Professional Ethics and Conduct for New Zealand Accountants

Professional Ethics and Conduct

According to the New Zealand Institute of Chartered Accountants (NZICA), the members of the accountancy profession are entrusted as the expert business partners that will solely perform according to their important role in the society. To work to the highest standard of professionalism, attain the highest levels of performance, and act in the public interest. The NZICA Code of Ethics requires the accountants to act objectively and to be seen as independent. The independence of the auditors is important in the disclosure of the financial reports. However, the access of the records and information will remain as part of the firm’s property but will address under the NZICA as part of the quality assurance procedures.

Based on the scenario provided, the fundamental principles in the profession may be a subject of threats in the compliance of the profession ethical requirements. The threats have a broad range of circumstances that might find in the following (Fairclough, 2007):

Self-interest threats may occur as the result of financial or other interests of a professional accountant or of an immediate or close family (A parent, child or sibling, who is not an immediate family member) member.

Self-review threats which may occur when a previous judgment needs to be re-evaluated by the professional accountant responsible for that judgment.

Advocacy threats that may occur when a professional accountant promotes a position or opinion to the point that subsequent objectivity may be compromised.

Familiarity threats occur when, because of a close relationship, a professional accountant becomes too sympathetic to the interests of others.

Intimidation threats occur when a professional accountant is deterred from acting objectively by threats, actual or perceived.

The only alternative that can be used to prevent or eliminated the threats in the profession is the ongoing training and monitoring of the assessment methods of the auditors/accountants with their clients and their compliance towards the responsible service. In addition, the auditors can acquire the knowledge by focusing on various case studies that might present a real-life situation that exists in various circumstances. They must manage to weigh what is necessary and appropriate in order to avoid the confusion and issues concerning the professionalism.  

Integrity is defined as the ability of a person to be straightforward and honest in the professional and business relationships. This is through the action of being fair and dealing with the truthfulness as far as not being associated with any of the information that contains the misleading statements or any information (FEE, 2009). The public relies on the ethical integrity given and assured by the professional authorities through the professional responsibilities held and safeguarded (IFAC, 2006).

Objectivity arises from the accountancy profession by recognizing the ethical behavior and the code of ethics and supported by the proper training. The codes of ethics are more focused on the matter of objectivity and independence wherein the concept is easy to understand even by different people at any status. In a deep sense, the objectivity is also comprised with the idea of integrity that is used even in the international professional practice (FEE, 2009).

Professional Competence and Due Care can be explained through a number of activities implemented in the organization. By the practice of assessment, all the form of professional competence can be transpired through writing. As with the term competence in the accounting profession, it can be easier to perform a particular task as being guided with the standards and with the consultation from the real working environments. The professional competence and due care can be also achieved through the application of training such in educational activities or within the workplace, as accordance to what level of interest is needed in the given situation (IFAC, 2006).

Confidentiality or secrecy in all the papers, documents, and/or information included in the accounting activities. Being confidential is one of the high lightened works of an accountant because any privilege and abuse might arise if any of the documents are lifted in the public eye (Public Law, 2002).

Profession Behavior is through the provided professional values, ethics, and attitudes, the professional behavior and characteristics can be identified as part of the professional accountants’ profession. Moreover, the professional behavior can be also recognized with the compliance on the technical standards set in the organization (IFAC, 2006) and in the long run, be part of their overall behavior in performance, attitudes, and actions towards leadership, decision making, strategies, policies, and culture (FEE, 2009).

If the firm found some threats or issues in the professionalism of the auditors/accountants, it is important that the firm should pose appropriate action such as warming, cancelation of contract, or dismissal. All of the actions of the firm are consciously based on the scenario and weighing of the situation being faced by the professional auditor/accountant.

 

References:

Bedard, J.C., & Jackson, C., (2003) Information Systems Risk Factors, Risk Assessments, And Audit Planning Decisions, Accessed 19 July 2010, from http://aaahq.org/audit/midyear/03midyear/papers/Systems%20Risk%20Factors%20and%20Audit%20Planning%2009-18.pdf

Fairclough, G., (2007) Guidance Notes in International Standards of Auditing (ISA), Accessed 19 July 2010, from http://www.icatt.org/downloads/isa-guidancenotes.pdf

FEE, (2009) Integrity in Professional Ethics: Ethics and Independence, Federation of European Accountants, Accessed 19 July 2010, from http://www.fee.be/fileupload/upload/Integrity%20in%20Professional%20Ethics%20A%20Discussion%20Paper%200909%20Colour2292009381653.pdf

IFAC, (2006) Approaches to Developing and Maintaining Professional Values, Ethics and Attitudes, International Federation of Accountants, Proposed International Education Practice Statement Vol. 20 Accessed 19 July 2010, from http://www.ifac.org/education/Meeting-FileDL.php?FID=2824

Ministry of Economic Development (2009) The Statutory Framework for Financial Reporting, Discussion Document

Public Law, (2002) Sarbanes-Oxley Act of 2002, Corporate Responsibility, 107th Congress Accessed 19 July 2010, from http://www.sec.gov/about/laws/soa2002.pdf

 

 

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