The ACA is the badge of the highest ethical and professional standards. As a chartered accountant student, you are bound by ICAEW's code of ethics, which is based on the five fundamental principles below.
The Code helps our members meet these obligations by providing them with ethical guidance.
More information about the ICAEW Code of EthicsICAEW's code of ethics in place to 31 December 2010 replaced ICAEW's guide to professional ethics on 1 September 2006. A revised code of ethics applies from 1 January 2011. The substance of this code is the same as our previous Guide to Professional Ethics but the layout and structure of the new code is more user friendly.
The five fundamental principles
1) Integrity
A professional accountant should be straightforward and honest in all professional and business relationships.
2) Objectivity
A professional accountant should not allow bias, conflict of interest or undue influence of others to override professional or business judgments.
3) Professional competence and due care
A professional accountant has a continuing duty to maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional services based on current developments in practice, legislation and techniques. A professional accountant should act diligently and in accordance with applicable technical and professional standards.
4) Confidentiality
A professional accountant should respect the confidentiality of information acquired as a result of professional and business relationships and should not disclose any such information to third parties without proper and specific authority unless there is a legal or professional right or duty to disclose. Confidential information acquired as a result of professional and business relationships should not be used for the personal advantage of the professional accountant or third parties.
5) Professional behaviour
A professional accountant should comply with relevant laws and regulations and should avoid any action that discredits the profession.
ICAEW leading the way
ICAEW pioneered the principles based threats and safeguards approach to ethics (explained in an overview of the code of ethics). This approach has now been adopted by IFAC (the International Federation of Accountants, of which we are a member body) and the EC among others. We have also produced ground-breaking work on sustainability. For information on current developments in ethics, see icaew.com/ethics.
CPA Australia members have a responsibility to act in the public interest. You must comply with the fundamental principles of integrity, objectivity, professional competence, due care, confidentiality and professional behaviour in all your dealings.APESB is an independent body established in 2006 as an initiative of CPA Australia and Chartered Accountants in Australia and New Zealand (CA ANZ). CPA Australia, CA ANZ and the Institute of Public Accountants are all members of the APESB whose role is to develop and issue professional and ethical standards in the public interest that apply to all members and their members.
CPA Australia is here to support your commitment to the ethical codes and standards. We're part of a global community committed to achieving public good through the assisting our members with the provision of specialist accounting knowledge, that is reinforced by ethical codes and professional standards.
We recognise that ethical dilemmas sometimes arise in business and we are here to help you make a sound professional judgement.
Our specialist team welcomes any queries you have related to:
- professional and ethical dilemmas
- relevant codes and standards
- professional Standards Scheme
- professional indemnity insurance
- continuous professional development
- public practice certificate requirements
- tools and relevant resources.
Our team is available to assist you Monday to Friday. You can contact them and they'll respond as soon as possible.
A conversation with an independent, expert and impartial ethics trained professional can help. The Ethics Centre offers Ethi-call - an Australia-wide independent service, that is, free and confidential to help people through life's toughest challenges.
The five fundamental principles of ethics for professional accountants set out in Section A of our Code are:
- Integrity – to be straightforward and honest in all professional and business relationships.
- Objectivity – not to compromise professional or business judgments because of bias, conflict of interest or undue influence of others.
- Professional Competence and Due Care – to:
(i) Attain and maintain professional knowledge and skill at the level required to ensure that a client or employing organization receives competent professional service, based on current technical and professional standards and relevant legislation; and
(ii) Act diligently and in accordance with applicable technical and professional standards.
- Confidentiality – to respect the confidentiality of information acquired as a result of professional and business relationships.
- Professional Behavior – to comply with relevant laws and regulations and avoid any conduct that the professional accountant knows or should know might discredit the profession.
The fundamental ethical principles establish the standard of behaviour expected of a professional accountant. If you’re ‘up against the wall’, you might feel pressured into breaking one of these fundamental principles. That’s why it’s so important that you recognise any threats to our fundamental principles early on. Using the conceptual framework in Section A (Part 1) of the Code will help you to identify the situations that need to be managed. Find out more about the Conceptual Framework and ethical dilemmas here.