Ethics 1 - What Are The 5 Ethical Principles You Need to Know for #acca #auditandassurance

Summary

This video outlines five key ethical principles that accountants must follow: Integrity, Objectivity, Professional Competence, Professional Behavior, and Confidentiality. Accountants are expected to act honestly and straightforwardly, avoiding bias and conflicts of interest. They must maintain up-to-date knowledge, adhere to professional standards, and comply with laws and regulations. Additionally, they should respect confidentiality, only disclosing information when legally or professionally required. These principles guide accountants in maintaining ethical conduct, particularly in scenarios where their actions may be scrutinized or challenged.

Takeaways

• 😀 Integrity is the first ethical principle for accountants: act straightforwardly and honestly, showing strength of character.
• 😀 Objectivity is the second principle: avoid bias, conflicts of interest, and undue influence.
• 😀 In exams, scenarios may present threats to these ethical principles, so be mindful of them.
• 😀 Professional competence and due care are essential: maintain knowledge through CPD and act within professional and technical standards.
• 😀 Professional behavior is key: comply with laws, regulations, and act as society expects without discrediting the profession.
• 😀 Confidentiality is crucial: protect the information acquired in a professional capacity.
• 😀 Accountants must sometimes disclose confidential information when legally required or if there's a professional duty to do so.
• 😀 Ethical principles guide accountants to avoid involvement in misleading or unethical activities.
• 😀 Accountants should ensure their professional competence is up to date to ensure proper service delivery.
• 😀 Ethical behavior as an accountant is integral to maintaining public trust and the integrity of the profession.

Q & A

What is the first ethical principle mentioned in the script?

The first ethical principle is to act with integrity, meaning accountants should be straightforward, honest, and have a strong character to avoid being easily swayed.

What does 'acting with integrity' entail for an accountant?

Acting with integrity involves being honest in all dealings, demonstrating strength of character, and avoiding associations with anything misleading.

What is meant by being 'objective' as an accountant?

Being objective means avoiding bias, ensuring there are no conflicts of interest, and acting without undue influence from others.

Why is it important for accountants to be objective?

Being objective is essential to ensure impartiality, fairness, and avoid making decisions that could be influenced by personal interests or external pressures.

What are the key aspects of maintaining professional competence?

Professional competence involves continually maintaining knowledge through CPD (Continuing Professional Development) and acting within professional and technical standards.

What does 'acting with due care' involve?

Acting with due care means performing tasks responsibly, ensuring decisions are made with adequate knowledge and attention to detail.

What is the role of professional behavior in accounting?

Professional behavior requires accountants to act in a manner that meets societal expectations, comply with laws and regulations, and avoid discrediting the profession or making exaggerated claims.

What does confidentiality mean for an accountant?

Confidentiality involves keeping the information acquired during professional work private, unless there is a legal obligation or professional duty to disclose it.

Under what circumstances might an accountant need to disclose confidential information?

An accountant may need to disclose confidential information if legally required or if there is a professional duty to do so, such as in cases of preventing harm or complying with regulations.

How can accountants prepare for scenarios that involve ethical principles during exams?

Accountants can prepare by being aware of potential threats to ethical principles such as integrity, objectivity, and confidentiality, which might arise in exam scenarios and ensuring they follow all ethical guidelines.