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Code of Ethics for Professional Accountants: Fundamental Principles The International Ethics Standards Board for Accountants (IESBA) is an independent standard-setting body that develops the Code of Ethics for Professional Accountants (the Code). According to the Code, the fundamental principles of professional ethics for professional accounts in the Code are as follows: Integrity to be straightforward and honest in all professional and business relationships. Objectivity to not allow bias, conflict of interest or undue influence of others to override professional or business judgments. Professional competence and due care to maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional services based on current developments in practice, legislation and techniques and act diligently and in accordance with applicable technical and professional standards. Confidentiality to respect the confidentiality of information acquired as a result of professional and business relationships and, therefore, not disclose any such information to third parties without proper and specific authority, unless there is a legal or professional right or duty to disclose, nor use the information for the personal advantage of the professional accountant or third parties. Professional behavior to comply with relevant laws and regulations and avoid any action that discredits the profession. Case 2: Non-disclosure to auditors You are employed as an Accounting Systems Manager. During your work you overhear a Financial Controller in one department, saying that she had not been disclosing certain things to the auditor. You dont know whether to believe this but are uneasy, as the culture appears to be one of getting away with as much as possible. In addition, you have heard that a bribe was paid to an overseas company to secure work. You are uneasy about the situation and worried that a poor relationship with your line manager may prevent you from exploring the accuracy of the statements given to you. REQUIRED: 1. Can you overlook the financial controllers comments, the culture and the bribe allegedly paid to the overseas company and still demonstrate integrity? 2. Knowing that something may be wrong, how can you maintain your objectivity? 3. Is there any basis in which you could or should make disclosures? 4. How should you proceed so as not to discredit yourself?

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