Ethical Considerations

Professional Accounting Bodies and the Ethical Code

The Main Professional Accounting Bodies

These bodies establish and enforce codes of conduct for their members.

Purpose of the Ethical Code

The ethical code sets out the required standards of professional behaviour for accountants. It:

• Protects the reputation of the professional accounting bodies
• Provides clear expectations for members' conduct
• Ensures public confidence in the accounting profession

Misconduct and Penalties

Failure to comply with codes of practice can result in disciplinary action for misconduct. Misconduct includes:

• Bringing the accounting profession into disrepute
• Acting in breach of rules and regulations

An investigation is conducted to establish guilt. Penalties and sanctions range from:

1. Fine — financial penalty for minor breaches
2. Membership suspension — temporary removal of professional status
3. Membership expulsion — permanent removal from the professional body