You have been tasked with drafting a code of ethical conduct for your firm. What should you include?

Question

Quizplus · Accepted Answer

The Answer is a. The fundamental principles in a code of ethical conduct as defined by IFAC should incorporate rules of professional behavior in the following areas:
i) Integrity: A professional accountant should be straightforward and honest in performing professional services.
ii) Objectivity: A professional accountant should be fair and should not allow prejudice or bias, conflict of interest, or influence of others to override objectivity.
iii) Professional Competence and Due Care: A professional accountant should perform professional services with due care, competence, and diligence, and maintain professional knowledge and skill at a level required to ensure that a client receives competent, up-to-date, professional service.
iv) Confidentiality: A professional accountant should respect the confidentiality of information acquired during the course of an engagement and should not use or disclose any such information without proper and specific authority or unless there is a legal or professional right or duty to disclose.
v) Professional Behavior: A professional accountant should act in a manner consistent with the good reputation of the profession and refrain from conduct that might discredit the profession.
vi) Technical Standards: A professional accountant should provide professional services in accordance with the relevant technical and professional standards and should exercise due care and skill. The auditor should also comply with the instructions of the client insofar as they are compatible with the requirements of integrity, objectivity, and independence.
b. Communicating quality control problems to firm leadership:
A mechanism should be established and promoted which permits professional staff to communicate quality control problems including ethical problems which arise on engagements or in other matters to the firm leadership.

You Have Been Tasked with Drafting a Code of Ethical