ACCOUNTING ETHICS

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Authors: Thu Trang & Hoang Anh



1. What is Accounting Ethics?

Accounting ethics refers to adhering to certain regulations and norms established by regulatory authorities that every individual involved in accounting should follow in order to avoid misusing financial data or their managerial position.

2. Professional ethics principles of integrity

This principle requires all professional accountants to be candid and honest in all their professional relationships. Integrity also requires being fair and trustworthy

3. Principles of professional ethics on objectivity

The principle of objectivity requires all professional accountants not to let bias, conflict of interest, or the undue influence of others govern their professional or business judgments its business.

4. Ethical principles of confidentiality

Professional accountants and auditors must not:

    • Disclose information obtained from professional and business relationships outside the accounting, auditing, or business firm or organization where they work without the consent of an authorized person unless otherwise authorized. rights or obligations to be disclosed according to the provisions of law or the guidance of professional organizations.
    • Use confidential information obtained from your professional and business relationships for your personal gain or the benefit of a third party.

Professional accountants and auditors must maintain information confidentiality even in a non-working environment. Always be alert to the risk of unintentional disclosure, especially to close business partners or to a member with a close or direct relationship.

5. Principles of professional conduct

Honesty, integrity, and morals are more broad concepts that ethics and ethical action refer to. The code of professional conduct, on the other hand, is a collection of regulations established by certified public accountants regulating organizations. Some regulations are universal, despite the fact that they are set by various authorities all across the world. Let's take a deeper look at a few of these key guidelines.

6. Principle of prudence

Prudence requires accountants and auditors to have the responsibility to act in accordance with the requirements of the work carefully, thoroughly, and in a timely manner.



7. Principles of professional competence

Accounting and auditing professions are specific professions that require the professional competence of practitioners. Professional competence is formed through two stages:

  • Stage of acquiring professional competence
  • Professional Competency Maintenance Stage

Maintaining professional capacity requires accountants and auditors to have the latest knowledge of relevant professional techniques and business lines.

Updating professional knowledge helps accountants and auditors develop and maintain their ability to provide quality services in a professional working environment.

Thus, if you want to pursue a career in accounting and auditing in general, you not only need to improve your professional capacity but also master the standard rules of professional ethics.

References

- Cộng đồng chia sẻ kiến thức kế toán. 2020. Các nguyên tắc đạo đức nghề nghiệp của kế toán, kiểm toán viên - Cộng đồng chia sẻ kiến thức kế toán. [online] Available at: <https://www.ketoan.vn/10460/cac-nguyen-tac-dao-duc-nghe-nghiep-cua-ke-toan-kiem-toan-vien/> [Accessed 11 October 2021].

  -Thakur, M., n.d. Accounting Ethics. [online] WallStreetMojo. Available at: <https://www.wallstreetmojo.com/accounting-ethics/> [Accessed 18 October 2021]. 
 
  - Corporate Finance Institute. n.d. Accounting Ethics. [online] Available at: <https://corporatefinanceinstitute.com/resources/knowledge/accounting/accounting-ethics/> [Accessed 12 October 2021].

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