Here are Fundamental principles of ethics described by ACCA to be followed by all ACCA members, Students must be memorized all of them, this can be tested straightforward and in MCQ’s in CBE.
1. Integrity: The auditor should be straight forward & honest in all professional and business relationships. Auditors will be associated with communications, returns or other information and reports where they believe that the information contains materially false or misleading statements.
2. Objectivity: Members should not allow bias, conflicts of undue or interest influence of others to override professional or business judgments.
3. Professional competence and due care: to maintain professional skills and knowledge at a certain level to ensure that a client receives competent professional services. to act professionally and in accordance with applicable technical and professional standards.
4. Confidentiality: Auditors should maintain the confidentiality of information obtained as a result of business relationships and professional and should not disclose any such information to third parties without proper and specific authority
There are, however, circumstances where auditors may disclose information to third parties without first obtaining permission. These can be categorized as obligatory and voluntary disclosures.
Obligatory: Members are obliged to make disclosure where, there is a statutory right or duty to disclose, Like if the auditor suspects the client is involved in money laundering, drug trafficking or terrorism in which case they must immediately notify the relevant authorities.
As well auditors must make a disclosure if compelled by the process of law, Like under a court order or summons, under which they are obliged to reveal information.
In certain circumstances auditors are free, as opposed to obliged, to disclose information without obtaining the client’s permission first. These circumstances can be categorized into the four areas below:
Public interest – An auditor should disclose confidential information if disclosure can be justified in the ‘public interest’. This would be perhaps if TCWG are involved in fraudulent activities;
Protect a member’s interest – Members/auditors may disclose information to defend themselves against a negligence action, disciplinary proceedings or if suing for unpaid fees;
Authorized by statute/laws – There are cases of express statutory provision where disclosure of information to a proper authority prioritized the duty of confidentiality;
Non-governmental bodies – Members may be approached by non-governmental bodies seeking information relating to suspected acts of unlawfulness not amounting to a crime or civil wrong. Disclosure should only be made to those non-governmental bodies with statutory powers to compel disclosure.
5. Professional behavior: Members should comply with relevant laws and regulations and should avoid any action that discredits the profession.
Fundamental principles of ethics
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