Integrity

Integrity
110.1. The principle of integrity imposes an obligation on all professional accountants to be

straightforward and honest in professional and business relationships. Integrity also implies fair
dealing and truthfulness.
110.2. A professional accountant should not be associated with reports, returns, communications or
other information where they believe that the information:
a) Contains a materially false or misleading statement;
b) Contains statements or information furnished recklessly; or
c) Omits or obscures information required to be included where such omission or obscurity
would be misleading.
110.3. A professional accountant will not be considered to be in breach of paragraph 110.2 if the
professional accountant provides a modified report in respect of a matter contained in paragraph
110.2.
Objectivity
120.1. The principle of objectivity imposes an obligation on all professional accountants not to
compromise their professional or business judgment because of bias, conflict of interest or the undue
influence of others.
120.2. A professional accountant may be exposed to situations that may impair objectivity. It is
impracticable to define and prescribe all such situations. Relationships that bias or unduly influence the
professional judgment of the professional accountant should be avoided.
Professional Competence and Due Care

130.1. The principle of professional competence and due care imposes the following
obligations on professional accountants:
a) To maintain professional knowledge and skill at the level required to ensure that clients or
employers receive competent professional service; and
b) To act diligently in accordance with applicable technical and professional standards when
providing professional services.
130.2. Competent professional service requires the exercise of sound judgment in applying
professional knowledge and skill in the performance of such service. Professional competence may
ETHICS
be divided into two separate phases:
a) Attainment of professional competence; and
b) Maintenance of professional competence.
130.3. The maintenance of professional competence requires a continuing awareness and an
understanding of relevant technical professional and business developments. Continuing professional
development develops and maintains the capabilities that enable a professional accountant to perform
competently within the professional environments.
130.4. Diligence encompasses the responsibility to act in accordance with the requirements of an
assignment, carefully, thoroughly and on a timely basis.
130.5. A professional accountant should take steps to ensure that those working under the professional
accountant’s authority in a professional capacity have appropriate training and supervision.
130.6. Where appropriate, a professional accountant should make clients, employers or other users of
the professional services aware of limitations inherent in the services to avoid the misinterpretation of
an expression of opinion as an assertion of fact.
Confidentiality
140.1. The principle of confidentiality imposes an obligation on professional accountants to refrain
from:
a) Disclosing outside the firm or employing organization confidential information acquired as a
result of professional and business relationships without proper and specific authority or
unless there is a legal or professional right or duty to disclose; and
b) Using confidential information acquired as a result of professional and business relationships
to their personal advantage or the advantage of third parties.
140.2. A professional accountant should maintain confidentiality even in a social environment. The
professional accountant should be alert to the possibility of inadvertent disclosure, particularly
in circumstances involving long association with a business associate or a close or immediate family∗
member.
140.3. A professional accountant should also maintain confidentiality of information
disclosed by a prospective client or employer.
140.4. A professional accountant should also consider the need to maintain confidentiality of
information within the firm or employing organization.
140.5. A professional accountant should take all reasonable steps to ensure that staff under the
professional accountant’s control and persons from whom advice and assistance is obtained respect the
professional accountant’s duty of confidentiality.
140.6. The need to comply with the principle of confidentiality continues even after the end of
relationships between a professional accountant and a client or employer. When a professional
accountant changes employment or acquires a new client, the professional accountant is entitled to use
prior experience. The professional accountant should not, however, use or disclose any confidential
information either acquired or received as a result of a professional or business relationship.
140.7. The following are circumstances where professional accountants are or may be required to
disclose confidential information or when such disclosure may be appropriate:
a) Disclosure is permitted by law and is authorized by the client or the employer;
b) Disclosure is required by law, for example:
a. Production of documents or other provision of evidence in the course of legal
proceedings; or
b. Disclosure to the appropriate public authorities of infringements of the law
that come to light; and
c) There is a professional duty or right to disclose, when not prohibited by law:
a. To comply with the quality review of a member body or professional body;
b. To respond to an inquiry or investigation by a member body or regulatory body;
c. To protect the professional interests of a professional accountant in legal
proceedings; or
d. To comply with technical standards and ethics requirements.
140.8. In deciding whether to disclose confidential information, professional accountants should
consider the following points:
a) Whether the interests of all parties, including third parties whose interests may be affected,
could be harmed if the client or employer consents to the disclosure of information by the
professional accountant;
b) Whether all the relevant information is known and substantiated, to the extent it is
practicable; when the situation involves unsubstantiated facts, incomplete information or
unsubstantiated conclusions, professional judgment should be used in determining the type of
disclosure to be made, if any; and
c) The type of communication that is expected and to whom it is addressed; in particular,
professional accountants should be satisfied that the parties to whom the communication
is addressed are appropriate recipients.
Professional Behavior
150.1. The principle of professional behavior imposes an obligation on professional
accountants to comply with relevant laws and regulations and avoid any action that may bring
discredit to the profession. This includes actions which a reasonable and informed third party, having
knowledge of all relevant information, would conclude negatively affects the good reputation of the
profession.
150.2. In marketing and promoting themselves and their work, professional accountants should not
bring the profession into disrepute. Professional accountants should be honest and truthful and should
not:
a) Make exaggerated claims for the services they are able to offer, the qualifications they
possess, or experience they have gained; or
b) Make disparaging references or unsubstantiated comparisons to the work of others.

Integrity

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110.1. The principle of integrity imposes an obligation on all professional accountants to be

Professional Competence and Due Care

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