The Code of Ethics for Professional Accountants

The Code of Ethics for Professional Accountants sets out the fundamental principles of ethics to guide the behaviour of professional accountants and help them to uphold their responsibility to act in the public interest. In Hong Kong, the code comprises local pronouncements and the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA).

The fundamental principles
The fundamental principles within the Code of Ethics are integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. These principles establish the standard of behaviour expected of a professional accountant and reflect the profession’s recognition of its public interest responsibility.

Explore the fundamental principles and how they apply in some example work contexts below.

Integrity

Be straightforward and honest in all professional and business relationships.

As the Director, have you evaluated the spirit of the chief executive officer’s expansion plan to determine if it effectively relies on any inappropriate influence of government officials to obtain approvals for building a factory and selling products?

Objectivity

Don’t allow bias, conflicts of interest, or the undue influence of others to compromise sound judgement.

As the Audit Manager, being mindful of the potential Executive Vice President job opportunity, are you able to plan and execute the audit with an appropriate level of scepticism and due diligence?

Professional competence and due care

Always apply an appropriate level of professional knowledge, skill, and diligence.

As the Director, have you done enough work to really understand the rules and regulations governing bribery so that your CEO can make the right decision about expanding into new markets?

Confidentiality

Respect the confidentiality of information acquired because of professional and business relationships, subject to applicable laws

As the Director, you subsequently discover emails describing a scheme to funnel money to government officials; how should you communicate this information internally—including the Chief Executive Officer if necessary? What obligation do you have to notify authorities or disclose this information?

Professional behaviour

Comply with all laws and regulations and don’t act in a way that could discredit the profession.

As the Vice President of Finance, is the analysis you prepared in support of the new pricing policy fair and accurate – such that it would hold up to professional scrutiny – and not be viewed as biased or incomplete information that “justifies” what the marketing department wants to charge?

Reproduced from Exploring the IESBA Code Instalment 1: The Five Fundamental Principles

Reading the code
The code of ethics can be found in the Members’ handbook.
For an interactive, searchable and web-based version, the Code of Ethics is available via IFAC’s e-International Standards platform (registration required). The platform provides access to the standard, easy searching, links to non-authoritative resources and definitions, enabling professional accountants to explore the code and its various sections.

Ethics educational video

This video from the Institute recaps the structure and fundamental principles of the Code of Ethics for Professional Accountants to help you refresh your memory and uphold professionalism.

If you cannot view the video above, please click here.

Revisions to the code
The Code of Ethics for Professional Accountants has been revised in recent years to strengthen provisions within it and the ability of professional accountants to identify, evaluate and address threats to the fundamental principles and where applicable, be independent. More information about these revisions can be found here.

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The Code of Ethics for Professional Accountants