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    Chapter 14 - Codes of Professional Ethics

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    Tazimul Alam Chowdhury
    Accountants require codes of ethics because they hold positions of trust and people rely on them. Accountants in Bangladesh are subject to the code of ethics from the Institute of Chartered Accountants of Bangladesh (ICAB), which is influenced by the International Federation of Accountants. The ICAB code focuses on principles like integrity, objectivity, competence, confidentiality, professional behavior, and independence. It addresses threats to independence like self-interest, self-review, advocacy, familiarity, and intimidation. The code provides for safeguards like additional reviews, consultation with independent parties, and rotating personnel.

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    Chapter 14 - Codes of Professional Ethics

    Uploaded by

    Tazimul Alam Chowdhury
    76 views10 pages
    Accountants require codes of ethics because they hold positions of trust and people rely on them. Accountants in Bangladesh are subject to the code of ethics from the Institute of Chartered Accountants of Bangladesh (ICAB), which is influenced by the International Federation of Accountants. The ICAB code focuses on principles like integrity, objectivity, competence, confidentiality, professional behavior, and independence. It addresses threats to independence like self-interest, self-review, advocacy, familiarity, and intimidation. The code provides for safeguards like additional reviews, consultation with independent parties, and rotating personnel.

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    Chapter 14 - Codes of professional ethics

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    Accountants require codes of ethics because they hold positions of trust and people rely on them. Accountants in Bangladesh are subject to the code of ethics from the Institute of Chartered Accountants of Bangladesh (ICAB), which is influenced by the International Federation of Accountants. The ICAB code focuses on principles like integrity, objectivity, competence, confidentiality, professional behavior, and independence. It addresses threats to independence like self-interest, self-review, advocacy, familiarity, and intimidation. The code provides for safeguards like additional reviews, consultation with independent parties, and rotating personnel.

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    © All Rights Reserved
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    Download as pdf or txt
    76 views10 pages

    Chapter 14 - Codes of Professional Ethics

    Uploaded by

    Tazimul Alam Chowdhury
    Accountants require codes of ethics because they hold positions of trust and people rely on them. Accountants in Bangladesh are subject to the code of ethics from the Institute of Chartered Accountants of Bangladesh (ICAB), which is influenced by the International Federation of Accountants. The ICAB code focuses on principles like integrity, objectivity, competence, confidentiality, professional behavior, and independence. It addresses threats to independence like self-interest, self-review, advocacy, familiarity, and intimidation. The code provides for safeguards like additional reviews, consultation with independent parties, and rotating personnel.

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    Chapter14
    Codes of professional ethics

    Bhola Nath Kundu ACA


    Deputy Director (Head of Quality Assurance)
    Audit & Advisory
    ACNABIN Chartered Accountants
    [email protected]
    Cell # +8801714214990
    Chapter 14: Codes
    . of professional ethics
    Need for ethics

    • Accountants require an ethical code because they hold positions of trust, and people rely on them.
    • Accountants work in the public interest, which extends beyond clients to people associated with those clients and the
    general community.

    Sources of ethical guidance

    • ICAB members (and trainees) and employees of member firms are subject to the ICAB Code of Ethics.
    • This is influenced by the guidance of IFAC (the International Federation of Accountants, of which ICAB is a member)

    Bhola Nath Kundu ACA II Deputy Director II ACNABIN Chartered Accountants II [email protected] II Cell # +8801714214990
    Chapter 14: Codes
    . of professional ethics
    Rules or principles-based guidance

    Active consideration and demonstration of conclusions

    Broad interpretation of ethical situations

    Individual situations covered

    Flexible to changing situation

    Can incorporate prohibitions

    Bhola Nath Kundu ACA II Deputy Director II ACNABIN Chartered Accountants II [email protected] II Cell # +8801714214990
    Chapter 14: Codes
    . of professional ethics
    Fundamental principles

    Integrity

    Objectivity

    Professional competence and due care

    Confidentiality.

    Professional behaviour

    Bhola Nath Kundu ACA II Deputy Director II ACNABIN Chartered Accountants II [email protected] II Cell # +8801714214990
    Chapter 14: Codes
    . of professional ethics
    Independence

    Identify threats to independence

    Evaluate whether the threats are insignificant

    Professional competence and due care

    If the threats are not insignificant, identify and apply safeguards to eliminate risk, or reduce it to an acceptable level.

    Where no safeguard is available


    • Eliminate the interest or activities causing the threat
    • Decline the engagement, or discontinue it

    Bhola Nath Kundu ACA II Deputy Director II ACNABIN Chartered Accountants II [email protected] II Cell # +8801714214990
    Chapter 14: Codes
    . of professional ethics
    Independence of mind

    The state of mind that permits the expression of a conclusion without being affected by influences that compromise
    professional judgments, allowing an individual to act with integrity, and exercise objectivity and professional scepticism.

    Independence in appearance

    The avoidance of facts and circumstances that are so significant that a reasonable and informed third party, having
    knowledge of all relevant information, including safeguards applied, would reasonably conclude a firm's, or a member of the
    assurance team's, integrity, objectivity or professional scepticism had been compromised.

    Bhola Nath Kundu ACA II Deputy Director II ACNABIN Chartered Accountants II [email protected] II Cell # +8801714214990
    Chapter 14: Codes
    . of professional ethics
    Threats

    Self-interest threat - for example, having a financial interest in a client

    Self-review threat - for example, auditing financial statements prepared by the firm

    Advocacy threat - for example, promoting the client's position by dealing in its shares

    Familiarity threat - for example, an audit team member having family at the client

    Intimidation threat - for example, threats of replacement due to disagreement

    Bhola Nath Kundu ACA II Deputy Director II ACNABIN Chartered Accountants II [email protected] II Cell # +8801714214990
    Chapter 14: Codes
    . of professional ethics
    Safeguards

    Safeguards created by the profession, legislation or regulation


    Examples:
    • Educational training and experience requirements for entry into the profession
    • Continuing professional development requirements
    • Corporate governance regulations
    • Professional standards

    Safeguards within the work environment


    Examples:
    • Involving an additional professional accountant to review the work done or otherwise advise as necessary
    • Consulting an independent third party, such as a committee of independent directors
    • Rotating senior personnel

    Bhola Nath Kundu ACA II Deputy Director II ACNABIN Chartered Accountants II [email protected] II Cell # +8801714214990
    Chapter 14: Codes
    . of professional ethics

    Bhola Nath Kundu ACA II Deputy Director II ACNABIN Chartered Accountants II [email protected] II Cell # +8801714214990
    .

    Bhola Nath Kundu ACA


    Deputy Director (Head of Quality Assurance)
    Audit & Advisory
    ACNABIN Chartered Accountants
    [email protected]
    Cell # +8801714214990

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