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
Explore the fundamental principles and how they apply in some example work contexts below.
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?
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.
Respect the confidentiality of information acquired because of professional and business relationships, subject to applicable laws
Comply with all laws and regulations and don’t act in a way that could discredit the profession.
Reproduced from Exploring the IESBA Code Instalment 1: The Five Fundamental Principles
Reading the code Members’ handbook . 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
Educational material available on the code The Exploring the IESBA Code series of articles from IFAC and IESBA promotes awareness, adoption and implementation of the code of ethics. Each of the twelve-part series focuses on a specific aspect of the Code using real-world situations in a manner that is relatable and practical, and include useful links to access relevant resources, including content in the code.
Institute articles A Plus
project investigating how technology is changing the profession. Their work covers two aspects:
Technology-related revisions to the code. Developing non-authoritative material to respond to immediate stakeholder calls for technology-related guidance to assist professional accountants in business and in public practice, including auditors, to understand how to apply the existing provisions in the code. Ethical leadership in the digital world
Ethical leadership in the digital world
This four part series from Chartered Professional Accountants of Canada, the Institute of Chartered Accountants of Scotland, the IESBA and the IFAC offers practical guidance for professional accountants, professional accountancy organizations, educators and employers on the ever-changing technology landscape and its implications for ethical leadership, including the challenges and opportunities ahead for the accountancy profession.
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 .
