This document outlines professional ethics guidelines for accountants. It discusses objectives like credibility, professionalism and quality service. Key guidelines include integrity and objectivity, resolving ethical conflicts competently and confidentially, following tax and cross-border activity standards, and properly advertising. Public sector accountants must also maintain independence, not accept commissions, avoid incompatible activities, properly handle clients' money, develop appropriate relationships with other professionals, and not improperly supersede other accountants. The document provides detailed rules to help accountants attain the highest ethical standards.

1. Professional Ethics
BY
Atta-ur-Rahman Arif

2. INTRODUCTION
Ethics = Moral Principals or the science of
Moral Values and duties (Webster)
• Any system of Principles or Rules
• Standard of Conduct by which the
members of any professional accounting
body are guided in their daily activities
• Detailed rules, formulated by concerned
professional bodies

3. Objectives
• To perform their duties and responsibilities
• To attain the highest levels of performance in
accordance with the ethical requirement
To achieve these objectives professional
accountants they have to establish
▫ Credibility
▫ Professionalism
▫ Quality of services
▫ Confidence

4. Guidelines of Ethics
• Applicable to all Professional Accountants
1. Integrity and objectivity
2. Resolution of Ethical Conflicts
3. Professional Competence
4. Confidentiality
5. Tax Practice
6. Cross Border Activities
7. Publicity

5. Integrity and objectivity
• They have important role in society
• Providing services to investors, creditors,
employers business community, government
and public.
• They must be
▫ Straight forward
▫ Honest
▫ Sincere
▫ Protect integrity

6. Resolution of Ethical Conflicts
• Should be conscious of and be alert to such
factors which give rise to conflicts of interest.
• Should follow established policies of the
employing organization to seek a resolution
• Should consult with a professional
accountancy body for obtaining a possible
action
• If still exist then should resign

7. Professional Competence
• High standard to general education
• Specific education, training
• Professional Examination in relevant
subjects
• Experience
• Continuing professional education
• Refrain from agreeing to perform
professional services which they are not
competent to carry out, unless technical
advice is obtained from experts.

8. Confidentiality
• Maintain the confidentiality of information
▫ During the tenure of audit
▫ After completion of audit
• It could be disclosed when it is
▫ Authorized by the client
▫ Required by the law
 In course of legal proceedings
 To disclose to the appropriate public authorities
▫ When there is professional duty or right to
disclose
 To comply with technical standards
 To comply with quality review
 To respond to an inquiry

9. Tax Practice
• If engaged in tax services then must render his
services with professional competence that does
not in any way impair integrity and objectivity.
• Not give assurance that tax return prepared and
the tax advise offered are beyond challenge.
• Client must be aware about limitations.
• Rely on the information furnished by
client/employer
• In case of false information give warning to client.

10. Cross Border Activities
• If ethical services are less strict in the country
were performing duties, then used IFAC (The
International Federation of Accountants )
guidelines
• If ethical services are more strong than IFAC
guidelines then ethical requirements of that
country will be followed.

11. Publicity
• Should be known to public through a
professional body but cannot publicize his
services except
▫ If appointment made in a matter of national or
local importance
▫ Seeking employment or professional business
▫ Author of articles on professional subject.
▫ As a trainer in a professional seminar and course
(not undue prominence)

12. Guidelines of Ethics
• Applicable to Professional Accountants in
Public Sector
1. Independence
2. Fee and commission
3. Activities incompatible with the practice of public
accountancy
4. Client’s monies
5. Relationship with other Professional accountants
6. Superseding another professional accountants
7. Advertising and solicitation

13. Independence
• Financial involvement with or in the affairs of
client
• Appointment in companies
• Provision of other services to audit clients
• Personal and Family relationship
• Fee
• Goods and Services
• Ownership of Capital

14. Fee and commission
• Professional accountant in practice is entitled to
professional fees for the services he renders to
his client by applying skills and knowledge.
• Should not accept commission for the referral of
the products or services to others

15. Practice of public accountancy
• Should not engage in any business, occupation
or activity which impairs or might impair
integrity, objectivity or independence, or the
good reputation of the profession

16. Client’s monies
• Not legally allowed to hold the client’s money.
• If allowed legally than open a separate
account in a bank and deposit such money
promptly.
• Also provide a statement of accountant to the
client once in a year.

17. Relationship with other accountants
• If new branch of business open where exiting
accountant could not provide services than
higher another accountant with consultation of
firm.
• Not accept those services whose expertise not
have
• Should limit his services to the specific
assignment by referral from existing
accountant

18. Superseding other professional
• A proprietor has a right to change
accountant, he should ask from existing
accountant:-
▫ Information on any professional reasons
▫ All necessary details to be able to come to a
decision
• Existing accountant
▫ Should reply and advise that why not accept the
appointment
▫ Disclosed the matters properly

19. Advertising and solicitation
• Not allowed to obtain clients by advertising or
solicitation, except
▫ Staff recruitment (through public
advertisement)
▫ Publicity on behalf of client
▫ Brochures and Firm Directories
▫ Stationary and Name Plates
▫ Newspaper announcements