Module:04_Ethics, Corporate Governance and Business Law-2nd Edition by Md.Md.Monowar FCA,FCMA,CPA,FCS, CPFA

Fundamentals of Ethics,
Corporate Governance and Business Law
2nd Edition (April-2020)
Page# 22
Md.Monowar Hossain FCA, CPA, FCS, CGA, CIPFA(UK), FCMA
CFO & Head of ICC, Agrani Bank Limited
eMail: md.monowar@gmail.com
Corporate Governance and Business Laws
Module -04
Ethics and
business
(15%)
(Contin…)
10.Personal development and lifelong learning.
11.The personal qualities of reliability, responsibility,
timeliness, courtesy and respect.
12.The ethical principles of integrity and objectivity.
13.Professional competence, due care and confidentiality.
14. Disclosure required by law.
15. The concepts of independence, skepticism, accountability and
social responsibility.
16. The CIMA and IFAC ‘Code of Ethics for Professional Accountants’.
 Personal development and lifelong learning
Every professional person has a duty in
maintaining their role of acting in the public
interest in keeping themselves up to date
professionally that is technically as well
developing their competencies to be better
informed. This has grown in importance as
the pace of change develops and the role of
professional accountant grows more complex.
This is one of the fundamental principles in
the CIMA ‘Code of Ethics’, where the
professional accountant has the duty to
maintain professional knowledge and skill at
the level required to ensure that a client or
employer receives competent professional
service based on current developments in
practice, legislation and techniques.
The concept of competent
professional service is
based not only on attaining
professional competence
but also in maintaining it.
This requires a continuing
awareness of up-to-date
developments in the
profession. This can be met
through continuing
professional development.
CIMA has developed the CIMA
Professional Development
framework which addresses
both the requirements on
members and the institute
regarding CPD, and the ways
in which CIMA is supporting
members in their professional
development.

Page# 23
For example, the public expectation is that all
accountants are ‘up to speed all the time’
which requires commitment from all those in
the profession. This is because the issues a
professional face do change over time. For instance,
given the rapid advance in technology, returns may
be filed electronically putting greater emphasis on
professional review. In matters of security of
customer/client data where confidential information
is transferred via e-mail, there is always the
potential for that information to be corrupted if the
computer system does not have up-to-date firewall
and virus protection and so forth.
The personal qualities of reliability, responsibility, timeliness, courtesy and
respect.
Members of the profession need, or
need to develop, certain qualities and
virtues in order to meet the
expectations of CMA and the public
served in the wider context. In
upholding the highest standards of
ethical behaviour, members are
contributing to the promotion of the
integrity of CMA’s qualification and
supporting CMA’s purpose.
The particular qualities and virtues sought are reliability, responsibility, timeliness, courtesy
and respect. These are taken from International Education Standard for Accountants,
published by IFAC Values, Ethics & Attitudes.
Reliability
This is the concept
of being able to be
trusted by others
and to be
dependable through
the ability to deliver
what and when it
has been agreed
with another.
Responsibility
This is the concept
of being accountable
for one’s actions and
decisions.

Page# 24
Timeliness
This is the concept
of delivering in a
timely manner
without delay and
meeting the
expectations of
others.
Courtesy
This is the virtue of
demonstrating
politeness and good
manners towards
others.
Respect
This is the virtue
demonstrating an
attitude of esteem,
deference, regard or
admiration of others
in dealing with them
especially where
their attitudes might
differ.
The ethical principles of integrity and objectivity
The CIMA ‘Code of Ethics’ identifies five fundamental principles and a professional
accountant is required to comply with the following fundamental principles:
(a)Integrity
A professional accountant should be straightforward and
honest in all professional and business relationships.
(b)Objectivity
A professional accountant should not allow bias, conflict of
interest or undue influence of others to override
professional or business judgements.
(c) Professional competence and due care
A professional accountant has a continuing duty to maintain professional knowledge and
skill at the level required to ensure that a client or employer receives competent
professional service based on current developments in practice, legislation and
techniques. A professional accountant should act diligently and in accordance with
applicable technical and professional standards when providing professional services.
(d)Confidentiality
A professional accountant should respect the confidentiality of information acquired as a
result of professional and business relationships and should 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. Confidential information acquired as a result of
professional and business relation-ships should not be used for the personal advantage of
the professional accountant or third parties.
(e)Professional behaviour

Page# 25
A professional accountant should comply with relevant laws and regulations and should
avoid any action that discredits the profession.
Integrity
Integrity is a holistic term implying other values
too so in addition to being straightforward and
honest in all professional and business relationships,
this principle implies fair dealing and truthfulness.
It particularly relates to reporting where a false or
misleading statement might be made, or provided
without care or attention, or a report might omit
information, or be obscure and dense such that the
report becomes misleading.
Objectivity
It is important for students and members to avoid
putting themselves in positions where they or their
work could become compromised. This might be
through bias, conflicts of interest of interest or
through the undue influence of others. In these
types of situations an individual’s objectivity may be
impaired.
The sorts of situation that could arise are numerous, from forming an illicit relationship that
may cause embarrassment, to accepting lavish hospitality which is later used to influence
behaviour. It is impracticable to define and prescribe all such situations but students need to
be aware of, and resist, any such potential comprises of their objectivity. If a threat to
objectivity is identified, safeguards should be considered and applied to eliminate or reduce
the threat to an acceptable level. Such safeguards could include with-drawing from the
engagement, introducing more supervision into the process, terminating the relationship
giving rise to the threat, and discussing the issue with higher management and those
reviewing the governance of the client relationship.
Professional competence, due care and confidentiality
Professional competence and due care
Professional competence implies knowledge, skill,
diligent delivery and an awareness of all the relevant
issues in performing tasks. The professional is
expected to maintain the competence through
continuing professional development to maintain
their capabilities to act responsibly at all times.
There is also an expectation of acting diligently
which encompasses acting in accordance with the
requirements of an assignment carefully, thoroughly
and on a timely basis.
Due care covers the wider responsibility the professional accountant has to ensure that those
working under their authority have the necessary skills and capabilities to do so, and in

Page# 26
particular have the professional capacity and appropriate training and supervision.
In accordance with the other principles and virtues expected of a professional accountant,
they should ensure that clients or employers are aware of limitations inherent in services
being provided to them so as to avoid the misinterpretation of an expression of opinion as an
assertion of fact.
Confidentiality
The professional accountant is bound by
the principle of confidentiality in all that
they do unless required by law,
professional right or duty to disclose.
Such confidentiality covers disclosing
information outside the firm or
employing organization and using
information for personal or third party
gain. Confidentiality extends to
situations in a social environment too
where the professional accountant
should be alert to the possibility of
inadvertent disclosure to a close friend
or family member.
Confidentiality also extends after the end of a relationship between a professional
accountant and a client or employer. The professional accountant may use prior experience
but not prior information gained in a previous role.

Module:04_Ethics, Corporate Governance and Business Law-2nd Edition by Md.Md.Monowar FCA,FCMA,CPA,FCS, CPFA

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