RULES OF PROFESSIONAL CONDUCT

RULES OF PROFESSIONAL CONDUCT

Role of practitioner in maintaining:  Professional integrity
                         Objectivity
                         Independence

Practitioners should behave with integrity in all professional, business & personal relationships and should not allow their objectivity to become affected. Practitioner independence relates to individual accountants in the performance of their work & is concerned with integrity, refusal to have their opinion influenced and freedom from self interest. He has a responsibility to maintain a state of mind which results in independent actions.

The auditor must not be influenced or succumb to pressures concerning the work to be performed or techniques to be used. They must develop their own audit plans and not be pressured by mgt or any one else to change their work. Their work should only be reviewed by their professional peers & not by mgt. The auditor must not be restricted in his work and no source of information should be unavailable. Access to books & records should not be denied to the auditor.

The practitioner should be free from pressures to suppress facts revealed by their audit work. There should be no undue influence on his reporting/judgment, and there should be no sense of obligation to anyone other than the statutory duties placed on the auditor. Such pressure might be in the form of fee dependence, where the auditor is dependent on fees from one particular client.

Professional independence relates to both individuals and the profession as a whole. It is important that the image of the profession is maintained and the public is assured of the integrity of the profession.

Importance of the role of confidentiality to the auditor-client relationship

Confidentiality is a fundamental principle of IFAC’s Code of Ethics for Professional Accountants. However, it is not a fundamental principle of ACCA’s Rules of professional Conduct. It is also an implied contractual term.

The auditor should monitor & maintain confidentiality and security of information obtained during the course of their audit work. This is a mandatory competence requirement for membership of newly qualified Chartered Accountants. This applies to all professional Accountants.

In particular:

• Confidential info is only disclosed to those entitled to receive it.


• Info obtained during the course of the audit is not used for any other purpose , other than the client’s benefit


• Any decision to over ride the duty of confidence (eg if required by court order) is taken after due consideration & discussion with professional colleagues.


• The duty of confidentiality continues even after auditor-client relationship ceases


• An accountant who moves to a new employment must distinguish previously confidential info acquired


• Prospective accountants must treat info given by existing accountants in the strictest confidence


• Students registered with ACCA are also bound by the ACCA Rules of Professional Conduct.

In order to fulfill their duties, auditors need to access all information they consider necessary. A duty of confidentiality is therefore essential to ensure that the scope of their audit is not limited as a result of info being withheld.

Exceptions to the rule of confidence

ACCA states:

1. Obligatory disclosure:

If a member knows or suspects his client have committed acts of treason, he is obliged to disclose all the info at his disposal to the competent authority.

1. Voluntary disclosure:

• There is a public duty to disclose


• Disclosure is required by process of law