Five Fundamental Principles of Professional Ethics
The Five Principles
The ethical code sets out five fundamental principles of professional ethics that all accountants must follow.
1. Integrity
Being straightforward, honest and truthful in all professional and business relationships.
- Must not be associated with information that is materially false or misleading, or misleading by omission
- Honesty with clients, employers, colleagues and the public
2. Objectivity
Not allowing bias, conflict of interest, or the undue influence of others to override professional judgement.
- Decisions must be based on facts and professional standards, not personal relationships or financial interests
3. Professional Competence and Due Care
Maintaining knowledge and skill at a level sufficient to provide a competent professional service.
- Must act diligently in accordance with current developments in practice, legislation and techniques
- Includes keeping up to date through continuing professional development (CPD)
4. Confidentiality
Not disclosing information to third parties without specific authority, unless there is a legal or professional duty to do so.
- Information acquired through professional work must be kept private
- Must not use confidential information for personal advantage
5. Professional Behaviour
Ensuring that behaviour complies with relevant laws and regulations and avoids bringing the profession into disrepute.
- Must comply with all relevant legislation
- Conduct must not damage the reputation of the accounting profession
Memory Aid: I O P C P
Integrity → Objectivity → Professional competence → Confidentiality → Professional behaviour