compliance with the fundamental principles. Part Bapplies

    to professional accountants in public practice. Part C applies to professional

    accountants in business.

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    6

    OBJECTIVITY

    CONFIDENTIALITY

    PROFESSIONALCOMPETENCE

    AND DUE CARE

    INTEGRITY

    PROFESSIONAL

    BEHAVIOR

    Code of Ethics for Professional Accountants:

    Introduction

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    Glencoe Accounting

    The Nature of Ethics

    A formal policy of rules and

    guidelines that describes the

    standards of conduct that acompany expects from all its

    accountants.

    Code of Ethics

    forAccountants

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    Ethics

    Training and

    Outreach

    Distribution of a

    written code

    Formal training

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    Ethics

    Enforcement

    Performance

    Appraisal Notes

    Probation

    SuspensionDemotion

    Termination

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    Ethics

    The Accountants Role

    Avoid harm to stockholders.

    Optimize the interests of the public.

    Adhere to universal standards of what is right.

    Respect the human rights of all people.

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    Ethical Behavior

    Individuals

    Businesses

    Society

    Acting ethically can increase self-esteem, contentment, and

    self-respect.

    Companies that made commitments to an ethics code

    provided twice the value to shareholders than those that

    did not.

    Society is the sum of all social relationships between humans

    and is only as ethical as the individuals and business that

    make it up.

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    Key Terms

    integrity

    objectivity

    independence

    competence

    confidentiality

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    Key Principles

    Key

    Principles

    Integrity

    Objectivity

    IndependenceCompetence

    Confidentiality

    integrity

    The principle that

    requires accountants to

    choose what is right and just

    over what is wrong.

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    Key PrinciplesEthics in the

    Accounting Profession

    Section 29.2

    Key

    Principles

    Integrity

    Objectivity

    IndependenceCompetence

    Confidentiality

    objectivityThe principle that

    requires accountants to

    be impartial, honest, and free

    of conflicts of interest.

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    Key Principles

    Key

    Principles

    Integrity

    Objectivity

    IndependenceCompetence

    Confidentiality

    independence

    The principle that

    requires accountants to have

    no financial interest in the

    company being audited.

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    Key Principles

    Key

    Principles

    Integrity

    Objectivity

    IndependenceCompetence

    Confidentiality

    competence

    The principle that requires

    accountants to have the

    knowledge, skills, and

    experience needed to

    complete a task.

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    Key Principles

    Key

    Principles

    Integrity

    Objectivity

    IndependenceCompetence

    Confidentiality

    confidentiality

    The principle that requires

    accountants to protect and

    not disclose information

    acquired in the course of

    work unless they have the

    appropriate legal or

    professional responsibility to

    do so.

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    Codes of Ethics

    Philippine Institute

    of Certified PublicAccountants

    Board of

    Accountancy

    Professional

    Regulation

    Commission

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