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5
Accountants and ethics 
As an accountant, your values and attitudes 
flow through
everything you do professionally. They 
contribute to the 
trust
the wider community puts in the profession and the 
perception
it has of it. 
Key reasons for accountants to behave ethically 
(a) 
Ethical issues may be a matter of law and regulation and accountants are expected to apply 
them. 
(b) 
The profession requires members to conduct themselves and provide services to the public 
according to certain standards. By upholding these standards, the profession's reputation and 
standing is protected. 
(c) 
An accountant's ethical behaviour serves to protect the public interest. 
5.1 Approaches to accountancy ethics 
Professionals will have their own idea of what behaviour is ethical and what is not. Although there will 
be differences, collectively there are common views and values that shine through. 
To help individuals judge whether or not they are acting ethically in particular circumstances, guidance 
should be given (usually by a governing body) that clarifies the matter. Such guidance is usually known 
as a 
'Code of ethics'
or 
'Code of conduct'
.
 
 
6
A code of ethics for accountants 
The 
International Federation of Accountants
(IFAC) is an international body representing all the major 
accountancy bodies around the world. Its mission is to develop the 
high standards
of professional 
accountants and enhance the quality of services they provide. 
6.1 IFAC and the ACCA 
To enable the development of high standards, IFAC's ethics committee established a 
code of ethics
. The 
code indicates a minimum level of conduct that all accountants must adhere to. As a member of IFAC, 
ACCA released its own code of ethics, designed to align to the IFAC code. The IFAC code is now 
administered by the International Ethics Standards Board for Accountants (IESBA). The material 
contained in this section is from the ACCA’s 2018 Rulebook that contains the Code of Conduct and 
Ethics (ACCA, 2018). 
6.1.1 Fundamental principles of the ACCA Code of Ethics and Conduct 
When you become a member of the ACCA, you agree to be bound by the ACCA's Code of Ethics and 
Conduct. Members are required to comply with the following fundamental principles. 

Integrity 

Confidentiality 

Objectivity 

Professional 
behaviour 

Professional competence and due care 
The Code can be found in Section 3 of the ACCA 2018 Rulebook (ACCA, 2018). It is quite long but you 
should try to read it (or at least skim read it). It will give you an insight into issues that may arise in 
questions in your exam. 
For example, there is a section on receiving gifts from clients which states that a gift 'gives rise to threats 
to compliance with the fundamental principles'. It goes on to suggest that objectivity may be threatened 
and that gifts and hospitality should only be accepted if the value of the benefit is modest. Hopefully it is 
clear to you that this could easily be the subject of a question in your exam. 
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